To CSCP or not to CSCP in your career?

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Guest blog from Andrew Hill CSCP

I did not have anything to prove my competencies to the broader market and had no experience to demonstrate that I could apply my skillset in different industries and contexts.

Like many entering the supply chain profession in the early 2000’s, my entry into the profession was not by design but by taking advantage of an opportunity to shift focus within my career.  Through 13 years of experience at Brightstar, some great mentorship and exposure to international operations, I gained a base of knowledge of supply chain fundamentals in the Telecommunications industry and progressed into senior leadership positions.

When I was faced with the loss of a major contract in the local business and a global restructure, it became clear that my next challenge would not be at Brightstar.  Considering next steps, I saw two challenges that I needed to overcome in order to progress my career:

  1. I had no educational qualifications relevant to my career experience.
  2. I had broad experience working with clients in a single industry, working for a single company.

Considering these from the hiring manager’s perspective, I did not have anything to prove my competencies to the broader market and had no experience to demonstrate that I could apply my skillset in different industries and contexts.

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I addressed these challenges by pursuing CSCP certification. Having worked across several functional areas from: demand planning; retail allocation and merchandising; to supply planning, I saw this qualification as a great fit to broaden my knowledge across supply chain and prepare for future leadership roles encompassing the whole of supply chain.

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I chose the self-directed learning approach to learning, as this allowed me flexibility to study in my own time.  The combination of online and physical learning materials allowed the convenience to learn anywhere, anytime and online quizzes provided instant feedback on my understanding – allowing effective revision to revisit the concepts I needed to review.

While independent online learning fit well for my circumstances, classroom-based options are available for those who prefer a more structured learning experience and to receive feedback from an experienced instructor.

The CSCP program provided me with a solid foundation across a whole of supply chain curriculum, addressing areas where I had not had previous exposure, as well as providing fresh best-practice perspectives in areas where I initially felt I was stronger.

Having completed the CSCP program, I strongly believe that this qualification will provide a great foundation to further my supply chain career and am looking forward to using the knowledge gained through this program in my next role!

For any members wanting to know more about my experience in completing CSCP, please feel free to send questions through the comments section or to connect with me via LinkedIn.

ASCI Online Certification Review Classes for CSCP commence in the Winter Term in July. Purchase your Learning System in advance to ensure you make an informed decision about self studying, like Andrew Hill, or a hybrid solution of self study and online classes. Geta quote today at enquries@asci.org.au or subscribe to our regular updates on pricing and scheduling here. 

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Andrew Hill CSCP 

 

Six Essential Steps to Building Trust in Remote Teams

Guest blog from Marie-Claire Ross, Trustologie

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Transitioning to managing a remote team when your team is normally co-located requires a steep learning curve for both team leaders and team members.  Throw in the COVID-19 crisis and high levels of anxiety and trust levels in the team can come crashing down if not managed correctly.

Whenever there is change and uncertainty, employees will naturally withhold expending too much energy into a team, until it feels safe to do so.  The antidote is trust.

After all, when you don’t have trust, it’s like walking through sludge.  Everything takes a long time to get done. Miscommunication and misunderstandings become rife requiring multiple meetings to sort out differences – slowing down decision-making and action.  Blame increases and avoiding accountability resulting in more conflict.

Continuing to boost your teams trust levels is critical, while everyone is learning the ropes.  This is trickier to do remotely because repairing and maintaining trust is much easier face-to-face.  To ensure team performance doesn’t drop precipitously requires the team leader, and team members, to be willing to not only change how they interact, but also their underlying mindsets.

That’s because humans have this odd tendency to only believe something is true if they can see it.  In a work environment, leaders only think team members are working if they can seethem work.

Today, team leaders have to cast aside this limiting belief that has literally stopped remote working from really taking off in the past.  Now, we’re all in this interesting workplace experiment where leaders have no choice but to let go of the reins and trust that people are getting work done.  This requires leaders to stop basing people’s performance on whether they’re seated at their desk from 9-5.  The truly liberating and empowering benefit of working from home is that people can adjust their work schedule to fit in with their lives.  As long as they can attend important meetings and produce the work required, the set times people work are irrelevant.

