Case Sc Professionalsafdfadfafdafsdfasdasd

7/28/2019 Case Sc Professionalsafdfadfafdafsdfasdasd

1/32

AustralianSupply Chain Proessionals:

Competencies, Use o Technologiesand Future Challenges


2/32

The competitive environment

o the 21st Century continues to

intensiy with many businesses now

operating internationally. Managers

are becoming increasingly aware o

the challenges being presented by

globalisation, environmental concerns,

political threats and other health

and saety issues. Local businesses

are not immune, as they too ace

similar challenges, i not through

their global partners, through greater

competition, consumer awarenessand the rising cost o doing business.

Foreword

Foreword

2

In order to operate eciently and eectively, organisations

need to adopt global standards and integrate business

processes rom the end consumer through the retailers,

manuacturers and their suppliers, in order to provide

products, services and inormation that add value to

the ultimate customer. Many organisations have already

appointed or are in the process o appointing Supply Chain

and Logistics Executives who are being charged with the

task o supply chain integration. This requires a wide range

o strategies, technologies, standards and best practices

along the supply chain. In the wake o these initiativesmany economies are also acing a global skills shortage

o supply chain and technology savvy practitioners.

The dichotomy aced by industry is the aging pool o

supply chain experts and the increasing challenges in

global supply chain management. Given this situation,

this study sets out to establish a prole o our supply

chain and logistics executives in Australia, the breath o

their responsibilities and their experiences in this area.

The study also seeks to establish the skills set required

o todays supply chain practitioners which will help

ensure that the next crop o supply chain and logisticsgraduates will be up to the challenges o the proession.

How well we employ the technologies and systems

in todays supply chain and to what extent they have

been used, have also been identied in this study. These

ndings will be critical i todays Supply Chain Executives

are to tackle the major challenges expected over the

next three to ve years as identied in this study.

The research work done by the teams at the Australian

Supply Chain Management Research Unit, Monash

University and GS1 Australia, and supported by Ecient

Consumer Response Australasia and the Supply Chain andLogistics Association o Australia are to be congratulated.

Maria Palazzolo

CEO GS1 Australia


3/32

ResearchTeam

3

Research Team

Proessor Amrik Sohal

Amrik Sohal is a Proessor in theDepartment o Management at

Monash University and Associate

Dean (India Development) or

the Faculty o Business and

Economics. He is also the Director

o the Australian Supply Chain

Management Research Unit.

His research and teaching is in the

areas o operations and supply

chain management, technology

management and innovation/qualitymanagement. His proessional

contributions include presentations

at many industry conerences

and workshops as well a number

o consultancies. He is currently

President Elect o the Australian

and New Zealand Academy o

Management (President during 2009).

Dr Daniel Prajogo

Daniel Prajogo is a Senior Lecturerin the Department o Management,

Monash University where he is also

the Deputy Director o the Higher

Degree by Research program. His

primary research interests are in the

areas o operations and supply chain

management, quality management,

and innovation management. He has

been a regular presenter at national

and international conerences and

is currently engaged in a number o

research projects unded by industry

and the Australian government. His

publications have appeared in a

number o leading academic journals.

Mr Steven Pereira

Steven Pereira, Chie InormationOcer, has been with GS1 Australia

since August 1996. Stevens current

responsibilities involve Business

Systems, Standards & Emerging

Technologies and Education.

Steven sits on a number o tertiary

institutions industry advisory

committees, including Deakin

University, RMIT University and the

University o Western Sydney. Steven

is involved at a global level in the

standards development process

and is an international conerence

speaker. Steven has a Commerce

Degree rom the University o Western

Australia and is a member o the

Australian Institute o Management,

the Logistics Association o Australia

and an Associate o CPA Australia.

Ms Christine Alemao

Research assistance or this project

was provided by Ms Christine Alemao

who holds a Master o Psychology

degree. She has worked as an

Assistant HR Manager or a number

o years with Oracle FinancialServices Sotware Limited. Her

interests are in exploring the human

element in areas such as Supply

Chain and Human Resources.


4/32

Over the past 15 years the

Australian Supply Chain

Management Research

Unit (ASCMRU) at Monash

has been providing

research expertise in the

area o supply chain and

operations management,

quality and innovation

management, knowledge

management and

technology/inormation

management.

ASCMRU is ocused on research

that examines the undamental

principles o the supply chain network

to produce research outcomes as

well as strong practical advice or

specic industry sectors. The unit

investigates all aspects o the supply

chain rom sourcing to manuacture

to transportation and delivery in order

to understand the intricacies o the

supply chain, improve operationaleciencies, save costs and ultimately

ull customer demands.

ASCMRU researchers have a

strong track record o attracting

external research unding,

publications in leading journals,

supervision o research students

and organising international

conerences and workshops.

AustralianSupplyChain

4

GS1 Australia

GS1 Australia is an industry supplychain organisation and the only

organisation authorised by GS1

Global to administer the GS1

System in this country. A not-or-

prot organisation with more than

16,000 businesses as members, GS1

Australia concentrates on helping

businesses to work smarter and more

eciently using the GS1 System.

GS1 Australia is part o a worldwide

network that supports companiesin areas such as supply chain

eciency, traceability, inventory

management, point o sale and

collaborative planning. The GS1

System is used by retailers, brand

owners and their trading partners in

more than 145 countries. It consists

o global standards or numbering,

bar codes, electronic messaging,

data synchronisation and radio

requency identication (RFID).

Australian Supply Chain Management

Research Unit (ASCMRU)


5/32

AustralianSupplyChain

ManagementResearchUnit

5

ECR Australasia

Ecient Consumer Response (ECR)is a business concept aimed at

better satisying consumer needs,

through businesses and trading

partners working together.

In doing so, ECR best practices

will deliver superior business

results by reducing costs at all

stages throughout the value

chain, achieving eciency and

streamlined processes. ECR best

practices can deliver improvedrange, consumer value, sales,

service and convenience oerings.

This in turn will lead to greater

satisaction o consumer needs.

