The War for Supply Chain Talent
Written by: Tony Richter, Partner at Bastian Consulting
Global supply chains are under greater pressure than ever before due to ongoing disruption caused by the pandemic. Increased unavailability of everyday goods and supermarket shortages have both raised the profile of the supply chain sector and highlighted how fragile interconnected logistics systems can be and how easily supply lines can be broken.
Compounding supply chain issues in recent times has been a lack of specialist talent. Just as supply chains were challenged by increased online orders and a scarcity of goods, the worker pool in Australia with specialist relevant skills and experience was also impacted and diluted through international border restrictions.
Simply put, companies are struggling to find the right supply chain talent for their business today. There's a huge need for talent that can fix supply chains or talent that can scale supply chains, but not enough workers. Most companies need workers either because they weren't prepared for the current talent crunch and have now realised they need to address their worker shortage, or they actually were prepared and properly skilled, which led to their business gaining market share, which as a result means that they need more headcount to service their own rapid growth.
In Australia, there is an acute shortage of experienced workers in roles like WMS implementation or configuration and those with digital skills in automation. These types of workers are central to businesses attempting to digitally transform their own supply chains to automate processes and meet demand in an eCommerce environment, so it is of little surprise that they are so valued right now.
An additional challenge faced by companies looking to bring in new talent is that fewer and fewer people have a comprehensive knowledge of the entirety of supply chains and how each part works and depends on the other. The trend in the last ten years has been to find supply chain professionals that were specialists in one specific area, and while that might meet a company's short-term needs, it also makes it harder for these specialists to have a macro understanding of the bigger picture. New entrants into the supply chain sector also appear keener on office roles – such as working in analytics or technology. However, without experience on the warehouse floor, they’re never going to know how the decisions they might make will actually impact other areas of the business, which can lead to operational and personnel tensions.
There is a growing need for generalist supply chain professionals. Someone who has supply chain and procurement experience along with technology and e-digital skillsets to meet the needs of companies looking to scale or troubleshoot supply chain issues. Companies need staff with operational know-how, the ability to take data and model scenarios, make smart decisions and execute digitally.
Given the lack of experienced workers, companies need to be wary about trying to do too much with too little. If a business is trying to meet increased supply chain demands without any extra workers (because they cannot find or afford new talent) and they are forced to ask their existing team to take on more - work for longer and more frequently - this situation is not viable in the long-term. If existing team members do not feel like they are properly supported or valued, it can cause worker burnout or distress, leading to staff discontent eroding workplace culture and increasing turnover at a time when finding replacement workers has never been harder.
Although many businesses might be hoping that the reopening of international borders will present opportunities to attract workers from outside of Australia and New Zealand, increasing the available worker pool and easing the local talent crunch, the opposite may actually be the case. As Australia has some highly sophisticated supply chains and a strong reputation for investing in training workers, professionals in this country are prime candidates for international companies. So, we could actually see a brain drain of highly skilled workers to overseas markets that also need for experienced supply chain professionals. For instance, Asia is experiencing growth in cold-chain facilities and networks right now, and the amount of talent required to design and automate these new sites is significant – leading many organisations to consider highly regarded Australian workers.
Given the increased competition for workers today, companies have to think outside the box to attract and retain talent. This includes offering sign-on bonuses and retention bonuses to mid-level workers to attract their interest - a move that previously was reserved for senior workers. It also means taking a different approach to finding the next generation of supply chain leaders. Bastian Consulting was recently engaged by a large beverage manufacturer to help it scale its team. This meant analysing its wider workforce to uncover individuals outside of the supply chain team with appropriate and transferable skills and knowledge base, as these workers could be onboarded faster and were more likely to feel comfortable in a new role. Companies that undertake this process to introduce future supply chain professionals into their wider organisation and provide training and hands-on experience to accelerate their learnings will be better positioned in 2-3 years’ time.
Unfortunately for many companies, the war for talent in the supply chain sector is not going away in the short-term. As companies recognise that their supply chain is central to their business operations, the need for experienced workers will only grow. It is those companies that recognise the challenge, manage their existing teams and upskill workers to bring through new professionals that will be successful in the long run.
For more information around how your business can attract workers in a talent crunch, please visit: https://bconsult.io/
