Supply Chain Talent-Evolving Across Generations - 22 MAR 2017_final

Supply Chain Talent:
Evolving Across Generations
Summary of a Quantitative Research Project to
Understand Multi-Generational Drivers
3/23/2017
By Lora Cecere
Founder and CEO
Supply Chain Insights LLC

Contents
Research Methodology
Disclosure
Executive Summary
State of Supply Chain Talent
Generational Differences
What Makes a Good Boss?
Most Important Skills?
Greatest Talent Gaps
Recommendations
Summary
Appendix
Additional Related Research
About Supply Chain Insights LLC
About Lora Cecere
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Research Methodology
We are committed to delivering thought-leading content for the supply chain leader. Our goal is to be
the first place visionaries turn to in order to gain unique insights to drive supply chain excellence.
This report is a summary of quantitative research on supply chain talent. This research was fielded in
2017 using Supply Chain Insights’ lists of supply chain leaders, and followers on Beet Fusion,
LinkedIn, and Twitter. In this report we share key findings and insights to help supply chain leaders
manage cross-generational teams. A summary of the study methodology, outlining goals and
objectives, is shown in Figure 1:
Figure 1. Study Goals, Objectives, and Overview of the Methodology
Details on respondent demographics are shared in the Appendix. In Figure 2a, we share a high level
summary of respondents used in the analysis, while in Figure 2b we establish generational
definitions.

Figure 2a. High Level Summary of Respondents
The generational definitions are listed below.
Figure 2b. Generational Definitions

Disclosure
Your trust is important to us. In our business we are open and transparent about our relationships. In
this research process we never share the names of respondents and/or give attribution to open-
ended comments collected in the research.
Our philosophy is “You give to us, and we give to you.” We collect data from a private network of
qualified participants and openly share the results. The participants of our research always receive
the final reports; and, if interested, we share insights from the studies with the respondents of our
quantitative surveys and qualitative interviews in a complimentary one-hour phone call with supply
chain teams, or through a virtual roundtable discussion among respondents.
This report is written and shared using the principles of Open Content research. It is intended for you
to read and share freely with your colleagues, and through social channels like LinkedIn, Facebook
and Twitter. When you use the report all we ask for in return is attribution. We publish under the
Creative Commons License Attribution-Noncommercial-Share Alike 3.0 United States and our citation
policy is outlined on the Supply Chain Insights Website.

Executive Summary
Supply chain management remains an exciting career path with significant job opportunities and
overall job satisfaction. Overall, employees feel they have challenging work, competitive and
acceptable salaries, and work/life balance. There is an opportunity to improve training, build talent
and flexible work programs, and make employees feel more appreciated. These attributes are shared
in Figure 3.
Figure 3. Job Factor Analysis of Supply Chain Employees
Closing the gaps requires the recognition of cross-generational talent needs, and building teams that
are inclusive.

State of Supply Chain Talent
The turnover to the fourth decade of supply chain pioneers is nearing completion. While 70% of
supply chain employees are satisfied with the career, diversity remains an issue.
The findings in this report represents 386 completes. Does this group represent the population of
supply chain professionals? Yes, we believe so. Let’s examine the facts. The study was fielded for
two months. The primary source of respondents came from LinkedIn. NOTE: At the time of fielding
this survey, Supply Chain Insights’ Founder, Lora Cecere, was followed by 165,000 business leaders.
As a female Baby Boomer, there is a possibility of some gender and age bias. So, the gaps in
diversity in the industry may be worse than reported.
As can be seen in Figure 4, the majority of the respondents in the study were from Generation X, and
39% of the respondents were Caucasian males.
Figure 4. Respondent Demographics
In the past five years, as a significant Baby Boomer supply chain workforce retired, the supply chain
workforce baton was passed to Generation X. (Some of these trends can be seen in our prior reports
referenced in the Appendix.)