Pivoting from measuring time at work to delivering outcomes takes time.  Particularly for more mature leaders, who have been conditioned since school to work during set times.  Usually the tendency is to micromanage when people aren’t visible – sending an unintentional message to employees that they’re not trusted.  The result is employees will overwork to demonstrate their contribution.  And during this anxious time, this only compounds stress levels.

The good news is that this can be avoided if leaders are self-aware and have the right tools.  Visibility can be improved through using project management software that makes progress highly visible to all.  While team members need to step up and modify how they work together.

Learning any new skill this takes time.  After all, it’s a bit like moving a team from playing netball to football.  All the behaviours, mindsets, interactions and communication styles all need to change.  And it’s common to make mistakes.

To keep trust levels optimised, there are two elements leaders to focus on in equal amounts.  Otherwise, you risk being strong in one area and not the other, creating minimal improvement.  These elements are:

  1. Building trust with each individual in the team and
  2. Fostering trust between team members.

Counter intuitively; leaders need to spend more time structuring communication and relationship building between team members than when working separately.

Let’s go through the steps to do this using our SUCCEeD Together Trust Framework. This is based on six trust drivers that make it easier to leaders to identify and understand trust issues.

Support – Leaders who care, get the most out of their people.  Support underpins all of the other trust drivers and is more critical to remote teams than co-located ones.  Essentially, humans don’t trust people who don’t care about them.  So leaders need to do more work to ensure that team members feel supported by everyone in the team.

This is so critical because distributed teams have limited opportunities to spontaneously interact in hallways and food areas, which naturally bonds people together.

According to the Building Workplace Trust Study by Interaction Associates, the main way virtual workers wanted their leaders to build trust was to convene periodic face-face meetings (40%).  Of course, during the pandemic this is impossible.  But for teams that have each previously met in person, building trust remotely is easier.  But you can’t take it for granted.

If you’re a team leader, there are two areas that you need to focus on to improve support:

  1. Foster Visibility – This is on three levels. The first one is ensuring that you share as much information as possible.  It can be easy to forget to share making people feel left out.  Make it a general rule to be as transparent as possible, in order to provide the right context for people.  Share meeting notes, send regular updates and ensure all tasks and expectations are clearly documented.  The second level is making sure you’re accessible.  In a workplace, it’s important for leaders to walk the floor and speak to people daily.  Of course, it’s impossible to do this virtually.  To get around it, schedule the same time everyday when people can call you and get an immediate response.  Another example is to let employees know that if they mark their email as a high priority you will respond to it that day.  Finally, make sure everyone has their webcam on in meetings.  Video meetings encourage stronger connection between team members than phone calls.
  2. Help Team Members Understand each Other– Remote teams are less likely to recover from team members who are not trusting or trustworthy. Creating opportunities for people to learn about each other outside of work is important. Make sure that you schedule social time before or after a meeting to allow people to talk about their personal lives.  You can even have virtual coffee or lunches, where people chat over meals.  If your organisation is big enough, consider have a Slack channel where people can find others in the organisation that share the same interests such as knitting or photography.

United to Solve Customer Problems – We trust people who are similar to us.  In a team, you have lots of different people thrown together.  Unite everyone by regularly aligning people to how the work solves customer problems.  On an individual level, connect how each person’s contribution brings value to the team and organisation.  In team meeting, regularly share customer success stories, customer feedback and challenges.

Clarity of Thinking and CommunicationHumans need certainty and communication is all about reducing ambiguity.  Without it, we tend to not trust a situation.  This trust driver requires leaders to spend time clearly thinking and planning how they are going to provide employees with the right information to do their job.

According to the Building Workplace Trust Study by Interaction Associates, there were three things that virtual workers required from their team leaders:

  1. Reveal their thinking about important issues
  2. Remind team members of their common purpose
  3. Create clear working agreements.

To do this requires spending time one on one with people and convening together as a team.

With each individual, make sure you:

  • Discuss what success (including quality) looks like for the team and how their tasks connect to that.
  • Work with them to create their own goals that are tied to the team’s overarching goal (and encourage each team member to share their goals at team meetings).
  • Clearly articulate how they need to communicate progress with you. For example, do they need to send you a summary email of work done at the end of the week or would you prefer a daily phone call?
  • Explain their role, responsibilities, and your expectations. Encourage them to repeat back to you what they believe them to be, so you can check for accuracy and understanding.

