Streamlined, efficient supply chain networks do more than keep a company running. They can provide a distinct competitive advantage, helping organizations reduce costs, beat competitors to market and meet customers’ high expectations.
Today’s supply chain professionals must be ready to adapt to a number of formidable challenges, such as uncertainty around global trade and tariffs. Yesterday’s thinking and strategies might no longer be suitable, but education can help bridge any skills gaps. Programs offered today, such as Michigan State University’s master’s degree and master certificates, combine timely real-world examples with modern theories and case studies to prepare people to handle obstacles and embrace these challenges as opportunities.
Here are some of the trending issues that your entire organization — especially your supply chain employees — needs to be aware of:
Global Trade Uncertainties
Tariffs, even if directed at just one country, could have an impact on virtually every business — even those not involved in manufacturing. In other words, your company will not be immune. In a note to investors, titled “Why Trade Tariffs Could Rattle the Global Supply Chain,” Morgan Stanley reports:
“The integration of supply chains both domestically and globally has meant that any trade measures implemented on a single country or sector will likely ripple outward to other regions and sectors. Moreover, because companies are increasingly bundling goods and services, the effects aren’t limited to manufacturing. The services sector could also feel the pinch of protectionism.”
It is important for supply chain management professionals to begin planning for a wide spectrum of contingencies. This might include sourcing alternate suppliers, which can be time-consuming. Companies will also need to consider options for manufacturing and transportation. Any new arrangement could impact cost structures and product price points.
The Millennial Impact
The 75 million members of the Millennial generation are transforming the customer experience, leading to a seismic behavioral shift that will impact supply chains. The emphasis on customization, personalization and social leadership requires a new approach to many supply chain functions.
Michigan State University finds that the Millennials’ $2.45 trillion in spending power gives them a “megaphone” in supply chain management: “The generation already has influenced the shift toward sustainable operations, diversity and equality, and corporate social responsibility.”
Today, supply chain management professionals must have the skills and tools to communicate directly with customers, speed up delivery of products and services, and provide a satisfying purchasing experience. Millennials interested in issues such as fair trade and sustainability have come to expect transparency into supply chains.
Supplier Diversity
Millennial expectations are emphasizing the importance of supply chain diversity, but the benefits go beyond building stronger relationships with customers. A supply chain that embraces diversity may be nimbler and more effective than one that does not.
The Hackett Group, a consultancy based in Atlanta, says that top performers in supplier diversity “gain access to new markets and improve supplier partnerships” without experiencing a loss in reliability or quality. As such, diversity should be seen as an opportunity to gain a strategic advantage.
Today’s supply chain managers must be able to develop formal programs to reach out to the 8 million minority-owned businesses in the United States. This will often require executive buy-in, alignment with short- and long-term goals, and coordination between multiple company functions.
Disaster Planning
Earthquakes, snowstorms, tornados, floods, hurricanes — if Mother Nature has shown us anything, it’s that she’s chaotic. Supply chain professionals must be prepared to deal with the unexpected and destructive.
Because supply chains are so complex today, professionals must be able to identify and analyze every link to pinpoint the ones that are most vulnerable to disaster. These risks might be outside the organization — your operations might not be directly impacted by an event, but some of your suppliers could be. Some of the risks involve:
- Offline manufacturing facilities
- Disrupted transportation
- Late delivery of services
- Loss of critical infrastructure
Communication is essential for supply chain professionals, both in preparation of plans and in the execution of them. Redundancy is an important consideration — if a vendor or facility is unavailable, arrangements must be made in advance to bring alternatives online as soon as possible. And organizations must be able to act creatively and decisively to restore normal operations quickly.
Education’s Role
Organizations are challenged today to equip employees with the skills they need to work effectively and efficiently. Skills requirements can change rapidly as companies struggle to adapt to an ever-changing business environment. Education is also important to individual employees: Pew Research Center reported in 2016 that 54% of adults in the labor force say that learning and developing their skills are essential for them to keep up in the workplace.
In its 2018 Workplace Learning Report, LinkedIn said that 92% of executives consider soft skills equally or more important than technical skills. Many universities are now embedding soft skills into their supply chain management curricula. Michigan State University, for example, has a required communication course specific to supply chain management in its MS degree program.
Education can help current supply chain professionals in your organization who want to hone their skills and learn about new tools and techniques, and it can also benefit those who want to advance into a supply chain management role.