ECR Australasia refects a commitment

to take costs out o the grocery supply

chain and better satisy consumer

demands through the adoption

o worlds best practice. In an

increasingly global ood and grocery

industry and a retail environment

subject to rapid change, the uture or

Australian and New Zealand suppliers,

retailers and wholesalers depends on

increased eciencies, reduced costs

and added value or consumers.

Supply Chain & LogisticsAssociation o Australia

The Supply Chain and Logistics

Association o Australia (SCLAA)

is Australias largest association

or supply chain and logistics

proessionals and practitioners. It is

a true member-based, not-or-prot

association whose proceeds are

channelled into member benets. The

SCLAA has established divisions in all

states providing active networking

and educational events programs

to meet the needs o its members.

The Mission o the SCLAA is to serve

and advance the interests o supply

chain and logistics proessionals

and practitioners in Australia.

Contact or urtherinormation

Proessor Amrik Sohal

Australia Supply Chain Management

Research Unit, Faculty o Business

and Economics

Monash University

P.O. Box 197

Cauleld East VIC

Australia 3145

T: (03) 9903 2033

F: (03) 9903 2979

E: [email protected]

Steven Pereira

Chie Inormation Ocer

GS1 Australia

Locked Bag 2

Mt Waverley VIC

Australia 3149

T: (03) 9550 3435

F: (03) 9558 9551

E: [email protected]


6/32

Cont ent s

6

1. EXECUTIVE SUMMARY

1.1 Introduction

1.2 Summary o Major Findings

1.3 Conclusion

2. INTRODUCTION

3. RESEARCH METHODOLOGY

3.1 Company Profle

3.1.1 Industry Sector3.1.2 Ownership o Companies

3.1.3 Size o Companies (Number o employees)

3.1.4 Sales Volume and Market Coverage

3.1.5 Strategic Position o Respondent Company along the Supply Chain

3.2 Respondent Profle

3.2.1 Respondents Position in the Company

3.2.2 Reporting Structure

3.2.3 Work experience in supply chain management and Years o Service in the Company

3.2.4 Number o Direct Reports

3.2.5 Highest Academic Qualications

4. KEY FINDINGS

4.1 Areas o Responsibility4.1.1 Logistics/Distribution Activities and Business Analysis and Planning Activities

4.1.2 Areas o Responsibility Comparison with Earlier Research

4.2 Competencies and Skills or Supply Chain Proessionals

4.2.1 Communication and Teamwork Skills

4.2.2 Technology Sk ills

4.2.3 Initiative and Enterprise Skills

4.2.4 Compliance and Legal Knowledge

4.2.5 Supply Chain Competencies and Small/Medium/Large Enterprises

4.2.6 Supply Chain Competencies and Skills Comparison with Earlier Research

4.3 Supply Chain Technologies

4.3.1 Internally/Externally Focussed Supply Chain Technologies

4.3.2 Technologies used by Small/Medium/Large Enterprises and Supply Chain Stakeholders

4.3.3 Supply Chain Technologies Comparison with Earlier Research

4.4 Supply Chain Perormance Measurement

4.4.1 Supply Chain Perormance Measurement

4.4.2 Supply Chain Perormance Measurement Comparison with Earlier Research

4.5 Future Challenges or Supply Chain

4.5.1 Impact o Environment

4.5.2 Impact o Globalisation

4.5.3 Supply Chain Integration

4.5.4 Supply Chain Training and Development

4.5.5 Impact o Inormation Technology

4.5.6 Supply Chain Responsiveness/Agility

4.5.7 Future Challenges or Supply Chain and Small/Medium/Large Enterprises

4.5.8 Future Challenges or Supply Chain and Comparison with Earlier Research

5. CONCLUSIONS

6. REFERENCES

LIST OF FIGURES

Figure 1: Industry Sectors

Figure 2: Type o Ownership o

Respondent Companies

Figure 3: Organisational Size

Figure 4: Average Annual Sales

($million) Over the Period 2004-2007

Figure 5: Percentage o sales in

dierent markets (2004-2007)

Figure 6: Strategic Position

along the Supply Chain

Figure 7: Respondents Position

in the Company

Figure 8: Reporting Line

Figure 9: Years o Service in the Company

Figure 10: Work Experience in Supply Chain

Figure 11: Number o Employees

Directly Supervised

Figure 12: Highest Academic QualicationFigure 13(a): Areas o responsibility

Logistics and Distribution Activities

Figure 13(b): Areas o responsibility

Analysis and Planning Activities

Figure 14(a): Communication

and Teamwork Sk ills

Figure 14(b): Technology Skills

Figure 14(c): Initiative and Enterprise Skills

Figure 14(d): Compliance

and Legal Knowledge

Figure 15(a): Internally FocussedSupply Chain Technologies

Figure 15(b): Externally Focussed

Supply Chain Technologies

Figure 16: Supply Chain

Perormance Measurement

Figure 17(a): Impact o Environment

Figure 17(b): Impact o Globalisation

Figure 17(c): Supply Chain Integration

Figure 17(d): Supply Chain

Training and Development

Figure 17(e): Impact oInormation Technology

Figure 17(): Supply Chain

Responsiveness/Agility

Contents


7/32

1.1 INTRODUCTION

This study was conducted by Monash

University in collaboration with

GS1 Australia, the Supply Chain and

Logistics Association o Australia(SCLAA), and Ecient Consumer

Response (ECR) Australasia. The aim

o this study was to take a snapshot

o the Australian industry pertaining

to a number o major issues such as:

the roles o supply chain managers

or personnel, the skills and abilities

required or supply chain managers,

the level o adoption o e-business

in supply chain processes, supply

chain perormance measurement,

and the uture challenges osupply chain management. This

was achieved by examining the

perceptions o Australian supply

chain proessionals with regard to

the above mentioned issues.

1.2 SUMMARY OFMAJOR FINDINGS

The major ndings were:

A large portion (20%) o the

respondents reported that

they hold a TAFE diploma.

With regard to areas o

responsibility, logistics anddistribution activities were

given precedence over business

analysis and planning activities.

Sot skills such as communication

and teamwork skills were

identied by the respondents

as the most important skills or

supply chain proessionals to

eectively manage supply chains.

