Supply Chain Leader- Required Skillset

List of the key skills and experiences that future supply chain leaders

1. Ability to understand end to end supply chain processes. In a manufacturing supply chain, it would refer to all processes from initial sourcing of raw materials through to product manufacture and value-adding activities that take place up to the point where the product reaches its destination. It is neither possible nor appropriate for any one organization to try to acquire and control a complete “end-to-end” supply chain—it is about collaboration amongst key partners that clearly understand their different value offerings and can align on purpose and objectives. Supply chain leaders of the future must recognize this reality and understand the capabilities, needs and objectives of each key supply chain partner so the supply chain operations continue to be effectively realized.

2. Experience across all major aspects of the end-to-end supply chain. In order to truly appreciate the value and role of each part of the chain, it is essential that future leaders have experience and knowledge across many parts of the chain. Future leaders will have spent periods of their careers in manufacturing, logistics/ distribution and retail. Such a broad level of experience and exposure will make them much better qualified to understand the full chain, identify potential risks and, therefore, address issues effectively as they arise.

3. Ability to foresee future market changes, to adapt quickly to new business models. When you consider how much markets and organizations have changed over the past 10 years as a result of the Internet and other technological developments, it is important that future leaders are thinking at least 10 to 20 years ahead. The idea is that your organization is either the one leading the changes or, at the very least, the one with enough visibility to spot them coming in order to react and adapt quickly. Future supply chain leaders will need to be able to drive the speed of change and put in place teams and capabilities to adapt and innovate quickly.

4. Continually question and assess markets and opportunities. If there is one thing that supply chain leaders will be required to do in the future, it is to continue to ask questions, provoke different thinking and assess opportunities based on their experiences as developed through the four key areas of development outlined above. The CEO of any organization in effect becomes the head of supply chain of that organization. He or she is always focused on the internal supply chain but also on the role the organization plays in an external supply chain. How may this supply chain change over time and where does the organization add the best value? Who should be the key collaboration partners and how should relationships develop? At the end of the day, future supply chain leaders need to create opportunities and ensure the organization continues to evolve.

5. Information Technology and Automation Knowledge. To be a supply chain leader, you will need to be familiar with the use of enterprise software applications like WMS, TMS, and ERP, not to mention analytics software, which is increasingly becoming a staple source of leadership decision support. There was a time when supply chain leaders could rely on subordinate employees to do the hands-on work with business information systems, and be content to receive reports and Excel spreadsheets containing data for decision-making. As a supply chain leader, your input into IT procurement will be crucial, and you must know enough about your company’s technology needs to discuss them with vendors. You’ll need to understand the relationship between ERP workflows and physical processes, for instance, to help prevent classic mistakes from being made, such as applying new technology to outdated, inefficient processes.

6. Understanding Cost-to-serve. If you understand the cost-to-serve concept and can apply it to your company’s supply chain activity, you’ll be able to identify unprofitable customers and products.

Supply chain leaders play a very active role in the profitability of their employing companies. If you’re running a supply chain operation, your decisions impact the costs involved in supplying your organization’s customers. You will have a huge advantage and the potential to shine as a leader if you can quantify how your supply chain leadership decisions affect your bottom line. For instance, too few companies focus on the real costs involved with serving customers.The result of this inattention is often a one-size-fits-all approach to service, inevitably leading to the over-servicing of some customers and the under-servicing of others. A single service offering can even impair profitability, perhaps creating a situation where logistics costs cause some sales to generate losses instead of profits.

7. Project Management Skills. Aside from flexibility, there are many other project-management skills that you’ll need as a supply chain leader. Of course, a lot depends on what leadership role you are in, but if you are headed to the top, you’ll probably hold several management positions on the way up, most of which will see you leading projects from time to time.

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