STREAM 5 LEADERSHIP & HUMAN CAPITAL · PDF fileINTERNATIONAL CASE STUDY – Global...

STREAM 5 – LEADERSHIP & HUMAN CAPITAL

ABE ESHKENAZI, CEO, APICS (USA)

INTERNATIONAL CASE STUDY – Global Viewpoint on Developing Supply Chain Talent

2 © APICS Confidential and Proprietary


Leading the Industry

APICS is globally the leading association advancing supply chain and

operations management. Our research, education and certification programs

elevate individual and corporate supply chain performance, innovation and

resilience.

APICS Products and Services

Professional Membership

Research and Publications

Education

Certification

Events

APICS Supply Chain Council – officially merged August 2014


APICS Develops People

▪ Over 102,000 Certified in

Production and Inventory

Management

▪ Over 17,000 Certified

Supply Chain Professionals

▪ In over 100 countries

▪ Supported by 295+ partner

organizations

▪ And over 2,000 volunteer

subject matter experts


APICS SCC advances

supply chain and

operations

management and

innovation through

research, publications,

education and talent

development.


APICS Supply Chain Council (SCC)

Global, non-profit organization that developed and actively manages the

Supply Chain Operations Reference (SCOR) model. The SCOR® model is

globally recognized as the standard framework that links supply chain

process, metrics, best practices and technology into a unified structure.

Since 1996, over 5,000 companies worldwide have used SCOR®.

APICS SCC Services

Research Projects, Corporate Advisory Board, Executive Summit

SCORmark™ Benchmark

Training is now available through APICS

Publications, Resource Library, and Case Studies

Other Value Chain Frameworks including M4SC, DCOR®, CCOR®, and PLCOR®


APICS and APICS Supply Chain Council

APICS SCC APICS

Training,

certification and

networking

Research,

Benchmarking and

Body of Knowledge

APICS Value

Proposition

APICS delivers a total individual and corporate value proposition.

We help individuals achieve career development goals.

We help corporations achieve strategic supply chain goals.

Individuals Corporations, and

Institutions


2014 Ranking of Association Certifications

Association/Certification 1st 2nd 3rd Weighted

Total

APICS (CPIM/CSCP) 229 76 18 857

Supply Chain Council (SCOR Professional) 56 62 76 368

ISM (CPSM/CSM/CPSD) 44 56 42 286

Project Manager Professional (PMI) 20 52 38 202

CSCMP (SCPro) 22 28 14 198

Chartered Institute of Purchasing & Supply 14 15 12 136

Chartered Institute of Logistics & Transport 12 13 19 84

SCM World 2014 Chief Supply Chain Officer Survey identified APICS as

the top association certifications as markers of supply chain.

Supply Chain Leadership Development


Supply Chains are a Strategic Asset

Supply chains are no longer simply cost centers that support procurement, logistics and distribution activities. Supply chains have moved from a tactical to a strategic imperative and supply chains need strategic managers and leaders.

Supply chains that are integrated into organizational strategy

Increase organizational effectiveness by improving cross-functional communication and collaboration

Represent an opportunity to gain a competitive advantage

Have critical impact on the bottom line

Organizations must have supply chain leaders at the highest executive level to support growth.


Technical Expertise is not Enough

Supply chain subject matter experts still must have

solid technical expertise but also need...

Cross functional management skills - supply chains are a vast

network of products, services, information, and finance; they perform best

in the long-term through successful leadership and cross functional

integration

International exposure – supply chains span the globe and SCM

professionals need to have experience working with suppliers and vendors

around the globe

Organizational support – executive support for supply chain activities

and concerns is necessary for supply chain experts to become supply

chain leaders


The APICS Top 10 Survey

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Ensuring optimal supply chain synchronization

Managing supply chain complexity

Enhancing supply chain tactics and strategy alignment

Increasing supply chain visibility

Managing collaboration within my organization

Improving customer service

Improving inventory management

Improving S&OP, forecasting, or demand management

Reducing costs or improving cost control

Top Focus Areas for 2015

Very Important Important Not Sure


…people believe manufacturing is

very important to economic prosperity

2. Technology development center

3. Energy production facility

4. Healthcare facility

5. Retail center

6. Communications hub

7. Financial institution

Manufacturing Facility #1 If given an opportunity to

create 1,000 new jobs in

their community,

what business tops the list?

Manufacturing Does Matter

% 30 90

70 20 60 40

50 10 80

Source: 2015 Manufacturing Institute and Deloitte Public Perception of Manufacturing Study


(Mis)Perceptions Cost Us Workers


Ranki

ng o

f Indust

ry P

refe

rence


Filling Jobs Is Difficult…

SIX out of TEN open skilled production positions

are unfilled due to talent shortage

Source: 2015 Manufacturing Institute and Deloitte Skills Gap Study

80% of manufacturers are

willing to pay more than the market rates even

when

of executives surveyed agree there is a

talent shortage in U.S. manufacturing 84%


…And It’s Going to Get More Difficult

Source: 2015 Manufacturing Institute and Deloitte Skills Gap Study

2.7M baby boomer retirements

700K MFG jobs expected from economic expansion

3.4M manufacturing jobs are likely to be needed by 2025

1.4M jobs are likely to be filled

2.0 M jobs unfilled due to the skills gap


Talent and Skill

Despite the potential of dramatically improved

processes and technology for material handling and

logistics systems in the coming years, much of the

work in the industry will continue to be done by a

human workforce in the year 2025. Moreover, other

aspects of this [technology], such as mass

personalization, will require levels of operational

flexibility that can only be handled by a skilled and

creative workforce. In other words, people will

continue to be vital to the industry in 2025. U.S. Roadmap for Material Handling and Logistics, 2014