Intra-company technologies

were used more widely bythe respondents than inter-

company technologies

Signicant dierences exist

between small and large enterprises

in their perception o the

competencies and skills required

or supply chain proessionals.

Intra-company technologies

were used to a greater extent in

large organisations as compared

to small organisations.

Key perormance measures

identied by the respondents

were more operational rather

than strategic in nature.

Australian supply chain

proessionals have not yet ully

recognised the strategic importance

o supply chain management in

the overall success o the network

o customers and suppliers

Recognition that strategic/

managerial competenciesand skills were o increasing

importance or supply chain

proessionals in the uture

O the 31 potential challenges

listed, none were identied as

absolutely critical or supply chain

management. However, challenges

relating to transportation costs

(due to geographical distance

and petrol supply/price) were

identied by the respondents as

having the highest impact on

supply chains in the uture.

Related to lean manuacturing

concepts, environmental (green)

impacts, complexity o global

supply chain channels, greater

demand on supply chain visibility

and real time data, were among

other perceived challenges

Signicant dierences between

small and large organisations

in their perception o uture

challenges or supply chains

1.3 CONCLUSION

This study highlights the increasing

need to develop the role o supply

chain managers into a more strategic

unction. It also underlines the

competencies and skills required

or supply chain proessionals to

remain competitive and equipped

to manage the challenges or

supply chain in the uture.

ExecutiveSummary

7

Executive Summary


8/32

Research Methodology

ResearchMet hodol ogy

8

2. INTRODUCTION

Supply chain management has

emerged as one o the primary actors

in determining the competitiveness

o business organisations. In todays

competitive environment, businesses

have realised that the competition

is no longer dependent solely

on the capabilities o individualbusinesses but on the capability o

a tightly integrated supply chain.


experienced signicant and rapid

changes in recent years. These

changes are driven by several actors,

including business environment,

globalisation, technological

advances, particularly internet-based

systems, and increased demands

or perormance. These changes

require businesses to revisit the

roles and responsibilities as well

as the skills and competencies o

their supply chain proessionals

(managers or personnel). There is a

need to expand the role o the supply

chain unction in organisations to

now include supplier coordination,

supplier development, supplier

market research, cost analysis,

sourcing strategy ormulation,

benchmarking, make or buy decision,and supplier capability analysis. In

essence, businesses must recognise

the strategic role o supply chain

management and its importance

in the ability o businesses to

remain competitive, and, thereore,

they need to elevate the role o

supply chain management rom

being considered as merely an

administrative and operational

unction to a strategic one.

The emerging issue in supply

chain is the use o inormation and

communication technology (ICT)

which has increasingly impacted

on supply chain management,

particularly in the process o

collaboration between supply

chain partners. ICT has made

possible the sharing o large

amounts o inormation along the

supply chain which has enabledreal-time collaboration and

integration between supply chain

partners, providing organisations

with orward visibility, improving

production planning, inventory

management and distribution.

The changes in the business

environment have also resulted in a

signicant impact on supply chain

management. The rise in uel costs

and the recent pressure (rom amarket and regulatory perspective)

or adopting green operations will

have major consequences or all

businesses along the supply chain.

One o the potential eects o this

new policy is that it will increase

the cost o doing business which

will undermine the competitiveness

o businesses. This stance will be

detrimental to Australian industry

since it will lead rms to either

close their local operations orrelocate to other countries with less

pressure on environmental issues.

This study was designed to address

the issues raised above. The study

was conducted by the Australian

Supply Chain Management Research

Unit in the Faculty o Business and

Economics at Monash University. It

was nancially supported by GS1

Australia. Additional support was

provided by the Supply Chain and

Logistics Association o Australia

(SCLAA), and Ecient Consumer

Response (ECR) Australasia. The study

provides a snapshot o the Australian

industry pertaining to the ollowing:

The roles o and the skills and1. capabilities required or supply

chain proessionals to eectively

manage supply chains;

The level o adoption o2.

various technologies in

supply chain processes;

Supply chain perormance3.

measurement; and

The uture challenges o4.

supply chain management.

3. RESEARCHMETHODOLOGY

The research was conducted by

means o a postal questionnaire

survey which was developed in

consultation with GS1 Australia. The

questionnaire was designed based

on a number o sources including

academic journal articles, public

media, and GS1s competencies

training curriculum. Prior to the

survey, the questionnaire was

reviewed by the representatives o

GS1 Australia, SCLAA, and ECR as well

as a ew o the rms managers, with

the intent to assess its readability,

clarity, and easibility. The targeted

respondents were supply chain

proessionals who are members o

GS1 Australia, the Supply Chain and

Logistics Association o Australia

(SCLAA), and Ecient Consumer

Response (ECR) Australasia. 921

surveys were mailed out, and 148

responses were received, which

constitutes a 16% response rate.


9/32

ResearchMethodology

9

3.1 COMPANY PROFILE

This section presents details o

the sample used in the study,

relating to company background

inormation such as the industry

sectors sampled, as well as size,

sales revenue and strategic position

o the respondent companies.

3.1.1 INDUSTRY SECTOR

As shown in Figure 1 below,

respondents to the survey

represented a number o dierent

industry sectors. These can be roughly

divided into two groups namely

production and services.

The largest production group

consists o manuacturing

companies, inclusive o ood and

beverage, accounting or 47% o

the sample, while construction

and agriculture businesses

account or 5% o the sample.

The largest sector making up

the non-production or services

group is wholesale and retail trade,

accounting or 21% o the sample.The remaining sample comprises

o medical and healthcare (7%),

inormation technology and

telecommunications/electronics (6%)

and transport and distribution (5%).

The industry sectors represented

in the study sample mirrors

the GS1 Australia membership,

where approximately 52%

are rom manuacturing and

31% rom wholesale/retail.

3.1.2 OWNERSHIP

OF COMPANIES

The respondent companies have

been grouped according to their

ownership (Figure 2). O the 148

companies that responded to the

survey, almost one-hal (46%) are

wholly domestically owned and

43% are wholly oreign owned. The

remaining 11% o the sample have

varying degrees o mixed ownership.

