| There are strong interdependencies between supply | | | | experienced employees from other organizations. |
| chain management and HR management and thus it is | | | | Most college graduates start employment at the |
| difficult to identify precise boundaries. Furthermore, | | | | tactical level, and university graduates at the |
| these boundaries are continuously moving to | | | | supervisory/managerial level. |
| accommodate an integration of supply chain and HR | | | | Key Human Resources Challenges in Supply Chain |
| activities. Nevertheless, it is suggested that logistics is a | | | | Sector |
| sub-function of the supply chain. While logistics may be | | | | The following key human resources challenges can be |
| involved to some extent in an increasing number of | | | | highlighted for strategic consideration:o Fragmented |
| supply chain activities, it will never include the complete | | | | Sector/Sector and Related Human Resources |
| supply chain spectrum. For example, functions such as | | | | Implications |
| sourcing, manufacturing, customer service and retailing | | | | Despite the fact that supply chain functionality is rapidly |
| involve logistics in their planning and scheduling in order | | | | becoming of strategic importance to most |
| to optimize the end-to-end supply chain, but their core | | | | organizations across all industry sectors, research |
| operation is depend upon the functioning of HR. Some | | | | findings and validation with sectoral leadership clearly |
| of the requisites of the Human resource in Supply | | | | indicates that the supply chain/logistics sector is |
| Chain are -o Technology | | | | fragmented and lacking an integrated and visionary |
| While process and production technology change has | | | | positioning.o Lack of Awareness and Understanding of |
| been profound, information management systems and | | | | the Sector |
| related technology have evolved at a more rapid pace | | | | There is a general lack of sector awareness amongst |
| and have had a more profound impact on job design | | | | future workforce participants (students), guidance |
| and skill requirements. As such, the technology portion | | | | counsellors and new entrants. Minimal awareness |
| of this study focuses on information technology and | | | | campaigns and activities have been undertaken. Those |
| systems. Technology is most commonly employed for | | | | that exist are generally geographically localized.o |
| inventory and warehousing management. Looking | | | | Attracting, Developing and Retaining Supply Chain |
| forward, employers are considering employing | | | | Specialists an Emerging Priority |
| technology for transportation, and customer and | | | | Technological and regulatory change is influencing |
| supplier relationship management. Not surprisingly, larger | | | | supply chain/logistics business models and human |
| organizations have implemented more supply | | | | resources needs (e.g., regulatory and trade knowledge |
| chain-related information systems than smaller ones. | | | | in short supply for growth-oriented companies).o |
| Interestingly, despite the number of organizations that | | | | Emerging Occupations/Specialist Skill Sets |
| indicate that technology is applied in their organization, | | | | The nature of the occupation within the sector is |
| few indicate they currently have the requisite skills to | | | | changing with the emergence of new jobs related to |
| fully employ technology. Organizations are continually | | | | supply chain specialists, as well as diminishing jobs that |
| updating their technology to improve efficiency and | | | | specialized in one specific supply chain area. In addition, |
| indicate that their ability to keep pace with technological | | | | there has been an emergence of supply chain |
| change is a challenge. | | | | sector-specific corporate services/support expertise |
| The introduction of technology is changing the nature | | | | and competence. The challenge will be that human |
| of work for all occupational categories (i.e. managerial, | | | | resources strategies will need to be adaptable to suit a |
| operational and tactical), in terms of: | | | | variety of types of jobs ranging from semi-skilled |
| - Increased pace of work with less lead time | | | | (operational) to professional (tactical) to executive level |
| - More real-time information and an increased | | | | (managerial). |
| requirement to manage this influx of information. | | | | Strength/Weaknesses/Opportunities/Threats of |
| - As a result of technological change, software | | | | Supply Chain Sector |
| application and analytical and decision-making skills are | | | | The following SWOT analysis provides examples of |
| rapidly replacing traditional manual processes and | | | | strengths that the sector has to draw upon, the |
| abilities. It appears that many employees have been | | | | Weakness it must work to overcome, some |
| able to adapt to this evolution. | | | | opportunities to pursue and threats to ward off. This |
