People matter creating results malaysia oct 14

PEOPLE MATTER People, Performance and Profit in the Supply Chain

Creating Results. !Why People Matter.

Darryl Judd l Global Chief Operating Officer A Presentation by:

Presented at the 3rd Global Logistics & Cargo Symposium Malaysia October 2014

Dynamic Shift changing the supply chain landscape forever

•  Structural Market Changes - Air to Ocean, Asia as a Domestic Economy

•  Changing Inventory Strategies •  Increasing Impact of Dynamic Manufacturing, Near

Shoring & FTA’s •  Changes in wealth distribution increasing the

importance of Emerging Markets

•  Cost pressures from inflation particularly salaries, land

Corporate Advisory l Executive Search l Logistics Academy

Future Prospects but Differing Business Model •  Global Trade to rise threefold by 2030

•  By 2030, 23% of the World’s Population will be in the USA, Australia and Europe

•  Middle-class to reach 5bn people by 2030; 3.5bn in the Asia-Pacific boosting private consumption

•  Industrial production in emerging markets tripled

in the last 20 years and triple again in the next 20 years

•  Jobless rates near all time lows in ASEAN Sources: PWC, Transport & Logistics 2030 Report / Airbus Global Market Forecast / IMF


4.9%

5.0%

5.1%

5.2%

5.3%

5.4%

5.5%

5.6%

2014 2015 2016

ASEAN Real GDP Growth

Growth in a Changing Environment is Fragile •  Depends on our ability to remain globally competitive as costs increase

•  Innovate ahead of customer demand

•  Monetary & Inflationary Controls

•  Increasing Business Productivity e.g. - Up-skilling labour force - Improving Leadership capabilities - Creating a larger pool of talent through Education & Training - Deploying Supply Chain Innovation & Technology for visibility and agility

•  Sustainability of all elements within business


Today’s Leadership Challenge is simple

With markets shifting, organisations need new ways to manage their customer value proposition, strategies, costs and most importantly their people


Think Smarter and Act With Purpose

•  Globalized Leadership in a supply chain world without borders

•  Closer collaboration with customers – better visibility / forecasting

•  Ahead of the curve in aligning supply chain capacity with demand and prepare for volatility

•  Better equip and skill our people to increase productivity •  Position Supply Chain as a Market Creator – opening

opportunities with innovation and solutions leadership


36% of employers Globally report talent shortages in 2014 – The highest percentage in 7 years.

”

”


Products and Process is important but People Are The Enablers


0% 10% 20% 30% 40% 50% 60%

Lower Employee Engagement/ Morale

Higher CompensaAon Costs

Reduced InnovaAon and CreaAvity

Increased Employee Turnover

Reduced CompeAAveness/ ProducAvity

Reduced Ability To Serve Client The issue of most concern for employers is how talent shortages undermine their ability to serve clients, and reduce productivity & competitiveness

”

”

Impact of talent shortages on organisations

•  Define Company Culture, Employer Brand & Identity

•  Keep Training & Development Fluid

•  Build An Agile Human Resources Architecture

•  Increase Workplace Diversity and Talent Pipelines

•  Develop Leadership 25%!of respondents with talent shortages are preparing to adopt new, alternaAve work models

47%!of companies are addressing talent shortages by adopAng new HR & people pracAces

23%!of respondents are searching for new talent sources, typically by recruiAng from untapped or under-‐tapped talent pools

No Silver Bullet can fix the challenge faced


Prioritize and develop a Leadership Pipeline with a focus on results and employ nurturers who will share knowledge


Actively encourage future leaders Building global champions extending their functional responsibilities to gain broader


Knowledge can empower a workforce Invest in global training programs, higher education and manage careers carefully


Attracting, recruiting and retaining individual leadership talent is imperative for success, so make this a key agenda item


Get smart with your compensation and benefits offering

•  Be market competitive

•  Reward for professional growth and performance

•  Creative approach to compete with the so called ‘more appealing’ sectors

•  Introduce non-financial incentives


8.3%

10.8% 11.0%

9.5%

5.7%

4.5%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

2015 Wage Increase Forecast

Attracting a diversity of talent and managing their future skills development is critical to right shaping your leadership team


Engage early and Engage often for tomorrows future leaders •  Understand the generation target – what

ticks…

•  Early and consistent engagement is critical

•  Adopt humanized technology – get savvy

•  Creative brand energy

•  Inspire – promote the potential advancement


The Leadership Commitment and Vision will win talent battle


•  Lead in Diversity Management

•  Attract Younger Talent & Encourage Elders to Stay

•  Invest in your future stars whilst Educating for the future

•  Blended work force with International Talent and Energize the Graduates

•  Build The Employer Brand

•  Refine Recruitment & Retention Practices

•  Smarter Compensation & Incentives

Logistics Executive Group Suite 32,3 Church Street #25-00 Samsung Hub Singapore 049483 Darryl Judd l Global Chief Operating Officer [email protected] www.LogisticsExecutive.com

Melbourne � Sydney � Brisbane � Singapore � Hong Kong � Shanghai Mumbai � Delhi � Chennai � Dubai � Ireland � London

Logistics Executive has studied workplace behavior and team dynamics in the Supply Chain and Logistics industry cross-culturally. For 15 years we have assisted multinational companies to develop people strategies, led talent attraction programs, defined and implemented business processes and provided expert consulting that has impacted organizations with positive business outcomes.