For the team, you’ll want to ensure you have regular meetings, in order to co-ordinate team schedules and progress updates.

  • Ensure each team member talks about their progress to help everyone understand each person’s contribution. Make each individual responsible for gathering this information and presenting it.  This is important because we only trust people who are competent at their job. Encouraging each member to prove their competency will help others trust them.
  • Weekly check-ins to discuss what people are working on, what’s keeping them stuck and what is or isn’tworking. If you’re team is new to remote work, implement daily check-ins

Candour – You can’t fix problems, if people aren’t willing to talk about them. Ensuring team members feel safe to talk about issues is one of the defining factors of a high performance team. Unfortunately, conflict can go unresolved because it’s easy to agree in an online meeting.

Improving candour involves the team leader modeling the right behaviours that enable people to speak up.  Allow people to challenge you and respond by listening and asking curious questions. Give positive verbal feedback for those brave enough to express issues and concerns.  If your team does not naturally talk about issues, ask in meetings: Who has a different point of view on this issue?  Consider asking people by name to articulate their support or concerns.

Empowered to GrowYou can’t grow a company unless the people within it are growing.  You want to make sure that learning is safe and it’s a journey that you’re all on together.

Set aside time to learn jointly.  These can either be formal learning (eg: learning how to read a profit and loss statement) right through to ensuring that people are learning from each other.  Don’t forget to do training because you’re remote.

Encourage project wrap-ups to share lessons learned.  And also encourage team members to provide virtual presentations that you can record it, and tag, so that it is easily searchable.

DependabilityAt the heart of trusting others is being able to rely on people.  In a workplace team, we need to feel that others will make good on their promises and do the right thing.  This requires ensuring that each team member understands all of the interdependencies of the role.  The job of the leader is to provide a holistic understanding of the interactions between all the moving parts and ensure everyone is accountable.  Check in with team members regularly about any bottlenecks that are potentially stopping team members from delivering on goals.

Powering Great Remote Teams

Great remote teams thrive in a culture of trust.  And it requires team leaders that are conscious of building trust into their team interactions, actions and communication.

And it’s a skill that is going to more valued in the supply chain market once we are in the brand new world on the other side of this pandemic.  While we don’t know what the future will look like, it’s pretty clear that leaders who micromanage, resist change and find it difficult to rally their people won’t be tolerated.  Low trust leadership slow things down creating unnecessary problems that we can no longer endure in a fast paced world.

The payoff of high trust leaders is extensive.  According to Interaction Associates, virtual workers tend to report a significantly higher level of trust in their organisation than their non-virtual workers.  And the benefits can be quite staggering – the same research study found that organisations that have high trust have 2.5 times the revenue generation of low trust organisations.

Authentic leadership is built on trust.  The more people trust their leader, and each other, the more they will take risks and adapt keeping their organisation alive.  In these difficult times, organisations that can adapt quickly will be more likely to survive.

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Marie-Claire Ross is the chief corporate catalyst at Trustologie.  She is a speaker, author and consultant focused on helping CEOs and leadership teams put the right processes in place to empower employees to speak up about issues, challenge each other, and share information.

If you would like a complimentary Remote Team Trust Cheat Sheet, that can help you build trust both one on one and within your teams, go to https://trustologie.com.au/tips-for-managing-remote-teams/

 

 

 

 

 

 

Upskilling Supply Chain Professionals for a Sustainable Future

By ASCM CEO Abe Eshkenazi, CSCP, CPA, CAE

This week, I attended the GreenBiz 20 conference, which enables sustainability-focused professionals to explore business trends and develop recommendations for better organizational accountability and reporting. Those of us who participated in the supply chain track identified a number of tactics for aligning sustainability goals with supply chain activities. Two key strategies were enhanced cross-training and ongoing professional development.

Indeed, as global supply chains contend with extreme social, economic and ecological change, investing in our people becomes ever-more crucial. As World Economic Forum (WEF) President Børge Brende writes, “Valuing human capital not only serves to equip individuals with the knowledge and skills to respond to systemic shifts, it also empowers them to take part in creating a more equal, inclusive and sustainable world.”

According to the WEF’s Future of Jobs Report, 75 million jobs in 20 major economies will be displaced by 2022. Meanwhile, as many as 133 million new roles will emerge to meet the demands of this ongoing transformation.