Figure 1: Industry Sectors

Figure 2: Type o Ownership o Respondent Companies



10/32

I nd

st r

S

pport

0

ResearchMet hodol ogy

0

3.1.3 SIZE OFCOMPANIES (NUMBEROF EMPLOYEES)

The distribution o data with respect

to the number o people employed

in the responding companies (see

Figure 3) reveals a roughly even

spread across small-, medium- and

large-size companies. One-third

o the sample is represented by

companies employing less than 50

people while another third employs

more than 500 people. Within the

large-size category, 25% employ

more than 1,000 people. Combined,

small and medium enterprises (SMEs)

make up two-thirds o the sample.

The sample is refective o the

GS1 Australia membership prole

where the vast majority o membersall in the SME category.

3.1.4 SALES VOLUMEAND MARKET COVERAGE

Respondents were asked to

indicate their companys average

annual sales or the nancial period

2004-2007 and the proportion

o these sales represented in

local, national and internationalmarkets. The results are presented

in Figures 4 and 5 respectively.

One-hal o the respondents reported

their average annual sales over this

period as less than $100 million

(Figure 4). O the remaining sample,

around an equal proportion reported

their average annual sales to be

between the range $100-$249 million

(14%), $250-$999 million (14%) and

$1,000 million or more (16%).

As shown in Figure 5, a large

proportion o the respondents

did not provide a response to the

question relating to sales in dierent

markets. Almost one-hal (47%) o

the respondents indicated low annual

sales revenues (20% or less o their

total sales) rom international markets.

By contrast, almost one-third o the

respondents indicated that more than

80% o their total annual sales wererom national markets. The results

presented in Figure 5 suggest limited

penetration o international market

but considerable national activity.

This provides a great opportunity or

Australian companies to be engaged

globally and ensure long-term

survival. The limited international

engagement may explain the low

level o supply chain activity as

discussed later in this report.

Figure 3: Organisational Size Figure 4: Average Annual Sales($million) over the Period 2004-2007


Figure 5: Percentage o Sales in Diferent Markets (2004-2007)


11/32

ResearchMethodology

11

3.1.5 STRATEGICPOSITION OFRESPONDENTCOMPANY ALONGTHE SUPPLY CHAIN

Figure 6 shows the respondent

companies position along the supply

chain. End product manuacturers andtheir immediate suppliers (rst-tier

suppliers) account or just over one-

hal o the sample while wholesalers

and distributors account or nearly

one-third o the sample. Retailers (7%)

and transport/logistics providers (6%)

make up the remainder o the sample.

3.2 RESPONDENTPROFILE

The ollowing section presents

ndings in relation to the respondents

position in the company, education

and employment experience

and reporting structure.

3.2.1 RESPONDENTSPOSITION IN THECOMPANY

As shown in Figure 7, just over

one-th (21%) o the respondents

to the survey represented top

management (CEO/GM/MD/

Supply Chain Director) with the

remainder represented by middlemanagement. Almost 60% o the

respondents had direct responsibility

or supply chain management with

9% holding the position o Supply

Chain Director and 49% having the

title o Supply Chain Manager.

Figure 6: Strategic Position along the Supply Chain

A signicant proportion o the sample

was represented by Production/

Operation Managers and Quality

Managers (12%) and Accounting/

Finance and Inormation System

Managers (9%). This provides an

appropriate sample or this study

with respondents having both

knowledge o strategic goals o

their companies and understanding

o supply chain activities.

Figure 7: Respondents Position in the Company


12/32


13/32

ResearchMethodology

13

3.2.4 NUMBER OFDIRECT REPORTS

The respondents were asked to

indicate how many people they

had directly reporting to them.

The results, presented in Figure 11,

indicate that almost three-quarters

o the respondents (71%) have

up to 10 employees reporting tothem with another 10% indicating

that they have between 11 and

19 direct reports. These gures

suggest that respondents may have

many unctional responsibilities and

perhaps are responsible or both

administrative and operational roles.

3.2.5 HIGHESTACADEMICQUALIFICATIONS

Figure 12 shows the highest

academic qualications obtained by

the respondents. Almost one-hal

(46%) o the respondents reported

that they hold a Bachelors degree.

This gure is slightly higher than thatreported in a survey o supply chain

proessionals conducted in 2005

(Sohal et al., 2006) in which 41% o the

respondents reported their highest

qualication as a Bachelors degree.

Another 14% o the respondents

reported that they hold a Masters

degree. In comparison with the earlier

study mentioned above, 26% o the

respondents reported holding a post-

graduate qualication. It is interesting

to note that a large proportion o

respondents (20%) reported that

they hold a TAFE diploma, suggesting

the relevance and extensive usage

o such vocational training courses.

A previous survey conducted by

DNetto and Sohal (1999) revealed

that 78.8% o production managers

had completed a diploma or

degree, indicating that several

proessionals in this area have

worked their way up rom junior

positions, without any specialised

ormal degree in supply chain.

Figure 11: Number o Employees Directly Supervised

Figure 12: Highest Academic Qualication


14/32

Key Findings

This section o the report

presents the results o the

current study. All results

are presented graphically

and each graph

depicts mean scores.

4.1 AREAS OFRESPONSIBILITY

Respondents to the survey were

asked to indicate the extent to which

they have responsibility or a number

o dierent areas related to supply

chain management. As shown in

Figures 13 (a) and (b), responseswere provided on a 5-point Likert

scale ranging rom 1 = not at all

to 5 = very large extent. Means

were calculated rom the responses

provided and these are presented

in the gures in descending order.

4.1.1 LOGISTICS/DISTRIBUTIONACTIVITIES ANDBUSINESS ANALYSIS ANDPLANNING ACTIVITIES

The top our areas o responsibility

identied relate to what is

typically regarded as logistics/distribution activities. Respondents

indicated that they were

responsible to a large extent or

warehousing, inventory control and

distribution (see Figure 13(a)).

Supply Chain / Business analysis and

planning activities such as quality

management (including control

and improvement) and production

planning and scheduling were

identied as important areas oresponsibility within the supply

chain rom an organisational,

tactical perspective (Figure 13(b)).