The term supply chain management was first used by Keith Oliver of Booz Allen in the Financial
Times, to reference source, make and deliver together in 19821
. In the 1980s we saw the first
evolution of supply chain teams. These teams were largely Baby Boomers. They were dominantly
Caucasian males. (The first decade of supply chain pioneers was 1980-1990. The second generation
was 1991-2000. The third was 2001-2010 and the fourth is 2011 to present.) Today, four decades
later, the workforce is now primarily Generation X, but it is still primarily Caucasian and male.
Diversity remains an opportunity.
Generational Differences
In general, satisfaction in supply chain management is high. In this study, Baby Boomers are more
satisfied with their jobs, and employees of software vendors, and those with work at home options,
register higher levels of satisfaction. These results are shown in Figure 5.
Figure 5. Differences in Respondent Satisfaction
There are some marked differences between the generations. In their careers, Baby Boomers expect
to work for more employers, and are willing to work more hours a week, than Generation X or
Millennials.
1
Keith Oliver, Wikipedia, https://en.wikipedia.org/wiki/Keith_Oliver, March 19, 2017

As shown in Figure 6, the work ethic is significantly different and at a 90% or higher confidence level.
Figure 6. Generation Work Ethic Analysis
The drivers of job satisfaction vary by generation. While Baby Boomers are more motivated by having
challenging work and believing in the company and its products/services, Generation X and
Millennials are more motivated by training, career path opportunities, and a work/life balance. When it
comes to what’s important to them, Millennials are more similar to Generation X than Baby Boomers.
As a result, the shifting ages of the supply chain workforce are challenging the more traditional
definitions (often held by Baby Boomer bosses) of supply chain team work definitions. In one-on-one
qualitative interviews, Baby Boomer bosses will often grumble that “These young kids want to work
fewer hours, have time to work from home, be coached/trained more than I was, and want career
certainty despite market uncertainty.” Based on the findings shown in Figure 7, this is a true
statement. The conclusion? Accept the facts and build the team to embrace cross-generational
differences.
While Generation X and Millennials want more work/life balance, fewer hours, and greater time to
work from home, this is not always possible.

Figure 7. Most Important Aspects of a Job by Generation

In addition, the generations’ communication styles vary. Baby Boomers and Generation X tend to use
more methods than do Millennials to communicate at work, especially online meetings and video
chat, as shown in Figure 8.
Figure 8. Modes of Communication
What Makes a Good Boss?
Managing and leading supply chain teams in this time of change requires leadership. When it comes
to being a good boss, clear communication is the most important skill. In the words of one of the
people who we reviewed this data with, “Being a good communicator is like being a good driver.
Everyone thinks that they are good at it, but we all need to improve.” The second two factors—
“Provides a motivating vision” and “Leads by example”—are leadership qualities. Note at the bottom
of the list are: “Fun to work with,” “Responsive to employees questions/needs,” “Supports work/life
balance,” and “Embraces diversity.” These are shown in Figure 9.

Figure 9. Characteristics of a Good Boss
Figure 10. Need for Support Elements

As shown in Figure 10, there are more differences for Millennials when it comes to characteristics of a
good boss than those of Baby Boomers or Generation X. Millennials are seeking more coaching and
on-the-job-training programs. Some of this is driven by age, but should be a wake-up call for Baby
Boomers—who were often forced to forge their own paths due to the early evolution of supply chain
practices—to design support programs to improve job satisfaction of Millennials.
The differences in the characteristics of a “good boss’ by generation are shown in Figure 11.
Figure 11. Characteristics of a Good Boss by Generation
Most Important Skills?
The supply chain professional is highly analytic. The generations agree that the best performers are
good problem solvers with strong analytical skills and are able to see the big picture. It is for this
reason that supply chain management teams often recruit engineers who do not have formal supply
chain educations. With the majority of supply chain professionals coming from business schools, not
engineering schools with strong math backgrounds, this can be a gap. Continually work with
academia to ensure these base analytical skills are met. This is shown in Figure 12.