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These points are underpinned by PwC’s 23rd Annual Global CEO Survey, which reveals the opinions of about 1,600 chief executives from 83 countries. Two central themes that surfaced from the research were upskilling and climate change.

According to the report, the key forces driving the upskilling imperative include automation, less availability of talent, reduced mobility of skilled labor and the aging workforce. “One reality is clear,” the report states, “increases in automation, changes in demographics and new regulations will make it much harder for organisations to attract and retain the skilled talent they need to keep pace with the speed of technological change. They will have to grow their own future workforce.”

Importantly, the CEOs who have embraced upskilling report benefits including stronger corporate culture and employee engagement, greater ability to attract and retain workers, heightened levels of innovation, and enhanced productivity.

“Our current approach can’t continue,” Siemens U.S. CEO Barbara Humpton told PwC. “We don’t have nearly enough qualified applicants to hire because of the technical knowledge required. So we’re going to be training a lot of non-engineers to do jobs engineers would have done in the past.”

The CEOs surveyed also recognize the risk and opportunity of climate change, noting that related initiatives can lead to significant new product and service opportunities, as well as reputational advantages and financial incentives. A recent CNN article validates these findings, reporting that asset-management superpower BlackRock is putting sustainability “at the center of its approach to investing.” The firm currently oversees $7 trillion in investments, but soon will abandon any holdings considered to be a sustainability risk.

“Awareness is rapidly changing, and I believe we are on the edge of a fundamental reshaping of finance,” CEO Larry Fink stated in his January 2020 letter to CEOs.

The potential of our people

Today’s investments in talent set our supply chain organizations on an equal, inclusive and sustainable path to the future. At ASCM, we are here to support you in this effort, with a wide array of professional development programs, including APICS certifications and a body of knowledge that has been the global standard in supply chain learning and development for more than 60 years.

Companies around the world recognize the APICS Certified in Production and Inventory Management; Certified Supply Chain Professional; and Certified in Logistics, Transportation and Distribution designations. These credentials offer forward-looking, transformational education that will position your employees for ongoing success. Learn more about how you can cultivate and support your workforce with this essential learning and development.

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Seek Out These 10 Qualities for Ongoing Career Success

By ASCM CEO Abe Eshkenazi, CSCP, CPA, CAE

Do you know which skills are most vital to your professional future? More importantly, do you possess them?

According to the new World Economic Forum (WEF) report, “The Future of Jobs,” the top 10 proficiencies and workforce strategies for 2020 and beyond are

  1. complex problem-solving
  2. critical thinking
  3. creativity
  4. people management
  5. coordinating with others
  6. emotional intelligence
  7. judgement and decision-making
  8. service orientation
  9. negotiation
  10. cognitive flexibility.

These findings were derived from chief human resources and strategy officers at leading global employers. The executives were asked about current shifts in business and what they mean for employment, skills and recruitment across industries and geographies.

“By 2020, the Fourth Industrial Revolution will have brought us advanced robotics and autonomous transport, artificial intelligence (AI) and machine learning, advanced materials, biotechnology and genomics,” says WEF senior writer Alex Gray. “These developments will transform the way we live and the way we work. Some jobs will disappear, others will grow, and jobs that don’t even exist today will become commonplace.”

Although AI tackles many challenges that people cannot, machines are less likely to decipher complicated puzzles that are not clearly defined or span multiple industries. This is why complex problem-solving tops the WEF list. Likewise, critical thinking is a strictly human capability that enables us to process, visualize and make connections in a world of ambiguity and nuance.

With the constant influx of new technologies, it’s no wonder that creativity is among the top three skills. “Robots may help us get to where we want to be faster, but they can’t be as creative as humans,” Gray explains, adding that negotiation and cognitive flexibility are at the bottom of the list because machines are increasingly making our decisions for us. In fact, 45% of WEF survey respondents believe AI will sit on company boards of directors by 2026.

“The future workforce will need to align its skillset to keep pace,” Gray writes. “Change won’t wait for us: Business leaders, educators and governments all need to be proactive in upskilling and retraining.”

The next five years

Something I found particularly interesting while reading the WEF report was the comparison between today’s top 10 and the list from just five years ago. While many skills were fairly comparable, others shifted dramatically (creativity). Some appeared for the first time (emotional intelligence and cognitive flexibility), and some fell off the list altogether (quality control and active listening).

