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1 The APICS Standard: Raising the Bar apics.org/youtube

Serving the Continuing Education Needs of Today’s Supply Chain Professionals

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1 © APICS Confidential and Proprietary

The APICS Standard: Raising the Bar

apics.org/youtube

Serving the Continuing

Education Needs of Today's

Supply Chain Professionals

Abe Eshkenazi, CSCP, CPA, CAE

Chief Executive Officer

June 13, 2016

The Growing Importance of Supply Chain

4 © APICS Confidential and Proprietary

Supply chain

starts

with people.

5 © APICS Confidential and Proprietary

The Importance of Supply Chain

Supply chains are becoming

Part of the corporate business model - as important to finance

and marketing as to production

Distinguished by the close collaboration with supply chain

partners

Driven by customers playing a more active role at every stage

Global, local and increasingly transparent

6 © APICS Confidential and Proprietary

Leaders Needed

Supply chain professionals will increasingly be leaders

in their corporations, but firms are struggling now to

acquire and develop high potential supply chain talent.

“It’s a different type of talent that we’re going

to need if we’re going to keep up with

the pace of change.”

-2015 APICS and MSU Beyond the Horizon Study, interview participant

7 © APICS Confidential and Proprietary

Global Trends

There are multiple factors that will deeply shape and effect the

future of supply chains. Global trends that will impact us include

Increasingly urban populations

Large populations of both young and elderly people

Elevated role of women in global society

Technological autonomy and intelligence

Exponential growth of data

Consumer demand for transparency

Speed of change

Rise of Africa

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The Rise of Africa

African nations have to shape their own visions of development

in the context of their historical experiences. These should

encompass the challenges and opportunities stemming from

their growing ties with China and India against a backdrop of

controversies over capitalism and development.

African development: Challenges and opportunities

Dr Sumit Roy

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The Rise of Africa

Since the industrial revolution, very few national economies

have been able to grow and accumulate wealth without the

contribution of a strong manufacturing sector.

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The Rise of Africa and Supply Chain

With high (and growing) numbers of individuals of working age, an

abundance of natural resources, and desirable geographic location,

Northern and Central Africa are attracting a good deal of attention in the

supply chain.

The interest in Africa is intense and companies are working with a

number of enabling partners to contribute to the growth of manufacturing

and distribution in Africa.

11 © APICS Confidential and Proprietary

The Rise of Africa and Supply Chain

However, workforce development is an imperative for government and

business leaders.

According to the United Nations Human Development Index, 38 out of 46

of the world’s lowest-ranking countries are in Africa.

Education must ramp up quickly to meet the demand for talent resulting

from rapid economic growth.

The Talent Gap and Employee Development

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GE Commercial: What’s the Matter with Owen? – “Hammer”

.youtube.com/watch?v=3xGoBlI_fdg

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(Mis)Perceptions Cost Us Workers

Source: 2015 Manufacturing Institute and Deloitte Public Perception of Manufacturing Study

Rankin

g o

f In

dustr

y P

refe

rence

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Challenges Related to Knowledge Workers

CSCO Report 2012, SCM World

There is a growing gap between job openings and the number

of workers qualified to fill them. The talent wars have begun.

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Employers Are Having Difficulty Filling Jobs

14 10

6 8

31

0

5

10

15

20

25

30

35

2011 2012 2013 2014 2015

South African Employers: Percent Having Difficulty

Source: 2015 ManpowerGroup Talent Shortage Survey

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Top 10 Jobs South African Employers Are Having Difficulty Filling

1. Skilled Trades

2. Engineers

3. Management / Executive (Management / Corporate)

4. Accounting & Finance Staff

5. Sales Representatives

6. Administrative Support Staff

7. Drivers

8. Technicians

9. Teachers

10. IT Personnel

All of these roles are relevant to supply chain

(including teachers), and many are directly related.

Source: 2015 ManpowerGroup Talent Shortage Survey

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Technical Expertise Is Not Enough

Supply chain subject matter experts still must have

solid technical expertise but also need...

Cross functional management skills

International exposure

Organizational support

19 © APICS Confidential and Proprietary

Talent and High-

Performing Supply

Chains, Gartner

2011

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Talent and Skill

Despite the potential of dramatically

improved processes and technology for

material handling and logistics systems in

the coming years, much of the work in the

industry will continue to be done by a

human workforce in the year 2025.