There is Hope…

Internships, work study or apprenticeship

Tours of advanced manufacturing facilities

for students

72%

52%

Programs would increase interest in manufacturing


Those familiar with manufacturing are 2x as

likely to consider it


7.4%

17.4%

36.2%

39.0%

0.0% 20.0% 40.0% 60.0%

More of a problem at entry level

More of a problem at senior leadership

Similar across all levels

More of a problem at mid level

CSCO Report 2011, SCM World

Talent Management


Talent and High-

Performing Supply

Chains, Gartner

2011


Biggest Challenges in SC Talent Development

12%

28%

36%

61%

32%

43%

0% 18% 35% 53% 70%

Demographic shifts causing loss of talent

Developing talent globally

Meeting compensation and work/life

requirements

Lack of recognition of SC training importance

Best staff leaving for other

positions/employers

Insufficient training for technology and

processes

APICS Research May 2012


The Training Gap

Manufacturers

spend an

average of

$3,000 per new

employee

training and only

$1,000 per

current

employee

Source: 2014 Accenture Training Study

Less than $500

$500-$1,000

$1,000-$5,000

$5,000-$10,000

More than $10,000

Less than $500

$500-$1,000

$1,000-$5,000

More than $5,000

New Hires Overall Training


Challenges in Respect of Knowledge Workers

CSCO Report 2012, SCM World

APICS - Australia Survey


State of Operations Management Profession

Inaugural survey sponsored by APICS and apicsAU

Conducted by the University of North Carolina

Wilmington

Addresses

― Anticipated hiring and layoffs in next 12 months

― Current salary and compensation by job function/title

200 respondents across Australia


Hiring-Layoff Trends

24% anticipate hiring within the

next 12 months

• 24% anticipate layoffs within the

next 12 months


Compensation Trends

Average annual compensation across all areas was

$127,590 (AUD)

― This is approximately 5% higher than reported in the

United States (adjusted for currency).

Gender bias exists across all areas

― In the area of supply chain, men earn 24% more than

women.

― This is also consistent with the United States where men

in supply chain earn 30% more than women.

― The most pronounced gender gap in in the area of

Execution and Control of Operations where men make

56% more than women.


Average Salary and Bonus by Job Category

$0

$20,000

$40,000

$60,000

$80,000

$100,000

$120,000

$140,000

$160,000

Execution andControl of

Operations

Purchasing/CRM Supply Chain Other Overall WeightedAverage

Average Salary Average Bonus


Average Total Compensation by Geographic Region

$0

$20,000

$40,000

$60,000

$80,000

$100,000

$120,000

$140,000

$160,000

WesternAustralia

SouthAustralia

Queensland New SouthWales

ACT Victoria Tasmania

Female Male


Average Salary by Job Area

$0

$20,000

$40,000

$60,000

$80,000

$100,000

$120,000

$140,000

$160,000

$180,000

Execution & Controlof Operations

Purchasing/CRM Supply Chain Other *Overall WeightedAverage

Female Male


Average Total Compensation by Age

$0

$20,000

$40,000

$60,000

$80,000

$100,000

$120,000

$140,000

$160,000

$180,000

$200,000

<=25 26-30 31-35 36-40 41-45 46-50 51-55 56-60 >60

Female Male


Average Total Compensation by Years in Industry

$0

$20,000

$40,000

$60,000

$80,000

$100,000

$120,000

$140,000

$160,000

$180,000

$200,000

<=5 6-10 11-15 16-20 21-25 26-30 31-35 36+

Female Male


Average Total Compensation by Education Level

$0

$20,000

$40,000

$60,000

$80,000

$100,000

$120,000

$140,000

$160,000

$180,000

$200,000

High School Associate/Technical

Bachelor's Master's MBA Ph.D.**

Female Male


Certification Positive Impact on Hiring

0%

10%

20%

30%

40%

50%

60%

70%

80%

CSCP CPIM

Yes No


Average Total Compensation by Certification

$0

$20,000

$40,000

$60,000

$80,000

$100,000

$120,000

$140,000

$160,000

CSCP CPIM

Yes NoCertified?


Rewards of Career Ownership

Improved performance

Expanded professional network

Consideration for a special project

Certified professionals gain...

- Internal recognition

- Qualify for more job roles

- Higher earning potential

Individuals who take responsibility for their advancement and

pursue learning opportunities reap benefits such as:


Certification Advances Individuals

APICS CPIM/CSCP designees on

average earn 12% more than

their peers.

Individuals who pursue professional development provide more value to their organizations and are compensated for their contributions.

Source: APICS SCC OM Employment Outlook, 2014


Supply Chain Leadership Streamlines Collaboration at Intel


Supply Chain Leadership Improves Outcomes at Ingersoll Rand


Supply Chain Leadership Elevates Performance at GE Oil & Gas


Seeking Supply Chain Super Heroes

“… many participants sought what they deemed a

“super-human” combination of people who have

technical depth, business breadth, and the soft skills

to be a leader, influencer, and diplomat. Modern

supply chains call for deep subject matter expertise, an

integrated understanding of broader business

imperatives, and the ability to lead coworkers while

operating across countries and cultures.”

~ MIT Center for Transportation and Logistics Roundtable, October 2010


APICS International Conference

October 5-7 | Las Vegas, Nevada

Thank You!

STREAM 5 LEADERSHIP & HUMAN CAPITAL · PDF fileINTERNATIONAL CASE STUDY – Global...

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