In ASCM’s 2019 Supply Chain Salary and Career Survey Report, 82% of respondents said they are likely to remain in the field for the next five years. As these people continue on their professional journeys, I can’t help but wonder what competences the supply chain careers of the future will demand of them. Indeed, our report revealed that job stability is strong — with about 75% of respondents either remaining in their current positions or being promoted last year — but what must supply chain professionals do to keep on this positive trajectory?

ASCM will explore these questions and many more with our 2020 Supply Chain Salary and Career Survey Report. Based on the findings, we will continue to revise and update our content to ensure you have all of the latest skills that employers are seeking. I invite you to add your perspectives as we collect this important data in order to better understand, inform and advance the global supply chain community. Take the survey here before January 31.

Abe Eshkenazi will give a keynote address at MEGATRANS, Melbourne on 1 April 2020 as a special host to ASCI. To register, visit: https://www.megatrans.com.au

Is Blockchain the Remedy to Health Care Logistics Issues?

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By ASCM CEO Abe Eshkenazi, CSCP, CPA, CAE

Increasingly, pharmaceutical companies are putting blockchain to the test in order to track and trace the drugs they manufacture and ship. In fact, according to Healthcare Weekly, blockchain is “getting massive attention” in health care, with 40 percent of industry executives reporting that it is one of their top five priorities.

Blockchain, a decentralized network that shares information with participants in real time, has clear potential to transform and advance health care logistics, transportation and distribution. “The technology offers a potential solution to a number of challenges,” write J. Mark Waxman, Kyle Faget and Ben Daniels for Medical Economics. “The ability of blockchain to track and store data chronologically across a peer-to-peer network makes the technology particularly well suited to solve for the traceability requirements imposed by the Drug Supply Chain Security Act. In addition, blockchain is uniquely secure, which could reduce common issues in drug supply, such as drug counterfeiting.”

A recent Cointelegraph article shares how one company is working to achieve this pharmaceutical supply chain precision. Blockchain startup MediConnect offers a solution that will enable tracking and managing of prescription medication through the supply chain while preventing misuse.

Author Ana Alexandre writes that, earlier this year, the Ugandan government partnered with MediConnect to trace counterfeit drugs within the country. “The blockchain-based platform enables the recording of prescription medication, thus identifying counterfeit drugs and preventing their distribution in the pharmaceutical supply chain,” she says, adding that the potential of blockchain in health care is also recognized by the United Arab Emirates’ Ministry of Health and Prevention, which launched a blockchain system for recording and sharing health care data.

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Arm yourself with knowledge

One of the most interesting aspects of blockchain is that it requires no trust from users but delivers trustworthy transactional data. As a result, supply chains around the world are benefiting from a whole new level of transparency into the status and location of their goods.

As Ron Crabtree, CIRM, SCOR-P, explains: “The opportunities for logistics, transportation and distribution companies are truly endless, as the often painful process of making sure everything is done right throughout a value stream becomes much less stressful and error-prone. Indeed, many experts agree that blockchains are generating a less expensive, reliable way to know the status of a transaction.”

One way to ensure that you have the latest industry-leading skills and knowledge is by becoming Certified in Logistics, Transportation and Distribution (CLTD). This APICS designation will help you understand and maximize new supply chain technologies, trends and solutions. The CLTD program gives you everything you need to effectively demonstrate in-depth expertise of essential concepts in order to streamline operations, boost your organisation’s bottom line and set you apart from your peers.

According to APICS Asia Pacific facilitator Thomas Vandenbogaerde in an exclusive podcast interview with ASCI Lounge, how they compete and how they can keep their customers by being better in their distribution and wider supply chain.

Contact APICS Premier Channel Partner Australasian Supply Chain Institute for details on the CLTD certification today or visit our website or email enquiries@asci.org.au

 

ASCI as Professional Accreditation Body

Extending an invitation to all Industry Peak Bodies in the Supply Chain

 

ASCI has positioned itself as the Professional Accreditation Body for the supply chain industry. In this capacity, it has developed a Professional Accreditation Scheme, in line with the criteria set by the Professional Standards Authority (PSA), which oversees the legislation for lawyers, accountants, etc.

