supply chain management competencies: make or buy? · supply chain management competencies: make or...

Human Factor

Supply Chain Management Competencies: Make or Buy?

Joe F. Schriever Director of Contracts, Procurement and Support Services, Ret.

Texas Juvenile Justice Department

Supply Chain Management

Competencies: Make or Buy?

Joe F. Schriever

CSCP, CIRM, CISA, CQA, CSTE, CTPM, CTCM

Joe F. Schriever

Objectives

• Identify SCM competencies in greatest

demand;

• Recognize the level of proficiency

required; and

• Learn how to develop those competencies.

Joe F. Schriever

Competencies in Demand

Joe F. Schriever

APICS SCM Competency Model

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© 2008 AMR Research, Inc. | Page 17

Critical Skills Priorities: Now and in 20102008 Industry Survey

6 © 2008 AMR Research, Inc. | Page 17

Critical Skills Priorities: Now and in 2010





Joe F. Schriever

2008 Industry Survey

7 © 2008 AMR Research, Inc. | Page 18

Skills Available from the Current Talent Pool


Skills Available from the Current Talent Pool





Joe F. Schriever

2008 Industry Survey

8


Level of Competency Desired


Level of Competency Desired





Joe F. Schriever

Competencies in Demand

• Customer Relationship Management.

• Supplier Relationship Management.

• Business ethics, legal requirements vs. trust.

• Business planning.

• Production planning process.

• Strategic collaboration and partnerships.

• Sales & Operations Planning – S&OP.

• Material management.

• Joint training and development with suppliers and customers.

• SC information technology.

Joe F. Schriever

Leadership vs. Skill Competencies

Skill Competencies

• Technology Enablement

• Strategy and Change Management

• Source

• Customer Management

• Governance

• Plan

• New Product

• Deliver

• Performance Measurement and

Analytics

• Make

• Post Sales Support

Leadership Competencies

• Vision

• Problem solving

• Decision making

• Strategic thinking

• Collaboration/team building

• Innovation/creativity

• Business acumen

• Technical competency

• Trust

Joe F. Schriever

11

Simplest and Fastest Method

Hire well!

But don’t raid your SC partners or weaken the SC by

stealing talent from those you depend on.

Joe F. Schriever

Certification Programs

Competency APICS ISM CSCMP

Vision

Problem solving

Decision making

Strategic thinking

Collaboration/team building

Innovation/creativity

Business acumen

Technical competency

Trust

Education

Experience

Joe F. Schriever

13

Balance Education with Learning & Doing

Plan Shadow Do

24 Months

Education: Basic and Continuing

Joe F. Schriever

Career Path—Supply Chain

Network design Transportation Optimization

Inventory location planning with predictive

analytics Supplier risk analysis

Supply Chain Analytics

Joe F. Schriever

UT Austin Business Analytics Program

• One year program.

• Full-time engagement.

• Structured to have graduates analyze data and

“tell a story” with analytical results.

• Not designed to produce decisions.

• Domestic and international students.

• Highly competitive.

• In-state tuition: $32,000.

• Out-of-state tuition: $38,000.

Joe F. Schriever

16

Development Process

• Education: Fundamental level of relevant education and knowledge – requirement for consideration.

• Shadowing: Follow, attend meetings, ask questions, read … but stay out of the way.

• Planning: Engage in planning processes for various phases of SC development and operation.

• Doing: Engage in SC operations; carry plans into operation.

• Critique: Evaluate every aspect of performance.

Joe F. Schriever

17

Timeframe for Developing Competencies

• Normal: 5 – 8 years. – 1 - 2 years experience in three different SC related jobs. – “Appropriate” project work.

• Intern Program: 6 – 12 months. – 6 weeks – 3 months in various locations or functions. – “Watch and learn” assignments. – “Make-work” reports.

• Fast-track: 18 – 24 months. – Specific projects. – Executive critique. – Transition from “shadowing” to “planning” to “doing” SC

management. – Avoid “boss’ pet” syndrome!

Joe F. Schriever

18

Requirements

• Capable, qualified development candidates. • Executive leaders, not trainers or professors.

– Visionaries. – Innovators/creators. – Practical coalition builders. – Strategic thinkers. – Risk-takers who know when to take risks & when to walk away. – Clear thinkers who make good decisions.

• Variety of learning exposures. – More exposure in a compressed timeframe. – Experiences. – Critiques. – Partners. – Situations. – Results.

Joe F. Schriever

19

Development Experiences: Shadow

• Exposure to strategic and operating plans, strategies and budgets; and the logic behind them relative to markets, product/service lines, SC, finances, and partners.

