skills shortages in scm mr peter kilbourn 9 sept 2010.ppt · if these skills shortages go ... •...

Agenda

• Background on skills shortages in the industry

• Trends in industry, i.e. types of

skills/qualifications mostly required

• UJ’s Initiatives around partnerships with industry • UJ’s Initiatives around partnerships with industry

Transport Forum SIG 9 September 2010

What is a skills gap/scarce skills?

•Firstly, skills are understood to refer to both

qualifications and experience.

•Scarce skills, is defined to refer to occupations in

which there is “a scarcity of qualified and which there is “a scarcity of qualified and

experienced people, currently or anticipated in the

future, either (a) because such skilled people are

not available, or (b) because they are available but

do not meet employment criteria” (DOL, 2006).


The National Scarce Skills List

• Prepared by the Department of Labour

• Includes amongst many others (2008):

• Chief Executives, General Managers

• Specialist Managers

• Distribution and Production / Operations Managers

• Information and Communication Technology (ICT) Managers

• Air and Marine Transport Professionals • Air and Marine Transport Professionals

• Engineering Professionals

• Miscellaneous Education and Training Professionals

• Business and Systems Analysts, and Programmers

• Automobile, Bus and Rail Drivers

• Delivery Drivers

• Truck Drivers

• Store Persons


Is there a skills gap in SCM?

“We are not just short of people with skills, but of people

with the right skills... If these skills shortages go

unchecked, we just won't be able to compete. We won't

be able to work effectively within organisations to ensure

that functions work together seamlessly. We will not be

able to work effectively across organisations to ensure

that businesses collaborate for their own and the

common good.” (The 6th State of Logistics Survey for South Africa; 2009)


Is there a skills gap in SCM?

• The supplychainforesight study of 2008, found the

issue of inadequate skills is one of the most consistent

challenges experienced by the 409 companies

canvassed.

• "I don't think that it is a secret that we face a massive

skills crisis in our country, in particular; there is a skills crisis in our country, in particular; there is a serious skills shortage in the supply chain industry, not only in South Africa, but throughout the world.

There is demand for professional supply chain abilities in

every single market," Barloworld Logistics divisional

director John van Wyk. (Engineering News. 2008)


The SCM skills gap – a broad perspective

• The shortage of skilled workers is the biggest constraint

to business growth!" This is a quote from an international

survey that was recently conducted by accounting firm

Grant Thornton involving 7000 privately held

businesses in 36 economies across the globe.

• Another study on privately owned organisations in South • Another study on privately owned organisations in South

Africa, that was released by PricewaterhouseCoopers

(PwC) in 2009, found the following: “South Africa’s

private organisations are finding that skilled labour and

middle management are in short supply”.


The SCM skills gap – an international perspective

• The situation across Europe is the same.

• European Council for Global Supply Chain - council

members have highlighted ‘people organisation and

skills’ as number one of the top 12 drivers of change and

the number one priority response for the future success

of the supply chain, with a key topic chosen for a Paris of the supply chain, with a key topic chosen for a Paris

meeting being ‘Organising for Supply Chain’, focusing on

putting in place, developing and leveraging people skills.

(Allen G Waller)


What causes the skills gap?

• Increasing maturity/growth in the field

• A growing understanding of what the concept entails,

the methodology required for implementation and

control, and

• The value it brings to a company

• Formal organisational structures in SCM and • Formal organisational structures in SCM and

Logistics

• Growth in logistics/SCM outsourcing

• “The most outsourced business service globally is

logistics and this industry is still growing”. (The 6th

State of Logistics Survey for SA; 2009)


What is our experience at UJ?

• Consistent growth in student applications for

more than 10 years

• Employment opportunities for successful

students are above average in the faculty

• But:

• High level of ignorance about Logistics as a • High level of ignorance about Logistics as a

career at school level

• An aversion to maths

• Low throughput across universities


What is the problem?

• The problem starts with basic education.

• Angie Motshekga, Minister of Basic Education in

South Africa commented that “the performances of

learners in the gateway subjects of maths, physical

science and accounting remain cause for concern”.

African Business Review (July 5, 2010)

• Many young people are unemployed and untrained• Many young people are unemployed and untrained

• Of the 2.8 million South Africans between the ages of

18 and 24 who were (in 2007) not in employment,

education or training, two million (71%) had not

achieved Grade 12. Of these 0.5m (18%) had not

progressed beyond primary school.


What SCM skills are demanded?

• All 3 levels (Operational, Tactical, and Strategic level

skills)

• “When quizzed on the specifics of the skills shortages,

the main sample group identified the biggest shortage of

skills at a functional, operational supply chain level (64

percent), followed by supply chain management skills percent), followed by supply chain management skills

and finally skills to design and implement a supply chain

strategy, at 59 percent and 51 percent respectively”.