Although ASCI has not yet obtained legislation for supply chain as a legislated profession, we are following the exact process in the expectation that we will one day be ready to seek formal legislation.

In doing so, the ASCI Professional Accreditation Scheme, in its current form, is the only one of its kind that is based on the PSA guidelines. To distinguish this from the offerings of other organisations, often also referred to as “Professional Bodies”, we need to understand the distinction between the various professional bodies in our industry. The term “Professional Body” is often used by Industry Peak Bodies in their reference to the fact that they serve the “profession”. They do indeed, but not as an accreditation body, rather an Industry Peak Body. They most often offer certification programs, rather than a professional accreditation scheme. Certification programs are not to be confused with a Professional Accreditation Scheme.

Here is the difference:

“Certification”, a formal process of assessing that an individual is qualified in terms of particular knowledge or skills. It requires the candidate to study a particular learning set and write an exam on this set of knowledge in order to obtain certification.

“Accreditation” which, as in the case of lawyers, accountants, engineers, etc provides independent recognition of achievements and maintenance of the exact standards required to join the community of professional supply chain professionals and practitioners.

Professionals and practitioners registered under the professional accreditation scheme, are recognised for their competence, ability, integrity, and service to the profession. It is a voluntary means of demonstrating professionalism and involves being held to account by your peers for your abilities and adherence to ethical standards.

It is in this context that ASCI has commenced discussions with several Industry Peak Bodies in the supply chain domain, with the objective to offer registration against the Professional Accreditation Scheme through these Industry Peak Bodies, to their members, making the scheme more accessible to the broader supply chain community. Peak Bodies that are interested in offering professional and practitioner registration to their members can do so by affiliation with ASCI.

If you represent a peak industry body then we want to hear from you. Contact Our National Office at professionalisation@asci.org.au to commence discussions. It is through our common passion for the sustainability of the supply chain community that we can collectively raise the bar of supply chain management in Australasia.

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Dr Pieter Nagel is Head of Professionalisation at ASCI. Contact him about collaboration or registration at professionalisation@asci.org.au

Be a Supply Chain Ambassador

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Guest Blog: ASCM CEO Abe Eshkenazi, CSCP, CPA, CAE

“In the first three months of 2019, employees got so much more work done that they smashed productivity forecasts,” writes Alexia Fernández Campbell for Vox Media. “That’s great for businesses (they earn more money) and for the economy (GDP grows faster). The problem is that companies aren’t rewarding their employees for the extra hard work.”

A recent Gallup World Poll bears out the author’s conclusions, finding that 85% of workers are displeased with their jobs.

As I read this article and considered that unfortunate statistic, I couldn’t help but reflect on ASCM’s brand new 2019 Supply Chain Salary and Career Survey Report. With so many people feeling underappreciated and underpaid — in fact, there were a record number of strikes in the United States last year — this survey reveals that supply chain salaries are on the rise and industry professionals truly love their jobs.

The median supply chain salary in 2018 was $80,000, a 3% increase over 2017. Even more importantly, an overwhelming majority of respondents say they are very or extremely satisfied in their jobs.

This report confirms what all of us at ASCM and every supply chain professional already know: Supply chain careers are rewarding, both professionally and personally. We at ASCM are also proud to discover that the median salary for people with at least one APICS certification is 25% higher than those without. And, in addition to the power of APICS education to advance careers, our initiatives related to women in supply chain are paying off: The gap between men’s and women’s salaries is narrowing, especially for professionals under 40, where the difference is less than $1,000.

Put the findings to work

As we continue to face a vast talent gap, this report highlights numerous opportunities to attract more people to the supply chain. But ASCM can’t do it alone; we need your help.

Begin by talking to the young people in your life about why you are passionate about what you do. Describe your job and how it has a positive influence on the entire business, the lives of your customers and the communities in which they live.

Explain why you look forward to staying in supply chain for years to come (93% of respondents believe they will stay in the field; 44% say they definitely will).

And tell them about the work-life balance you enjoy (nearly all respondents receive holiday pay, and the majority receive three weeks or more paid time off, as well as flexible work schedules).

Then, take a moment to download the survey and post it in your social channels. Share something that you’re especially excited about with the hashtag #lovemyjob. As more and more people outside the industry experience our enthusiasm, they will see that supply chain professionals are highly sought after by employers, make a difference at our organisations and have truly fulfilling careers.