Figure 13(a): Areas o Responsibilty - Logistics and Distribution Activities

I nd

st r

S

pport

KeyFi ndi ngs

4


15/32

KeyFindings

15

Figure 13(b): Areas o Responsibilty -Analysis and Planning Activities

Figure 14(a): Communication and Teamwork Skills

Figure 14(b): Technology Skills


16/32

I d

t

S

t

6

KeyFi ndi ngs

6

Key Findings

4.1.2 AREAS OFRESPONSIBILITY COMPARISON WITHEARLIER RESEARCH

Inventory control and warehousing

continue to be a key ocus in

modern supply chains as they are

critical to the success or ailure omany supply chains. A study o

international supply chains by Baker

(2007) indicated that inventory is

used as a strategy to minimise supply

chain risks, in order to manage

transportation delays and random

demand variations. It is important

to analyse inventory reduction

strategies and risks associated with

dierent supply chain strategies, in

order to recognise the trade-os

between inventory and other supplychain elements such as purchasing,

manuacturing and transport. Based

on this, the role o warehouses in

supply chain may include a mix o

elements such as inventory holding,

order consolidation, cross-docking

and postponement activities.

4.2 COMPETENCIESAND SKILLS FOR SUPPLYCHAIN PROFESSIONALS

The competencies and skills

examined below are primarily

based on the GS1 Australias skills

requirements matrix or supply

chain management. This was

developed by a consortium o

academic and industry partners

under the GS1 Australia Supply

Chain Management Futures Forum.

In this section, respondents

were asked to indicate the level

o importance o a number o

dierent skills and competencies or

managing supply chain activities.

Responses were presented on

a 5-point Likert scale where 1 =

not signicant and 5 = critical.

4.2.1 COMMUNICATIONAND TEAMWORK SKILLS

Figure 14(a) shows the means

calculated or the three dierent

sot skills included in the survey or

managing supply chain activities.

The ability to work eectively

with individuals and groups/teams cross culturally, intra

and inter organisationally was

considered the most important

communication and team work

skill with a mean score o 4.39,

ollowed by the ability to manage

relationships in diverse contexts

cross culturally, intra and inter

organisationally (4.23 mean score).

These skills were identied as the

most important and demonstrate

the respondents perception o the

requirements or the successul

integration o dierent businesses

along the supply chain, both

domestically and globally.

4.2.2 TECHNOLOGYSKILLS

The respondents conerred a high

degree o importance to technology

skills such as the ability to make

use o numerical techniques or

decision making (e.g. orecasting and

scheduling) and project management

skills and ability to lead major projectswith mean scores o 4.10 and 4.09

respectively. Other skills such as the

ability to solve complex and novel

SCM problems (e.g. issues o tracking

and tracing, product authentication)

and understanding o the

interconnection o SCM with other

disciplines (e.g. inormation systems,

industrial engineering and human

resources) were given medium to

high weightage (Figure 14(b)).

The results suggest that supply chain

proessionals require knowledge

o a broad range o technologies.

Without this knowledge they are

unlikely to achieve a high level o

integration along the supply chain.


17/32

KeyFindings

17

4.2.3 INITIATIVE ANDENTERPRISE SKILLS

In the initiative and enterprise skill

category, respondents identied

the ability to manage risks in supply

chain and their associated issues

as the most important skill with a

mean score o 4.11 (Figure 14 (c)).

Other skills such as the ability tomanage change within the local

context and the ability to develop

and implement long term business

strategies were considered to be o

high importance with mean scores o

4.00 and 3.93 respectively. Advancing

SCM knowledge through proessional

engagement was assigned a medium

level o importance. A similar nding

was brought to light in a survey

conducted by McKinsey (2008),

wherein executives in operationalroles perceived a higher increase in

the degree o supply chain risk over

the past ve years, indicating the

rising challenges in supply chain

management due to a number

o actors discussed previously

(see the Introduction section).

Based on current thinking in supply

chain management, these gures

suggest that Australian supply chain

proessionals have not yet ullyrecognised the strategic importance

o supply chain management in

the overall success o the network

o customers and suppliers.

4.2.4 COMPLIANCE ANDLEGAL KNOWLEDGE

As shown in Figure 14(d), the

respondents conerred a medium

level o importance to the

understanding o contractual

and legal / regulatory aspects

o the business, the awareness

o ethical issues at the nationaland international level and the

respect or diversity, social justice

principles, the environment and

corporate governance with mean

scores ranging rom 3.51 to 3.77.

In many organisations these

activities are the responsibility o

specialists with a legal background

and may explain the lower response

obtained in this survey. However,

we believe that supply chainproessionals o the uture should be

reasonably conversant in this area.

4.2.5 SUPPLY CHAINCOMPETENCIES ANDSMALL/MEDIUM/LARGE ENTERPRISES

A comparative analysis o the

competencies and skills or supply

chain proessionals across small,

medium and large enterprises

indicate signicant dierences

between small and large enterprises

with regard to the importance o a

ew competencies. They include:

Understanding o the1.

interconnection o SCM with

other disciplines (e.g. inormation

systems, industrial engineering

and human resources) with mean

scores o 3.55 and 4.03 or small

and large businesses respectively.

Ability to manage change within2.

the local context (means scores

o 3.74 and 4.28 or small and

large businesses respectively).

Ability to develop and3.

implement long-term business

strategies (mean scores o 3.62

and 4.18 or small and large

businesses respectively).

Ability to apply continuous4.

improvement and customer

ocus concepts (mean scores

o 3.79 and 4.13 or small and

large businesses respectively).


18/32

I d

t

S

t

8

KeyFi ndi ngs

8

Key Findings

Figure 14(c): Initiative and Enterprise Skills

Figure 14(d): Compliance and Legal Knowledge


19/32

KeyFindings

19

4.2.6 SUPPLY CHAINCOMPETENCIES ANDSKILLS COMPARISONWITH EARLIER STUDIES

These results tie in with the literature

on the skills and competency

requirements or supply chain

proessionals conducted by

Murphy and Poist (1994, 1998). The

authors proposed that senior-level

logisticians required three kinds

o skills, namely business skills,

logistics skills and management

skills. The ndings o their survey

o executive search rms, logistics

practitioners and logistic educators

indicated that management skills

were the most important, ollowed

by logistics skills and business skills.