| - There is a necessity for employees to possess | | | | analysis is based on a synthesis of the findings of this |
| technically adaptable skillo Skills and Education | | | | study and is intended to establish the context within |
| Skill requirements do not vary significantly by company | | | | which recommendations can be developed to address |
| size or region, which suggests that supply-chain | | | | current and future challenges facing the sector.o |
| employees can move between regions with some | | | | Strengths |
| degree of ease. Employers indicate that | | | | - A well educated workforce, seeking opportunities for |
| communications and analytical skills are a requirement | | | | growth and development. |
| for all occupation categories across all sub-functions. | | | | - Organizations are willing to invest in learning |
| Other common skill requirements include technology, | | | | technology, health and safety and quality. |
| interpersonal and customer service skills. These skills | | | | - The sector is self-sufficient with a wide array of |
| and knowledge include: | | | | training available through educational institutions, |
| - Financial planning | | | | associations and in-house programs.o Weaknesses |
| - Forecasting | | | | - Fragmented and Lack Strategic Focus |
| - Cost analysis | | | | - Inappropriateness of existing training and education |
| - Knowledge of international business practices | | | | - General Lack of Understanding and Awareness of |
| - Knowledge of laws and regulations | | | | Logistics |
| - Knowledge of logistics functions and the supply chain | | | | - Inability to Apply or Keep Pace with Technologyo |
| - Mechanical skills | | | | Opportunities |
| - Optimization of workflow | | | | - Emerging Best Practices in the sector and |
| - Knowledge of transportation | | | | International talent sourcing |
| - General management and business | | | | - Growing Profile of Logistics |
| - Languages Tactical Operational | | | | - Supply chain and supply chain-related programs are |
| - Contract administration and management | | | | growing in Colleges and Universities |
| - Regulatory knowledge and Negotiation skills | | | | - Continued Development of Partnerships and Sharing |
| - Vendor relations/ management | | | | of Ideas/Best Practices |
| - Performance measurement and quality management | | | | - Effective Training Investments are Made Across the |
| - Knowledge of currency markets and business | | | | Supply Chain Sector |
| implications, especially for procurement managers | | | | - Untapped Labour Sourceo Threats |
| - Emerging emphasis on process and change | | | | - The sector is a collection of occupations, ranging |
| management skills | | | | from non-skilled to professional, and covers virtually all |
| - Ability to work globally (e.g., working with other | | | | industries. |
| cultures) | | | | - Slow adoption of Technology/Ability to Compete |
| - Analytical capability and process improvement (e.g., | | | | - Competing with Each Other for Scarce Resources |
| pending shortage of business analysts) | | | | - Lack of Talent Management Strategies |
| - Employee Engagemento Demand of a Supply Chain | | | | Recommendations |
| Talent | | | | Recommendations for consideration are structured |
| Demand for specific supply chain positions is | | | | according to the following four categories:o Sector |
| predominantly expected to remain constant, with some | | | | Governance |
| growth predicted for positions in logistics information | | | | The supply chain sector is rapidly becoming |
| systems tactical and operational, warehousing | | | | strategically important to most organizations across all |
| operational, customer service tactical and | | | | industry sectors, and that it is a highly fragmented and |
| transportation operational. There was an overall | | | | disparate sector, it is recommended that a nationally |
| increased reliance on knowledge-based positions (e.g., | | | | focused integrating mechanism or sectoral forum be |
| technical logistics knowledge, information technology | | | | created. This integrating mechanism could take the |
| knowledge, supply chain specialists) and customer | | | | form of a human resources sector council. The council |
| service positions (sales, customer service, client | | | | must be unbiased and provide for full stakeholder |
| management). Manager-level positions were commonly | | | | access, and Governance composition would ideally |
| cited as difficult roles to fill (e.g., functional managers, | | | | include representatives from all key stakeholders and |
| general managers, project managers, etc.), with | | | | provide for regional participation. |
| supervisor and analyst roles also identified as a | | | | There is also a need for ongoing collection and |
| challenge. Examples of specific jobs identified as | | | | monitoring of labour market information for the supply |
| difficult to fill include: | | | | chain sector in order to identify and understand |
| - Inventory (e.g., inventory analysts, planners, | | | | changes, impacts and sector trends. This information |
| managers); | | | | may be employed to establish priorities and to |