– Critical discussions of factors considered in development of plans and response commitments for SC members and customers.

– Recognition of risk and reward associated with factors and risk management strategies.

– Development and balancing of S&OP and capital plans.

– Practical experience applying new knowledge before fade-out sets in.

Joe F. Schriever

20

Development Experiences: Shadow

• Exposure to market research and multiple interpretations of the data.

– Marketing: Regional, global, media, pitfalls, channels.

– Finance: Budgets; exchange, interest and tax rates; fees and tariffs; cash flow; ROI.

– Production: Domestic, global, outsourced, virtual, supply and demand matching.

– Supply Chain: Import/export, inventories, distribution processes and infrastructure, materials and information flow.

– Suppliers: Commodity, strategic, outsourced.

– Understand the impact of critical market analysis factors on plans and resource commitments.

– Understand interrelationships of data, data sources, quantitative vs. qualitative analysis.

Joe F. Schriever

21

Development Experiences: Plan

• Involvement in strategic planning process with customers and SC partners. – Logistics: Cost, inventory, schedules, contracts.

– Order fulfillment process: End-to-end, cash-to-cash processes for the whole SC.

– Back-office operations: Information flow, streamlining.

– Technology applications: Implement/integrate/share systems.

– Cost & benefit sharing: Price structure, payment terms, ROI.

– Joint risk-taking: Risk analysis, acceptable/unacceptable risks.

– Joint problem solving: Lean Six Sigma projects, cross-silo projects, channel master leadership.

– Collaboration/team building across organizations: Joint planning and training, product/service development.

– Process integration across silos: Systems, processes, organizations, staff.

Joe F. Schriever

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• Draft change management plans:

– Draft plans to implement SC strategies, changes, and emergency response plans.

• Strategic partnerships: Structure, content.

• Automation: Processes, systems, standards.

• Structural changes: Organizations, budgets, outsourcing.

• New products/services: Bundles, mixed bundles, new development, new markets.

• Mergers and acquisitions: Background research, integration planning, restructures.

• Emergency and risk management plans: Disaster response.

– Participate in implementation projects to track, adjust and execute plants.

Joe F. Schriever

23


• Draft contingency plans for potential changes/problems relative to fundamental assumptions in plans and contracts.

– Analyze research, forecast, SWOT, existing plans and budgets to identify potential problems.

– Draft corrective, preventive and predictive plans.

– Draft contingency plans with trigger points.

– Propose proactive plans to repurpose resources, redirect resources or allocate new resources across silos and organizations.

Joe F. Schriever

24


• Create a shadow planning process with junior staff with a critique by senior staff over a 12 – 18 month period.

– Given the vision, mission and operating results, conduct research, develop assumptions, create strategic plan and resource commitment plan for SC to support strategic and operating plans.

– Senior executives critique process, participation and results.

– Track and evaluate accuracy of forecasts, reliability of assumptions and results from shadow plans.

– Critique performance of shadow plan in supporting strategic and operating plans.

Joe F. Schriever

25

Development Experiences: Do

• Assign SC problems that cross multiple silos and organizations for analysis and resolution.

– Provide direct exposure to real problems with clear impacts on operations.

• Technology compatibility and implementation issues.

• Cross-silo process flow issues.

• Personnel and culture issues.

• Quality issues.

– Provide direct contact with suppliers and customers.

– Potentially provide direct contact with regulatory entities.

Joe F. Schriever

26

Development Experiences: Do

• Assign SC responsibilities.

– Manage a silo: Production, distribution, marketing, finance.

– Manage a supplier relationship: Demand management, schedules, quality, payments, information flow.

– Manage a customer relationship: Order processing, deliveries, payments, information flow.

– Manage a cross-silo process: Order fulfillment process, cash flow process, demand management, product/service development.

– Manage a SC information stream: System interface/integration/sharing, content, timeliness, format.

Joe F. Schriever

Expected Results: SC Leaders

• Initiate SC performance measures.

• Initiate efforts to improve SC performance across silos.

• Initiate product and service upgrades jointly with

suppliers and customers.

• Share benefits and costs with SC partners equitably.

• Invest resources in commodities.

• Invest in reverse logistics.

• Create sustainability.

Joe F. Schriever

Bibliography

• University of Texas McCombs School of Business

• APICS Supply Chain Manager Competency Model

• USFWS Leadership Competency Model

• AMR Research

Joe F. Schriever

supply chain management competencies: make or buy? · supply chain management competencies: make or...

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