Gammelgaard and Larsons (2001)

research added another layer into

the skill requirements o logistics

proessionals. They put orward

a three-actor model o SCM skill

areas or SCM practitioners, namely

interpersonal/managerial basic skills,

quantitative/technological skills and

SCM core skills. In addition, they also

emphasised that logisticians need to

possess good communications skills,to be able to communicate across

unctions and organisations in order

to promote and coordinate SCM, as

well as to manage the upward and

downward communication within

the organisation. It is noteworthy

that good management skills

appear to be o critical importance

or supply chain proessionals.

Another contribution in this area

was the study conducted byMangan and Christopher (2005),

who adopted a triangular research

approach to attain the views

o three dierent stakeholders

namely providers o education and

training, students, participants on

programmes and corporates that

purchase these programmes, to

determine the competencies/skills

and key knowledge areas required by

logistics and supply chain managers.

The key competencies and skillsthat emerged rom the research

were analytical, interpersonal,

leadership, change management

and project management.

Changes in business environment,

increased globalisation, outsourcing

and technological advances have

necessitated the evolution o supply

chain management proessionals

rom an administrative unction to a

strategic one. Giunipero and Pearcys

(2000) study, conducted in the US,

illustrated critical skills required

o supply chain proessionals.

The ve most important skillsidentied were interpersonal

communication, ability to make

decisions, ability to work in teams,

negotiations and customer ocus.

A subsequent research on large

US-based businesses conducted by

Giunipero et al. (2006) demonstrated

the progression towards a strategic

skill set in supply chain management.

The authors recognised ve skill areas

namely team building skills, strategicplanning skills, communication

skills, technical skills and broader

nancial skills. This corroborates the

current research ndings on the

competencies and skills or supply

chain proessionals in Australia.

In summary, the above literature

validates the ndings o our

study that strategic/managerial

competencies and skills are o

increasing importance or supply

chain proessionals in the uture.


20/32

Key Findings

KeyFi ndi ngs

0

4.3 SUPPLY CHAINTECHNOLOGIES

The technologies analysed below

encompass a broad range o

technologies available to supply

chain management. The respondents

were asked to report on the usage

o a number o internally ocussed

and externally ocussed supply chaintechnologies in their company.

Responses were provided on a

5-point Likert scale ranging rom

1 = not at all to 5 = very large

extent. The results are presented

in Figures 15 (a) and 15 (b).

4.3.1 INTERNALLY/EXTERNALLY FOCUSSEDSUPPLY CHAINTECHNOLOGIES

The major technologies that were

used to some extent are primarily

internally ocussed technologies and

include warehouse management

system, data capture systems (e.g.,

bar code scanning) and enterprise

resource planning (ERP) with

mean scores o 3.47, 3.27 and 3.14

respectively (see Figure 15(a)). These

ndings are quite surprising given

the act that data capture is at the

heart o any technologically based

supply chain integration initiative. In

the externally ocussed technology

category, electronic data interchange

(EDI)/eMessaging was reportedlyused to some extent with a mean

score o 3.40 (see Figure 15 (b)).

In contrast, mean scores or

technologies like global positioning

system, radio requency identication

(RFID), online reverse auction/e-

auction, online bidding/tendering

and public e-marketplaces (e.g.,

global healthcare exchange)

were very low, indicating low

adoption o these technologies.

4.3.2 TECHNOLOGIESUSED BY SMALL/MEDIUM/LARGEENTERPRISES ANDSUPPLY CHAIN ENTITIES

A urther level o analysis reveals that

there are signicant dierences across

small, medium and large enterprises

in their adoption o supply chaintechnologies. Technologies such as

enterprise resource planning (ERP),

advance planning and optimisation

(APO), data capture systems (e.g.,

bar code scanning) and warehouse

management system are used to a

greater extent in large organisations

as compared to small organisations.

Similarly there are signicant

dierences between medium and

large organisations in their usage o

technologies such as online reverseauction/eAuction and advanced

planning and optimatisation.

Drilling down urther reveals a

signicant dierence in the usage o

scan packing applications between

end product manuacturers and

downstream entities with mean

scores o 2.40 and 3.15 respectively.

Figure 15(a): Internally ocused Supply Chain Technologies


21/32


22/32

Key Findings

KeyFi ndi ngs

2

4.4 SUPPLY CHAINPERFORMANCEMEASUREMENT

The perormance measures

examined in this section represent

a broad range o quantitative and

qualitative measures. Respondents

were asked to indicate the

importance o a number o supplychain perormance metrics in the

operations o their company. The

responses were presented on a

5-point Likert scale ranging rom

1= not important to 5 = critical.

4.4.1 SUPPLY CHAINPERFORMANCEMEASURES

As illustrated in Figure 16, the key

perormance metrics identied

by the respondents are more

operational rather than strategic in

nature. This, according to Lambert

and Pohlen (2001), is largely due toa disconnect between the strategies

o an organisation and supply chain,

as a result o which managers are

driven by operational measures.

Perormance measures that are

identied as very important and

which are customer ocused include:

service level (mean score 4.38)

delivered in ull on time (DIFOT) in

specication (mean score 4.21)

transportation and distribution

costs (mean score 4.08)

Likewise measures such as

delivery speed, inventory turnover

and procurement lead time are

considered important with an

average mean o 3.89. In contrastperormance measures such as

cash-to-cash cycle and procurement

costs are given lesser importance.

Figure 16: Supply Chain Perormance Measurement


23/32

KeyFindings

23

4.4.2 SUPPLY CHAINPERFORMANCEMEASUREMENT COMPARISON WITHEARLIER RESEARCH

Due to the complexity o supply

chain, it oten becomes dicult

to collate and categorise metricsor evaluating the supply chain

perormance (Shepherd and Gunter,

2006). Previous research has grouped

supply chain perormance measures

based on dierent criteria such

as a) quantitative and qualitative

measures like resources, output and

fexibility as identied by Beamon

(1999), b) cost and non-cost measures

and c) their strategic, tactical and

operational ocus (Gunasekaran et al.,

2001). In yet another study, supplychain perormance is measured by

ve dimensions namely reliability,

responsiveness, fexibility, cost and

eciency indicators (Stephens, 2001).