| - Purchasing (e.g., purchasers, contractors, buyers); | | | | promote career opportunities and attract similar talent |
| - Logistics and supply chain specialists (e.g., supply | | | | and skill sets that are of interest to the supply chain |
| chain and logistics analysts, planners and engineers); | | | | sector.o Training and Development/Education |
| and | | | | It is recommended that this council initiate an effort to |
| - Warehousing and operations (warehouse | | | | clarify and communicate educational and certification |
| supervisors, managers, general warehousing and | | | | options within the sector. To facilitate this, it is |
| operational personnel). | | | | recommended that a national integrating entity, possibly |
| Positions are typically filled from within the current | | | | the sector council, create an informational repository of |
| sector-wide pool of supply chain employees, either | | | | post-secondary academic programs and industry |
| through internal development and promotion or through | | | | association certifications, and implement an enabling |
| the acquisition of supply chain employees from other | | | | marketing strategy to provide web-based access and |
| organizations. Employees leaving the workforce due to | | | | promotion to all of interest. |
| retirement do not appear to be an eminent challenge, | | | | It is also recommended that the institutions (in |
| as other is easily available.o Training & | | | | collaboration with industry) that envision themselves as |
| Development | | | | emerging centres of expertise/excellence in local, |
| Employers indicate that technical development courses | | | | regional or national marketplaces appoint functional or |
| are essential for supply chain personnel to stay current. | | | | departmental heads and expand their proactive liaison |
| The most common means of employee development | | | | with industry.o Marketing the Sector and the |
| are on-the-job training and external courses. For the | | | | "Profession" |
| most part, employees indicate that they are satisfied | | | | In order to address current attraction challenges and |
| with the training they have received and that it has | | | | the low awareness levels of the supply chain sector |
| met their needs. Generally, effective training | | | | and its career opportunities, there is a need to better |
| investments, greater than the Canadian average, are | | | | educate and promote the sector in target marketplace |
| made across the sector; however, investment in | | | | segments, with particular emphasis on those making |
| smaller organizations is less than optimal. The most | | | | career and education decisions (e.g., students and |
| common forms of support provided to employees are | | | | those interested in changing careers).o Human |
| tuition reimbursement, time off for external courses | | | | Resources Processes and Practices |
| and the provision of in-house training. | | | | Given that sector organizations are at different stages |
| Work/study programs for supply chain employees are | | | | of human resources strategy sophistication as a result |
| not widely used; however, all types are employed to | | | | of their maturity, business strategy and model, their |
| some degree. Internal training tends to be focused on | | | | ability to execute human resources solutions varies, |
| technical supply chain and logistics development, | | | | despite the fact that the human resources challenges |
| interpersonal and people management skills (e.g., | | | | they encounter may be similar. To facilitate the |
| supervisory skills, team building, negotiations, leadership | | | | development of better human resources practices |
| and coaching) and health and safety. | | | | across the sector, it is recommended that |
| Colleges were more likely to offer dedicated logistics | | | | "best-practice information sharing" mechanisms be |
| or supply chain management programs than the | | | | created. |
| universities, and universities were more likely to offer a | | | | In response to interest expressed by operational |
| logistics or SCM specialization within another program. | | | | employees and given the increased emphasis on |
| Industry alliances are a common mechanism to | | | | quality and customer satisfaction, organizations should |
| develop curriculum or work programs, and are less | | | | consider developing education or information sessions |
| common for research activities. | | | | for operational employees that will augment their |
| Lack of a career path and succession planning are the | | | | understanding of the economics of the business and |
| most commonly cited human resources challenges, | | | | their role in this context. This would enhance employee |
| and there is an increasing need for succession and | | | | engagement and, ultimately, performance by providing |
| career planning. In terms of career progression, | | | | them with a line-of-sight and understanding of the |
| employers typically develop from within or hire | | | | broader supply chain. |