By 2030, the supply chain market labor market is estimated to experience a 20 percent shortage of trained employees. The skill gap is at the intersection of new process evolution based on emerging analytics, the evolution of blockchain, and the use of streaming data for the building of outside-in processes. While most companies have established programs for new hires and high-performance employees, the training of supply chain employees on next-generation processes is a gap. -Lora Cecere, Founder, Supply Chain Insights

Supply chain processes for source, make and deliver were defined in 1982. The first-generation pioneers defined early processes. These were largely regional and functional by design. Fourth- and fifth-generation pioneers are building global supply chain processes. The rapid retirement of baby boomers and the explosion of supply chain as a discipline is a major factor in the shortage of supply chain talent.

The talent gap is in the area of senior managers and directors in the area of planning. There is not a shortage in the area of supply chain execution. In these roles, companies are seeking employees that are good at system thinking and supply chain strategy with strong understanding of new forms of analytics and the ability to see the “big picture.” In general, baby boomers in supply chain are significantly more satisfied than millennials and generation X employees. Companies that are out-performing their peer groups have five characteristics:

• Next-generational Supply Chain Process Training. Companies with higher levels of employee satisfaction are enabling innovation and allowing business leaders to test new technologies. This is often in conjunction with the charter for the Supply Chain Center of Excellence.
• Testing of New Forms of Analytics. Innovation is accelerating. Employees that are able to learn about new innovation and network across companies with their peers on the evolution of supply chain processes are significantly more satisfied. In contrast, companies that limit innovation rate lower on employee satisfaction.
• Centers of Excellence. While 33 percent of companies have a center of excellence only one in two are deemed successful. When a company has a successful center of excellence, there is better alignment and overall employee satisfaction.
• Cross-functional Training. A successful tactic for building supply chain leaders is cross-functional team development and experiences. Companies that enable cross-functional moves have higher rates of employee satisfaction.
• Well-defined Development Plans. Millennials are significantly more satisfied when there are clear development plans.

While the evolution of supply chain processes is relatively new when compared to finance, marketing or manufacturing, the challenges in building supply chain talent are accelerating. The problems in North America and Europe are magnified in the building of global supply chain teams.

The Outlook

Companies that aggressively develop supply chain talent are better at managing costs and balancing customer service requirements. The pace of acceleration of next-generation processes is happening faster than the building of supply chain talent. This is an opportunity for all.