To find out more about APICS certification, visit Australasian Supply Chain Institute – the Premier Channel Partner – for Australian Semester schedules and prices.

Are we ready for Industry 4.0?

Guest Blog: Rob Stummer, CEO, Australasia, SYSPRO

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With all the discussion around Industry 4.0, how ready are we for it in this region and how many manufacturers have fully embraced it? It’s widely agreed that manufacturing has experienced a decade of productivity stagnation and demand fragmentation and the fact is that this level of innovation is long overdue. It’s been proven that the Australasian organisations that have taken Industry 4.0 innovation to scale beyond the pilot phase have experienced unprecedented increases in efficiency with minimal loss of employees.

The main issue reported by McKinsey and the World Economic Forum is that most companies appear to be stuck in the pilot phase and despite all the research and evidence saying that it will lead to a sizeable increase in global wealth production, benefiting people throughout society, the Australia and New Zealand governments have not done enough to help its advancement.

Globally it is having an impact globally across multiple sectors, simplifying things by streamlining processes, reducing human labour, fostering global interconnectedness and leading to unlimited possibilities. But is Australasia really ready for Industry 4.0?

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Automation won’t take jobs

There has been a lot of scaremongering about the risk to jobs due to automation, but technology and changing consumer preferences are driving the demand for new skills and jobs. In many cases, these emerging technologies have improved processes without shedding jobs and have made businesses more competitive than they have ever been, resulting in lower prices for consumers, higher wages for employees or higher profits, leading to increased demand and more jobs.

The previous industrial revolutions have shown us that, in the long run, technology and other labour market changes have been positive for many employees, removing the jobs that nobody wants to do as they can be unpleasant, physically exhausting and dangerous or boring and repetitive.

In smart factories, the emphasis will be on adding value, and up-skilled workers will be highly sought after for their specialist knowledge and ability to innovate.

Will bots take over the world?

There are a lot of myths surrounding AI, and science fiction movies often portray it as robots with human-like characteristics taking control and using their super-intelligence against us. There’s no doubt that AI does raise a whole host of complex questions, and that the current way the industry does certain things will become defunct.

We can’t ignore the fact that the Australian manufacturers that are leveraging AI have made their companies far more efficient and productive. This is a trend that their leaders see as inexorable, and the pressure on them to adapt and compete is huge.

Automation is essential

Automation is working extremely well in several different manufacturing scenarios, particularly when finite precision is needed, in challenging or dangerous work environments, where repetition happens and when personalisation and configuration are required.

So, what does automation look like in practice in an industrial environment? There are many tasks that could be carried out by a robot; not only would they be more efficient, but also the employees could then focus on more complex work.

The real benefits of automation are what makes it truly worth the investment, including increased efficiency, reduced costs, improved safety and wellbeing for employees, due to avoiding monotony and a clear competitive advantage over manufacturers that choose not to automate. Automation is clearly the future of Australasian manufacturing and its influence will only increase as competition from China and other developing Asian nations grows.

Rob Stummer is CEO, Australasia, SYSPRO

 

 

Spacious Potential in the Sharing Economy

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By ASCM CEO Abe Eshkenazi, CSCP, CPA, CAE

The sharing economy is no longer just a catchy turn of phrase; today, sharing, renting and subscription services are everywhere. AirBnB for your holiday rental; WeWork for freelancers who prefer the office environment; Rover for the pup’s midday walk; Uber and Lyft when you need someone to drive you places; and Zipcar, LimeBike or Bird Scooters when you’d rather do the driving yourself. The potential applications are endless.

Although only 19 percent of U.S. adults have engaged in a sharing-economy transaction, PwC research reveals that 83 percent of survey respondents believe these services make life more convenient and efficient, 76 percent say they are better for the environment, and 43 percent admit that owning things can feel like a burden.

As ownership becomes unfashionable, the fashion industry is also taking notice.

“In October, the mall fixture [Express] launched Style Trial, a service that allows customers to borrow up to three pieces — with no limits on exchanges, free shipping both ways and free dry cleaning — for $69.95 per month,” writes Jasmin Malik Chua in Sourcing Journal. “If a subscriber loves something to death, she can buy it at a discount for keeps. Otherwise, she can keep garments circulating in an eternally refreshed ‘closet in the cloud’ with virtually infinite options yet zero commitments.”

