The global supply chain is undergoing significant transformation driven by advanced technologies like artificial intelligence (AI), robotics, and Blockchain. While these advancements raise concerns about job displacement, they in fact present exciting opportunities for those willing to adapt and embrace new skill sets. These innovations are reshaping how goods are sourced, produced, and distributed. Additionally, sustainability concerns, regulatory requirements, evolving customer expectations, compounded by the ‘Amazon effect’ and intensified competition pressures, along with geopolitical factors, further contribute to the complexity of the supply chain landscape.
In essence, a business, particularly its supply chain, comprises three essential pillars: People, Technology, and Processes. It’s widely recognized that people are the most critical asset in any supply chain. Therefore, as supply chains become more complex, it’s crucial for businesses to recognize the importance of their people and to adapt their human capital policies. Traditional skills are no longer sufficient; instead, supply chain professionals must possess agility, creativity, and innovation to thrive in this new environment.
In this blog post, we’ll explore how these changes are impacting supply chain jobs and what skills are needed for success in this evolving landscape. Additionally, we’ll discuss how businesses can adapt their strategies to effectively train, retain, and empower their workforce amidst these changes.
We’ll focus on three key areas where individuals play a critical role:
- Addressing disruptions
- Embracing technology’s opportunities
- Addressing Sustainability Challenges
1. Addressing disruptions
Since the onset of the Covid-19 crisis, businesses and supply chain leaders have heightened their focus on overcoming disruptions, mitigating risks, and fostering resilience across their value chains. Companies are continuously adapting their supply chain networks and processes to keep pace with global disruptions, yet many acknowledge there’s still much work to be done.
Recent events like The European Parliament’s approval of stricter toy safety rules and the French Parliament’s proposal of penalties for fast fashion products are examples that emphasize the need for adaptability and the importance of flexible supply chain strategies.
There’s no easy fix for these challenges, but having talented individuals can certainly make a difference. New roles, with greater emphasis on purpose and impact, are emerging or being reengineered to tackle these changes head-on.
Let’s consider supply and procurement roles, responsible for supplier selection and management, and ensuring smooth inbound flow of goods. The traditional procurement strategy, which primarily focused on securing low-cost suppliers with a limited number of partnerships, is becoming fundamentally inadequate. Instead, professionals in these roles need to diversify their supplier base while ensuring compliance with sustainability regulations and closely monitoring supplier performance.
Furthermore, effective management of disruptions requires individuals capable of identifying inefficiencies and potential risks within the supply chain. They analyze bottlenecks and simulate various scenarios to assess potential impacts, proposing proactive measures to enhance supply chain preparedness.
In addition, dedicated leaders are essential for developing crisis management plans and implementing detailed procedures, ensuring swift and confident response during crises while maintaining adherence to established protocols. Roles focused on disruptions, crisis, and risk management within supply chains are expected to gain prominence and attract professionals seeking to make a direct impact on company performance.
2. Embracing technology’s opportunities
Technologies like Robotic Process Automation (RPA) are revolutionizing logistics administrative tasks, while AI is enhancing demand forecasting and transportation optimization. Moreover, emerging technologies such as quantum computing, drones, and the metaverse are poised to further reshape the supply chain landscape. To keep pace with these changes, supply chain professionals must embrace and become proficient in these technologies.
As automation becomes more prevalent, new supply chain roles focused on leveraging technology to improve processes will emerge. These professionals will possess the insight to identify areas for enhancement and the skills to implement and test innovative technological solutions.
Furthermore, advancements in technology are promoting inclusivity and diversity in supply chain physical activities. With the introduction of exoskeletons that support workers and enhance agility and safety, physically intensive jobs are becoming accessible to individuals of all genders and abilities. This not only promotes a more inclusive workforce but also serves to address labor shortages.
3. Addressing Sustainability Challenges
In recent years, there has been a notable shift in business dynamics, driven by the imperative to tackle urgent environmental and social issues like climate change, water pollution, inequality, and forced labor. This shift has led to increased pressure from investors, consumers, and governments, who are now keen on evaluating a company’s sustainability practices and minimizing their broader negative impact on the environment and society.
In response to these evolving expectations and regulatory sustainability constraints, new roles are emerging within the supply chain domain. One such role is that of the Sustainability Compliance Officer, tasked with ensuring that supply chain operations comply with environmental regulations and sustainability standards. Responsibilities include monitoring regulatory developments, conducting audits, and implementing measures to address compliance gaps.
Additionally, there is a growing demand for supply chain professionals with Carbon Footprint certifications, as they focus on measuring and reducing the carbon footprint of supply chain activities. This involves tracking greenhouse gas emissions, identifying emission hotspots, and implementing measures to minimize carbon emissions throughout the supply chain.
Moreover, businesses are increasingly expected to publish sustainability reports alongside traditional financial reports. Therefore, companies require experts proficient in sustainability reporting standards and frameworks. Their role includes collecting and analyzing data related to sustainability performance in the supply chain, including scope 3 emissions, and preparing reports for internal and external stakeholders.
Various other roles are essential within companies to address sustainability concerns, such as Sustainable Packaging Designers and Circular Economy Specialists. These roles complement each other and require dedicated professionals who are passionate about making a positive impact on our planet.
Concluding Thoughts
Organizations that successfully navigate the complexity of future supply chains are those that can seamlessly redefine roles in the supply chain to balance technology innovation and human creativity. Moreover, as supply chain priorities interconnect and reinforce each other, progress in these areas yields multiple benefits over time. For instance, implementing AI-driven analytics to optimize transportation routes, not only enhance sustainability practices by reducing emissions, but also improve customer loyalty and experience through a demonstration of commitment to social responsibility. On the other hand, these kinds of programs provide workers a feeling of purpose, which helps to mitigate talent shortages and increase retention rates. Remember, people’s commitment and knowledge are what make significant change possible.
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