Procurement Talent Challenges in the Middle East? So, we got off to a great start this sunny Sunday, April morning at the marcus evans Defence Procurement Summit 2016 in Dubai. True to their military form, attendees arrived sharply at 8am for registration and the eagerly anticipated Opening Keynote presentation from Chairman Mark Taylor, Former Global Supply Chain, Logistics & Operations Executive, UK Ministry of Defence. I had the chance to catch up with Mark after his presentation to learn a little more about his expert subject area 'Building Effective and Efficient Procurement Talent'. I was most curious about audience questions. As we know, it's often those questions that go right to the heart of practitioner attendee concerns, and help our attendee solution providers keep their fingers on the pulse, in terms of where the next solutions need to be. And what was that burning question...? Why must defence procurement and logistics supply chain directors, think more strategically about talent management? Because, says Mark, best-in-defence execution depends on best-in-defence people. It doesn’t matter how much you invest in logistic SCM, technology or processes - if you don’t also invest in people, you won’t succeed.

2. Simply the Best
"Building effective, efficient procurement talent"

3. Synopsis
Why must defence procurement and logistics supply chain directors,
think more strategically about talent management?
Because best-in-defence execution depends on best-in-defence
people. It doesn’t matter how much you invest in logistic SCM,
technology or processes - if you don’t also invest in people, you won’t
succeed.

4. Scope
 Why is there a shortage of logistics, procurement & supply
chain talent?
 Solving the “talent crisis”
 The alternatives?
 Technology versus employee capacity - complex Log IS =
increase in the required employee skill level

5. Why?
 Technology
 Increasing demand
 Expanding demographic void
 Rapidly evolving “skillset” requirements
 Potential shortfalls in academia
 Negative bias towards the logistics “image”

6. The perfect storm? Source: Mehta, A. (2015)

7. Technology versus employee capacity
 Legacy employees
 Evolution of Log IS
 The cost of human error
 CPD?

8. Increasing demand
 Increased complexity of supply chains
 Demand for supply chain professionals exceeds supply by a
ratio of 6 to 1
 The future could see a ratio of 9 to 1
 Graduate versus vocation

9. Expanding demographic void
 An aging workforce
 Europe and America face the same talent “exodus”
 Retirement versus replacement
 Middle management shortage
 Fallout from the 2008 financial crisis

10. The talent gap
29%
61%
10%
Source: Supply Chain Insights LLC, 2014.
Entry Level
Middle Management Level
Executive Level

11. Expanding demographic void
 An aging workforce
 Europe and America face the same talent “exodus”
 Retirement versus replacement
 Middle management shortage
 Fallout from the 2008 financial crisis

12. Rapidly evolving “skillset” requirements
 Supply chain managers – growth of role

13. Growth of role

14. Rapidly evolving “skillset” requirements
 Supply chain managers – growth of role
 Competencies
 Broader qualifications required
 Multiple skillsets
 A developing environment

15. Potential shortfalls in academia
 The capacity of academia to create new talent
 60% of new logistics roles require skills that only 20% possess
 Only 1.3% of all business studies are dedicated to SCM, logistics &
transportation
 First find then train talent
 University placements in industry

16. Negative bias toward the logistics “image”
 Lack of understanding
 Not a “career path”
 Inadequate educational programs
 Attracting the “young”
 Change sensitive

17. Solving the talent crisis
 Liaison with the logistics industry
 “In house” formulisation of knowledge transfer
 Education by employer
 Employee role-rotation mentorship programs
 Become an “employer of choice”

18. Liaison with the logistics industry
 Must be proactive
 Collaboration
 A learning platform
 Academic programs must understand the industry
requirements

19. Industry based supply chain education program
Continuous improvement
Logistic risk management & analysis
Supply chain strategy
Sourcing & procurement
Supply chain concepts
Business environment
Sustainability & corporate responsibility
Logisticservices,concepts&tools
Productlifecycle
Futurechallenges,latestdevelopments

20. Liaison with the logistics industry
 Must be proactive
 Collaboration
 A learning platform
 Academic programs must understand the industry
requirements

21. In-house formulisation of knowledge transfer
 Educate, improve, develop, retain
 Knowledge management
 Learn 1 role up and 2 down
 “Lost” knowledge is hard to replace
 Overlap key logistic positions
 Higher “head-count” for a short period
 Challenges?

22. Education by employer
CEO: “What if we train our employees and
they leave?”
COO: “What if we don’t and they stay?”

23. Education by employer
 Employers develop their own program for their own requirement
 E-learning & “on-the-job”
 No loss of employee
 Not short term
 Qualification recognition/accreditation

24. Employee role-rotation mentorship programs
 Learn 1 role up and 2 down
 Enriches employees
 Provides management a “fallback” option
 Increased flexibility
 Talent exchange
 Employees better understand the business

25. Become an “employer of choice”
 Industry commitment required
 Incentivize employees
 Formualised career path
 Remuneration
 Work/life balance
 Driven from the top down

26. The alternatives
 Is there an alternative?
 There is no choice

27. BI analytics
Source: CGI (2015)

28. Questions

29. References
 Harrington, L., & Smith, R. H. 2015. Automotive Industry Brief: Solving the
Supply Chain Crisis. Maryland: DHL & University of Maryland.Evolution of
role.
 Noble, D. 2016. The Skills Shortage Facing Global Supply Chains. Supply
Chain Digital, [Online] 1 (1). pp.1. Available at:
http://www.supplychaindigital.com [Accessed on 2 December 2015].
 Spikes, L. 2015. Technology is your Catalyst for Change. Procurement
Leaders Global Intelligence Network, [Online] 1 (1). pp.1. Available at:
http://www.procurementleaders.com [Accessed on 1 December 2015].
 Mehta, A. 2015. Shortage of Supply Chain Professional: Some Facts.
Procurement Leaders Global Intelligence Network, [Online] 1 (1). pp.1.
Available at: https://www.linkedin.com [Accessed on 1 December 2015].