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Home » Blogs » Think Tank » Transforming the Supply Chain Industry With Gender Diversity

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Transforming the Supply Chain Industry With Gender Diversity

A MAN AND A WOMAN ENGAGE IN CONVERSATION IN A WAREHOUSE

Photo: iStock.com/Stella_E

November 9, 2022
Anita Raj, SCB Contributor

According to a Gartner survey from 2021, women only account for 41% of the workforce in the supply chain industry. That’s in comparison to the 56% of women who participated in the overall labor force that same year. The gender gap grows in leadership positions. The survey also found that women hold only 15% of executive roles in the supply chain sector.  

Why does the industry have such a wide gender gap, and how can we overcome it?  

Understanding the Gender Gap in the Supply Chain Industry 

For a long time, supply chain management was viewed as an outgrowth of blue-collar professions. As such, the majority of people in leadership roles were promoted from the shop floor. Men typically held most of the transportation and front-line warehouse positions and therefore were most likely to become leaders in the field. What’s more, educational opportunities were limited, making it even more challenging for women to climb the ranks of the supply chain industry — and even enter the field itself.  

It’s unsurprising, then, that another 2020 study by Gartner found that women held a mere 17% of chief supply chain officer positions. Although that’s a 6% increase compared to 2019 and the highest rate since the first edition of the survey in 2016, it doesn’t entirely offset the gender gap in the supply chain field. Case in point: The number of women in vice president and director-level positions decreased from 28% to 21% between 2019 and 2020.   

Companies in the consumer goods and retail supply chain spaces had nearly 25% of VP roles filled by women, whereas the number of women VPs in industrial organizations remained at only 13%. Gartner identified two major factors that caused this discrepancy between industries. First, industrial firms were more likely to require STEM degrees for leadership roles that they filled, and women statistically hold fewer STEM degrees than men. Second, consumer goods and retail supply chain companies were more likely to have organizational targets and goals around gender diversity. 

Overcoming these significant gender gaps in the supply chain industry will be critical for business success and more agile supply chains. 

The Benefits of Including Women in the Supply Chain Industry 

In recent years, we have seen supply chain organizations make major changes to become more flexible and resilient to combat the numerous delays, shortages, and bottlenecks the industry has faced. The changes being implemented are bringing more diverse perspectives to the table. In turn, this has enabled companies to challenge legacy-focused mindsets, adapt to the shifting regulatory mandates in the industry, adjust to trends quicker, and embrace innovative automation technologies. 

As a woman in the field, I know women have skills that position them to make viable changes in the supply chain. Women supply chain managers and leaders at major organizations, such as Stericycle, UPS, and Johnson & Johnson, are likely to implement more balanced solutions by leading with cooperation, collaboration, and empathy. 

Women think about complex, dynamic supply chain ecosystems intuitively, determining the best ways to align them successfully. It has also been said that women have persevered and performed far better than their male counterparts during the Great Resignation. Part of the reason for this is women’s inclusive nature.  

Over the past few years, after all, leadership and organizational success have been nearly impossible without empathy. McKinsey & Company’s 2020 report, “Diversity wins: How inclusion matters,” found that gender diversity predicted financial performance — companies with more than 30% of executives who were women outperformed those that had fewer. 

Furthermore, it is increasingly difficult to attract talented staff without a strong diversity commitment — which usually is led by women executives who have personally experienced barriers to equality in the field. It’s imperative to build a culture that supports diverse talent when the labor market is so tight.  

There are several ways to increase the number of women in the supply chain industry, including:  

  • Leading by example. Remind senior leaders about the importance of diversity and inclusion within the company’s overarching vision. Communicate the impact of diversity on leadership, the workforce, and customers. Lead by example to inspire sustainable change at all levels of an organization.
  • Attracting and retaining diverse job candidates. One way to combat gender stereotypes is by showing examples of the company’s successful women leaders. Sharing these role models on your website or during the recruitment process will show potential employees that you are dedicated to equality. Also, building support networks and encouraging group discussions allows employees from diverse backgrounds to learn from each other, build personal relationships, and find a sense of belonging in the workplace.
  • Making space for women in the industry. Often, a person’s career will grow rapidly between the ages of 25 and 45. But women who choose to become mothers or caregivers can be left out of the picture, especially if they work at organizations without family-friendly practices. So, offer autonomy and focus on results. An inclusive culture is more productive than a culture that values face time and constant connectivity and opens the door for more women.

Although supply chains traditionally focused on cost efficiency over agility, we are seeing a significant shift. As these trends continue to evolve, companies must continue to bring on skilled women who can provide new and diverse perspectives and push the industry forward. 

Anita Raj is the vice president of product marketing at ThroughPut Inc.

 

Global Supply Chain Management HR & Labor Management

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