At the other end o the spectrum lie

criticisms against the perormance

measurement systems in supply

chain management, or reasons such

as its lack o connection with the

strategic goals o the organisation, its

ocus on cost as a primary measure

(Beamon, 1999), a lack o a balanced

approach between nancial and

non-nancial measures, a lack o

system thinking and loss o supply

chain context (Chan, 2003).

It is essential or both managers

and employees to take custody

o and be actively involved in the

design o a simpler and more

eective perormance measurement

system. It is also important to

realise that not every measure can

be a Key Perormance Measure. A

combination o strategic perormance

measurements, managerialperormance measurements

and operational perormance

measurements is needed and

should be linked to shareholders

and customers expectations. The

uture o perormance measurement

in supply chain needs to deliberate

certain areas o change such as the

shit o economic hub or world

manuacturing and trade to non-

western parts o the world, which in

turn will require measuring o cultural

interactions in supply networks.

Secondly the ability to monitor

and predict changes in the worldsclimate and its impact on both local

and international trade will require

dierent types o perormance

measurement in the uture. Lastly,

rising price levels due to declining

reserves o ossil uels will require

organisations to address aggregate

supply network costs through a

comparison o nancial perormance

measurement and agreement on

measurement standards across

organisations (Morgan 2007).


24/32

Key Findings

KeyFi ndi ngs

4

4.5 FUTURECHALLENGES FORSUPPLY CHAINS

In this section, respondents were

asked to assess the level o uture

challenges or supply chains over

the next three to ve years. A total o

31 potential challenges were listed

in the questionnaire. The responseswere presented on a 5-point Likert

scale ranging rom 1 =None to 5

=Critical. The results are presented

under six major headings namely

environment, globalisation, supply

chain integration, training and

development, inormation technology

and supply chain responsiveness

on the uture o supply chain. None

o the challenges were identied as

absolutely critical or the uture.

4.5.1 IMPACT OFENVIRONMENT

As shown in Figure 17 (a),

transportation costs (due to

geographical distance and petrol

supply/price) is identied by the

respondents to have the highest

impact on supply chains in the

uture with a mean score o 4.28.A similar nding was highlighted

in a recent survey conducted by

McKinsey (2008), wherein senior

executives rom around the globe

credited the rising prices o energy

to have an important impact on

their supply chain strategies.

Other environmental issues relating to

the management o scarce resources,

such as lean concepts in supply chain,

environmental (green) impact oproducts and processes and limited

natural resources are perceived by

the respondents to have medium

degrees o impact with mean scores

o 3.67, 3.65 and 3.47 respectively.

4.5.2 IMPACT OFGLOBALISATION

Eects o globalisation such as global

supply and distribution channels

and complexity o the structure o

supply networks and distribution

are identied by the respondents

to have a medium to high degree

o impact on supply chains in theuture. In contrast, eects such as

a shit o centre o gravity o supply

chain activities to China and India

and challenges in international trade,

including legislation and taris are

recognised to have a medium level

o impact on supply chains with an

average mean o 3.16 (Figure 17 (b)).


25/32

KeyFindings

25

Figure 17 (a): Impact o Environment

Figure 17 (b): Impact o Globalisation


26/32

GS1Servi cesBrochure

6

Key Findings

KeyFi ndi ngs

6

4.5.3 SUPPLY CHAININTEGRATION

Challenges relating to greater visibility

requirements o supply chain and

integrating processes with supply

chain partners are identied to have a

medium to high impact on the uture

o supply chains, with mean scores

o 3.86 and 3.74 respectively (Figure17(c)). The low usage o various

supply chain technologies indicate

that supply chain proessionals may

not have yet ully recognised the

major challenges o integration.

In contrast, shit in outsourcing

supply chain activities rom 3PL to

4PL was identied as having the

lowest level o impact amongst all

the challenges listed in the survey.

4.5.4 SUPPLY CHAINTRAINING ANDDEVELOPMENT


become very complex due to a

number o challenges that aect

business in general. The respondents

to this survey perceived supply

chain education, training and

careers development and skills

shortage and aging population as

two areas to have a medium degree

o impact on supply chains in the

uture, with mean scores o 3.67 and

3.52 respectively (Figure 17 (d)).

This is urther validated by a recent

study (McKinsey, 2008), wherein

senior executives rom around

the global identied the diculty

o attracting and retaining talent

as a key challenge in managingsupply chain talent globally.

4.5.5 IMPACT OFINFORMATIONTECHNOLOGY

Respondents identied inormation

technologies such as real-time

operating data to reduce time and

cost and technological adoptive

capabilities to have a medium to

high level o impact on supply chains

in the uture with mean scores o

3.84 and 3.50 respectively (Figure

17 (e)). These results indicate that

the strategic benets o inormation

and communication technologies

may not be ully recognised.

Figure 17 (c): Supply Chain Integration


27/32

KeyFindings

27

4.5.6 SUPPLY CHAIN RESPONSIVENESS/AGILITY

An agile supply chain is required or companies to stand above their competitors. As shown in Figure 17 (), top areas

o concern identied by the respondents to have a medium impact on supply chains in the uture related to measuring

supply chain perormance (qualitative and quantitative metrics), responsiveness and agility to ragmentation and variety

o customers needs and lead time compression (end-to-end supply chain pipeline) with an average mean o 3.76.

Figure 17 (b): Impact o Globalisation

Figure 17 (d): Supply Chain Training and Development

Figure 17 (e): Impact o Inormation Technology

Figure 17 ( ): Supply Chain Responsiveness/Agility


28/32


8

Key Findings

KeyFi ndi ngs

8

4.5.7 FUTURECHALLENGES FORSUPPLY CHAINS VSSMALL/MEDIUM/LARGE ENTERPRISES

Another level o analysis reveals

that there are signicant dierences

between small and largeorganisations in their perception

o uture challenges or supply

chains. Concerns related to closed-

loop supply chain, integrating

organisational unctions through

supply chain processes, greater

visibility requirements o supply

chain and skills shortage and

aging population were identied

by large organisations to have

a signicantly higher impact on

the uture o supply chains ascompared to small organisations.