Jim Hilt, Express executive vice president and chief customer experience officer, explains that this allows customers to tap the company’s “full assortment and styling services without breaking the budget.”

In addition to this kind of flexibility and cost savings, sharing clothes eliminates the hassle of shopping malls and the time spent packing bags for donation — not to mention all those minutes staring at our wardrobes trying to decide if an item still sparks joy.

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Shifting business models

Until very recently, most of us would never have considered staying in some random person’s home while on vacation, let alone sharing a sweater with a bunch of strangers. Yet today, Airbnb averages 425,000 guests per night — nearly 22 percent more than Hilton Worldwide.

“The data shows, renting and sharing are becoming increasingly popular alternatives,” the PwC report asserts. “Executives will be wise to assess the role of their product and brand in this model — are you squarely a purveyor of goods, or are you an enabler?”

For those supply chain managers bracing for change and facing some tough calls concerning clothing lifespans; quality control of shared garments; and logistics economics, especially for lower-cost items, there is some good news. The sharing economy is also flourishing in the education space, with LinkedIn Learning, Grow with Google, and a seemingly infinite number of instructive and informative videos on YouTube. Our own channel is bursting at the seams with customer success stories, webinars, research, annual conference sessions, and a multitude of supply chain education tailored to fit just right.

To join ASCM, joint membership is available through Australasian Supply Chain Institute for just $440 per annum. Visit our website for a full list of membership benefits.

Indian regulations rain on Amazon and Walmart’s e-commerce parade

By ASCM CEO Abe Eshkenazi, CSCP, CPA, CAE

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Amazon and Walmart subsidiary Flipkart is scrambling to revamp its supply chains, vendor relationships and systems. New regulations from the world’s fastest growing economy have undermined these retailers’ business models and obstructed their sales in India’s burgeoning e-commerce sector.

Previously, foreign companies were forbidden from holding their own online inventory and shipping it directly to customers. Amazon had found a workaround in the form of local subsidiaries of firms in which it had holdings, which opponents insisted was violating the spirit of the rule. Largely due to such proxy sellers, Amazon and Walmart had controlled almost 80 percent of India’s e-commerce.

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But as of February 1, such goods are not permitted for sale by foreign companies. In addition, these firms are barred from entering into exclusive online sales agreements. A vendor’s inventory also will be considered under the control of an e-commerce marketplace if more than one-quarter of its sales are derived there.

The protectionist move follows ongoing complaints from domestic retailers over anticompetitive practices. Amazon and Walmart both requested a six-month postponement of the effective date but were denied.

“Thousands of products were pulled from Amazon.com Inc.’s India website Friday — the first direct impact from the country’s new e-commerce rules,” writes Corinne Abrams in the Wall Street Journal. The article goes on to explain that the restrictions are the latest effort by India to curb U.S. tech giants’ dominance in the country and “promote homegrown companies” as Prime Minister Narendra Modi seeks a second term.

“Both Amazon and Walmart have made big bets in India, where the e-commerce market is estimated to balloon to $72 billion in 2022,” Abrams adds. “Amazon has pledged to invest $5 billion to expand in [India], while Walmart’s takeover of India’s Flipkart for $16 billion was its biggest acquisition ever.”

Global supply chain know-how

The operations of these e-commerce giants have been thrown into disarray. As these companies, and others, navigate such severe regulatory pressure, success will hinge upon the effectiveness, responsiveness and flexibility of their supply chains.

ASCM provides the resources you need to plot your own course through the ever-shifting global marketplace. The APICS Certified Supply Chain Professional (CSCP) program enables individuals to master the fundamentals of supply chain strategy, business model design, relationship-building, risk management and much more. In particular, the CSCP learning system includes a module centered around monetary, regulatory and trade considerations; negotiation and collaboration; and international standards and compliance. Begin your journey toward this world-class certification today.

The Australasian Supply Chain Institute (ASCI) is the Premier Channel Partner for APICS and offers joint memberships with ASCI for local and ASCM for global membership for both corporates and individuals. Contact us today at http://www.asci.org.au/membership or enquiries@asci.org.au.