Preparing the Workforce for Tomorrow’s Supply Chain: Competencies
The importance of technology in supply chains continues to increase with the many recent external changes. These are crucial for the effective functioning and success of organisations in today’s complex and interconnected business environment. Depending on the global trends, the type of technologies may differ but fundamentally, the needed skills and competencies can be narrowed down to 4 buckets, critical core skills and technical skills.
1. Expertise in Big Data, Technology and Industry 4.0
In tomorrow’s business landscape, expertise in Big Data, Technology, and Industry 4.0 has become indispensable for optimising supply chains.
- Proficiency in Big Data analytics allows organisations to glean valuable insights from extensive datasets, improving decision-making and providing a more precise understanding of demand trends.
- Expertise in cutting-edge technology, particularly through the adoption of Industry 4.0 principles and advanced automation, facilitates the development of intelligent and interconnected supply chains.
This expertise fosters real-time visibility, agile responses to changes, and improved efficiency throughout the entire supply chain ecosystem. Organisations leveraging these capabilities not only enhance operational performance but also position themselves at the forefront of innovation in the dynamic realm of modern supply chain management.
The premium on knowledge is high and such growth would almost certainly not have been possible had access to certain practical skills and scientific knowledge not been readily accessible.
Transitions have never been easy, but once the transition is completed,
there will most likely be positive impact. This latency is caused by the necessary adaptations to new technologies and working methods. A certainty is that innovation generates growth and technology will revolutionise the way people work.
Takeaway: Software is still eating the world.
Once a new technology rolls over you, if you’re not part of the steamroller, you’re part of the road.
2. The ability to innovate for added resiliency
The Supply Chain Management Jobs Transformation Map Study for Singapore points at three outcomes two of which I found interesting:
- Shift towards diversified sourcing
- Decentralisation and localisation
(the third outcome is Business Continuity Planning.)
Suppliers and buyers are in a constant power struggle to out-manoeuvre one another. This is ultimately a game of chess. While the chessboard is being played, it is also important to ensure that a strategic fit is achieved.
If a mismatch exists between what the supply chain does particularly well and the desired customer needs, the company will either need to restructure the supply chain to support the competitive strategy or alter its competitive strategy.
Takeaway: Evolve strategically
Strategy is the economy of forces.
3. Adherence to sustainability principles
Sustainable development can be viewed as “development that meets the needs of the present without compromising the ability of future generations to meet their own needs”. A visual framework extending this definition can be see in the Doughnut.
Garrett Hardin (the ecologist and microbiologist) had great foresight when he described the tragedy of the commons as a dilemma arising when the common good does not align perfectly with the good of individual entities. Getting any agreement on action is difficult because the optimal joint action is not individually optimal.
For greener supply chains, the report highlights three outcomes:
- Ethical sourcing and procurement
- Sustainability targets
- Reverse logistics and the circular economy
None of this is new. Thankfully, it is now a focus.
Let’s hope that double materiality gains better clarity in the bid to drive sustainability goals.
Takeaway: Don’t provoke Mother Nature
Be part of the solution, not part of the pollution.
4. Customer centricity in dynamically evolving environments
A company must understand the customer needs for each targeted segment and the uncertainty these needs impose on the supply chain.
- These needs help the company define the desired cost and service requirements.
- The uncertainty helps the company identify the extent of unpredictability of demand and supply that the supply chain must be prepared for.
A key issue is the scope of strategic fit with respect to the supply chain stages. This boils down to either optimising local performance, maximising supply chain surplus or somewhere in between to enhance the customer experience.
Takeaway: Aim for strategic fit.
The advance of technology is based on making it fit in so that you don’t really even notice it, so it’s part of everyday life.
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