Similarly there were noticeable

dierences between wholly

domestically owned and wholly

oreign owned companies in their

perception o uture challenges

or supply chains, especially

with regard to global supply

and distribution channels and

volatile demands and markets.

4.5.8 FUTURECHALLENGES FORSUPPLY CHAINS COMPARISON WITHEARLIER RESEARCH

A study conducted in 1995 by

Gilmour et al. revealed that logistics

managers in Australia perceived twomain areas, namely: 1) The impact o

technology on supply chain activities

and relationships and 2) the impact

o environmental regulations and

requirements as two key uture

concerns or logistics management.

Other areas such as global orientation

and interorganisational relationships

were given lesser weightage.

However, today the domain o

concern has moved away rom the

internal operations o logistics andnow ocuses on the importance

o strategic potential o logistics.

As businesses continue to operate

in a global economic environment,

pursue outsourcing and expand their

international operations, Ballou (2007)

envisaged major challenges that are

likely to conront SCM in the uture.

He advised that a cost reduction

strategy will be as important as a

revenue generation strategy or the

supply chain, to reduce costs and

increase eciency. Furthermore

cross-boundary management will

assume paramount importance

since the supply chain is composed

o multiple and vertically related but

legally separate businesses. He also

believed that supply chain education

and training will need to incorporate

additional managerial aspects like

skills in psychology and organisational

behaviour, in order to operate inthe supply chain environment.

Intense global competition orces

companies to ocus on their core

competencies, competition in the

uture will not be between individual

companies but between competing

supply chains. Businesses will

have to be highly proessional and

reactive in order to stand above

their competitors. As a result o

dwindling natural resources and

increasing pollution levels, therewill be an increasing need or

technology to assist in curtailing

energy consumption and produce

environmentally riendly products.

In addition, maintaining a dynamic

and collaborative relationship

with partners will be some o the

challenges or the management

o supply chains or the uture

(Jain and Benyouce 2008).


29/32

Conclusions

29

The results o this study highlight that supply chain proessionals in Australia

are ocussed, or the larger part, on logistics and distribution-related activities.

However, to stay ahead o the competition, the role o supply chain proessionals

need to progress rom administration to strategic unction.

Conclusions

Key competencies and skills perceived by supply chain

proessionals or the successul integration o dierent

businesses along the supply chain are communication

and teamwork skills. The results also suggest that

supply chain proessionals require knowledge o a

broad range o technologies, both intra-company and

inter-company technologies, to realise the strategic

importance o supply chain management in the long-

term success o organisations. In addition, respondents

identied operational perormance measures as more

important than strategic perormance measureswhich could be because o a lack o linkage between

organisational strategies and supply chain strategies.

Finally, the results on uture challenges or supply

chain indicate that environmental issues relating to the

management o scarce resources have a signicant impact

on supply chain strategies. Supply chain proessionals

will need to posses a diverse set o skills to tackle the

varied perceived challenges expected in the uture.


30/32


0

Reerences

Ref erences

0

Baker, Peter (2007)

An exploratory ramework o the

role o inventory and warehousing in

international supply chain

The International Journal o Logistics

Management, Vol. 18 No.1, pp. 64-80.

Ballou, Ronald. H. (2007)

The evolution and uture o logistics

and supply chain managementEuropean Business Review,

Vol. 19 No. 4, pp. 332-348.

Beamon, B.M. (1999)

Measuring supply chain perormance

International Journal o Operations

& Production Management,

Vol. 19 No. 3, pp. 275-292.

Chae, Bongsug, Yen, HsiuJu.Rebecca, and Sheu, Chwen (2005)

Inormation Technology and Supply

Chain Collaboration:

Moderating Eects o Existing

Relationships Between Partners

IEEE Transactions on

Engineering Management,

Vol. 52 No.4, pp. 440-448.

Chan, F.T.S. (2003), Perormance

Measurement in a Supply Chain,

The International Journal o

Advanced Manuacturing

Technology, Vol. 21, pp. 534-548.

Dawson, Alex (2002), Supply

chain technology, Work Study,

Vol. 51 No. 4, pp. 191-196.

DNetto, Brian and Sohal,

Amrik. S. (1999), Changes in

the production managers job:

past, present and uture trends,



Vol. 19 No. 2, pp. 157-181.

Gammelgaard, B. and Larson,

P. (2001), Logistics skills andcompetencies or supply chain

management, Journal o Business

Logistics, Vol. 22 No. 2, pp. 27-50.

Gilmour, P., Driva, H. and

Hunt, R.A. (1995)

Future directions or logistics in

Australia, International Journal o

Physical Distribution & Logistics

Management, Vol. 25 No. 3, pp. 24-32.

Giunipero, L.C., Handeld, R.B.

and Eltantawy R. (2006)

Supply managements evolution:

key skill sets or the supply manager

o the uture



Vol.26 No.7, pp. 822-844.

Giunipero, L.C. andPearcy, D.H. (2000)

World-class purchasing skills:

an empirical investigation

Journal o Supply Chain Management,

Vol. 36 No. 4, pp. 4-15.

Green, Forrest. B. (2001)

Managing the unmanageable:

integrating the supply chain with new

developments in sotware

Supply Chain Management:An International Journal,

Vol. 6 No. 5, pp. 202-211.

Gunasekaran, A., Patel, C. and

Tirtiroglu, E. (2001)

Perormance measures and metrics

in a supply chain environment



Vol. 21 No. 1/2, pp. 71-87.


31/32


32/32

Head Ofce

Axxess Corporate ParkUnit 100/45 Gilby Rd

Mt Waverley VIC 3149

Locked Bag 2

Mt Waverley VIC 3149

T +61 3 9558 9559

F +61 3 9558 9551

Sydney Ofce

Lakes Business Park

Building 4B, 2-4 Lord St

Botany NSW 2019

Locked Bag 7002

Botany NSW 1455

T +61 2 9700 0933

F +61 2 9700 0820

National Number: 1300 366 033

ABN: 67 005 529 920

Documents

Case Sc Professionalsafdfadfafdafsdfasdasd