(supplychainforesight report 2008)


Skills for Logistics and Supply Chain Managers – Rahman & Young, 2008 (Alphabetical order)

1. Analytical skills

2. Ability to make decisions

3. Ability to plan

4. Ability to prioritise

5. Ability to see big picture

6. Benchmarking

7. Business ethics

8. Business process improvement

9. Computer skill

19. Distribution requirements planning

20. EDI/Bar coding

21. Facility location

22. Functional knowledge

23. Inventory management

24. Integration of information flow

25. ISO 14000 standards

26. IT skills

27. JIT skill


9. Computer skill

10. Communication skills – written and oral

11. Conflict management

12. Coordination skill

13. Creativity

14. Critical reasoning

15. Cross-functional coordination skills

16. Cross-functional awareness

17. Data base skills

18. Demand forecasting

27. JIT skill

28. Knowledge of environmental issues

29. Knowledge of latest technology

30. Knowledge of organisational culture

31. Knowledge of the industry

32. Leadership

33. Listening

34. Materials handling

35. Motivation

36. Negotiating skills

Skills for Logistics and Supply Chain Managers – Continued

37. Networking skill

38. Office equipment skill

39. Order processing

40. Outsourcing

41. Parts support

42. People skills

43. Postponement

44. Problem solving

45. Project management

55. Supply chain concept

56. Supply chain cost knowledge

57. Team orientation

58. Technological skills

59. Time management

60. Transport management

61. Transport regulation (knowledge)

62. Warehousing management


45. Project management

46. Purchasing

47. Quality management

48. Quantitative and statistical skills

49. Return goods handling

50. Reverse logistics

51. Salvage and scrap disposal

52. Software knowledge

53. Spreadsheet abilities

54. Statistical skills

Ten most important skills for logistics Managers - Rahman & Young, 2008


2. Supply Chain Awareness

3. Cross-functional awareness

4. Customer service

5. Supply chain cost


6. Ability to see big picture

7. Transport Management

8. Cross-functional coordination

9. Teamwork

10. Integration of information flow

Categorising of skills using expert’s opinion - Rahman & Young, 2008

• Logistics awareness (23)

• Logistics Analytical (12)

• Logistics Information technology (5)

• Environmental awareness (5)


Most important skills belonging to the Logistics Awareness Skill-Category- Rahman & Young, 2008

1. Supply chain concept

2. Supply chain cost

3. Ability to see big picture3. Ability to see big picture

4. Cross-functional coordination skill

5. Team orientation

6. Integrating information flow internally


Most important skills belonging to the Logistics Analytical Skill-Category- Rahman & Young, 2008


2. Transport management

3. Demand forecasting3. Demand forecasting

4. Distribution requirement planning

5. Warehousing management

6. Purchasing

7. Order processing


Most important skills belonging to the Logistics Information Technology Skill-Category- Rahman & Young, 2008

1. Statistical skill

2. Quantitative methods

3. Software knowledge3. Software knowledge

4. Spreadsheet abilities

5. Computation skill


Most important skills belonging to the Logistics Envirinmental Awareness Skill-Category- Rahman & Young, 2008

1. Knowledge of environmental issues

2. Reverse logistics

3. Return goods handling3. Return goods handling

4. ISO 14000 standards

5. Salvage and scrap disposal


But, the profession is changing rapidly

• That means the Education/Training provider has to constantly absorb new ideas

• Current driving factors in the industry

• Lean production

• Environmental regulations

• Economic instability on a global scale

• Compression of product life-cycles• Compression of product life-cycles

• Supply chain cost challenges

• Increased customer service requirements

• Commoditisation of products

• Product proliferation

• Rapid advances and accessibility of Information and communication technology

Industry objectives change from year to year – supplychain foresight 2010

What can we learn from this?

• A rapidly changing environment creates a need for

continuous learning

• Programme electives will have to be dynamic –

especially for executive level training

• Increased collaboration between universities, other

academic institutions, and industry is vital – also, it is an


academic institutions, and industry is vital – also, it is an

international trend

• Joint identification of initiatives

• Capacity building (on both sides)

• A continuous search for the optimal method of delivery is

required

What happens at UJ?

• The Department of Transport and Supply Chain

Management (DTSCM) offers a broad spectrum of

curricular and extra-curricular programmes in transport

and logistics management

• Has trained more than 45000 people through extra-

curricular programmes over the last 2½ decades


curricular programmes over the last 2½ decades

• Has recently initiated the extensive re-development of

the existing Mcom Business Management to a

qualification with specialisation opportunity in SCM

• Case study based teaching and problem solving skills

• International faculty to participate

• 3 –day structure

What happens at UJ?

• The DTSCM has partnered with a number of foreign universities for joint

development of new programmes, capacity building , research, and student

exchanges, e.g. University of Michigan (U.S) and University of Sydney

(Aus) (through the Institute of Transport and Logistics Studies)

• The DTSCM also assists other local universities in programme development

and capacity building

• Increased collaboration with industry:

• Advisory committees


• Advisory committees

• Customised training

• Contract research

• Contract lecturers from industry

• Guest lectures

• Bursaries and career days

• Problem solving projects (solving real world problems)

• Case studies

• Employment opportunities

Conclusion

The need for training and education in SCM and

logistics is big, urgent, complex and dynamic

and will require a concerted effort from service

providers and all stakeholders.


Thank You

skills shortages in scm mr peter kilbourn 9 sept 2010.ppt · if these skills shortages go ... •...

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