Moreover, other aspects of this

[technology], such as mass personalization,

will require levels of operational flexibility

that can only be handled by a skilled and

creative workforce.

U.S. Roadmap for Material Handling and Logistics, 2014

In other words, people will continue

to be vital to the industry in 2025.

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Mind the Manufacturing Gender Gap

Respondents ranked opportunities

for challenging and interesting

assignments, attractive pay and

work-life balance as the top three

most important priorities.

26 percent of respondents rated their

companies’ retention efforts as poor or

very poor.

Two-thirds of respondents indicated

standards of performance are not the

same for men and women.

84 percent of executives responding to

the skills gap survey agree there is a

talent shortage in U.S. manufacturing.

Integration of the Three Pillars: People, Process and Technologies

23 © APICS Confidential and Proprietary

Are You Asking the Right Question?

Alan Milliken

Senior Manager,

Supply Chain Capability Development

BASF

A: “More importantly, what if we don’t

educate them and they stay?”

Q: “What if we certify all these people

and they leave?”

24 © APICS Confidential and Proprietary

APICS Case Study: GE

With materials management a strategic

lever, GE aligns with APICS partner JPS

to develop a team that improves on-time

deliver by 30 points-the highest

performance in business unit history.

GE Oil & Gas improves customer service and enhances operational efficiency

26 © APICS Confidential and Proprietary

Spice maker transforms supply chain into a global function and strategic asset.

Created a collaborative, seamless,

end-to-end supply chain organization

Conducted APICS education and

applied SCOR model to align people,

process, organization and technology

Established global standards that

empowered employees

Achieved business goals and realized

significant and positive results in

process and continuous

cost improvements

Supply chain transformation

contributed to increased shareholder

value

APICS Case Study: McCormick

Career and Workforce Development Strategies

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High School

and Skilled

Labor

University/

Students

Early Career

Professionals

Mid-Level

Managers

Senior

Managers Executives

Support

Provide access

to content

Develop career

video/materials

Invest

Free student

membership

Special programs

Assurance of

Learning Exam

ASTL GLA

SCOR content for faculty

Strengthen

CPIM

Strengthen

CSCP

New! CLTD

Invest

SCOR-P

Advanced

management

university

collaborations

Invest

APICS SCC Exec

Summit

Research

collaborations

Education at Every Career Stage

29 © APICS Confidential and Proprietary

The APICS CLTD Program

CLTD topics include

– Logistics and Supply Chain Overview

– Capacity Planning and Demand Management

– Order Management

– Inventory and Warehouse Management

– Transportation

– Global Logistics Considerations

– Logistics Network Design

– Reverse Logistics and Sustainability

The APICS Certified in Logistics, Transportation and Distribution

(CLTD) program is coming in July!

APICS is preparing the logistics professionals of tomorrow.

30 © APICS Confidential and Proprietary

What You Can Do

If you’re already working in the supply chain field, continue to

grow your knowledge and skills.

Take advantage of professional development and training opportunities

offered at your company.

Participate in continuing education courses on soft skills or topic specific

courses.

Consider certification programs – they can boost your title as well as your

salary.

Join a professional association to gain access to important career

resources and to grow your network.

You’re in charge of your career development.

Make a plan and stay with it.

31 © APICS Confidential and Proprietary

How You Can Lead

If you’re managing a team, ensure you’re expanding their

expertise. It’s easier and faster to train existing talent than to

recruit new talent.

Offer your team opportunities to learn about different operational areas

and departmental functions

Encourage employees to collaborate with other areas of the business,

such as marketing and finance

Provide continuing education, certification and professional development

opportunities

Consider team training to foster collaboration

Supply chain leaders are not born. They’re made.

32 © APICS Confidential and Proprietary

People first.

Strategy second.

Jack Welch,

Former CEO of GE

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Technical Expertise is Not Enough, You Need Supply Chain Super Heroes

“… many participants sought what they deemed a

“super-human” combination of people who have

technical depth, business breadth, and the soft skills

to be a leader, influencer, and diplomat. Modern

supply chains call for deep subject matter expertise,

an integrated understanding of broader business

imperatives, and the ability to lead coworkers while

operating across countries and cultures.”

~ MIT Center for Transportation and Logistics Roundtable, October 2010

34 © APICS Confidential and Proprietary

Thank You