Figure 12. Important Skills
Figure 13. Most Important Skills by Generation

How does this vary across the generations? While Baby Boomers want employees to see the “big
picture,” Millennials are looking for more team members who can “think out of the box.” Generation X
is stuck in the middle. There is organizational tension to focus analytics on traditional processes,
which are now becoming legacy, and make them more efficient versus a redesign.
Greatest Talent Gaps
In five years of fielding quantitative studies on supply chain talent, we consistently find that the
greatest shortages of professionals are at the intersection of process and analytical mastery. In this
study, jobs like demand and supply planning, and data scientist, top the list of positions in greatest
demand, while positions in supply chain execution—transportation and customer service—are easier
to recruit and train.
Figure 14. Talent Gaps by Role
The market is competitive. Companies looking to build supply chain excellence need to focus on
building planning skills sets, and need to realize that turnover due to cross-company
recruiting/poaching makes it critical to build core capabilities to deliver a deep bench in planning and
data analytics.

Within manufacturing and retail industries, 28% of respondents have a supply chain human resource
team, but only 52% of these are viewed as effective. Why? The pace of change is just too fast.
Success happens when there is an active partnership between line-of-business leaders and talent
development/human resources teams.
With the evolution of new technologies and the confluence of new ways of working using robotics,
automated vehicles, block chain, new forms of analytics, and the Internet of Things, the greatest
training gap is on next-generation supply chain training. The past lies behind us. What is often
believed to be “best practices” are now seen as “traditional thinking.” Within organizations there is a
lure to build the “Art of the Possible.” Millennials are impatient with traditional technology approaches
and difficulties getting and using data. Across the generations, there has never been greater
opportunity to invent process innovation through technology innovation. It is unprecedented.
Figure 15. Top Challenges Facing Companies in Building Supply Chain Teams
Over the last two decades, the focus was on “standardization of best practices using packaged
software.” This is changing. Increasingly, employees want to be able to explore new ways of working.
For most companies, driving this process innovation is difficult. With slowing growth and a heightened
focus on cost savings, in many companies it is hard to justify incremental headcount and champion
teams to innovate. Companies want a well-defined ROI and are willing to test and define new ways of
working.

Building this type of team to drive process innovation requires strong influence management and the
outcome of a boss who is a clear communicator. With 88% of companies stuck at the intersection of
operating margin and inventory turns, process innovation and new ways of working offer significant
opportunity2
.
2
Supply Chains to Admire, Supply Chain Insights, http://supplychaininsights.com/2016-supply-chains-to-admire/, March 20, 2017

Recommendations
As you read through this report, we hope it stimulates thought and drives action. Here are five
recommendations to consider in building your strategy:
 Recruit for Problem Solving, Pattern Recognition and Deep Analytical Skills. Look for
candidates who have a desire to learn along with a passion for math and analytics. Explore
partnerships with schools in co-op programs to locate talented students.
 Select Managerial Talent Based on Communication Capabilities. Being a clear communicator is
easier to say than do. Spend time working with managerial candidates on leadership fundamentals
including clear and concise communication as well as active listening skills.
 Focus on Process Innovation and New Ways of Working. Increasingly, we are seeing groups
focused on process innovation. To maximize these efforts form cross-functional and diverse groups
with a passion to test new technologies and drive process innovation. Start this work with a goal in
mind and keep the group grounded to deliver business value.
 Build Diversity in the Supply Chain Team. Hire to drive diversity of thought. This includes
diverse backgrounds, ethnicity, and gender. Train teams to value diversity. Continually redefine
teams to drive diversity. Actively support mentoring of women and employees of color.
 Embrace the Values Across Generations(s). Don’t Fight Them. Supply chain processes were
defined by Baby Boomers. The traditional norms of supply chain teams need to morph with the
changing needs of cross-generational groups. The first step in this work is listening for
understanding. The second is being open to the outcome and morphing expectations to embrace
generational change.
 Coach/Mentor Millennials. Recognize that Millennials need and want coaching. Work with
leadership teams to make this happen.
Summary
Supply chain talent is evolving. While job satisfaction is high, there is a skill shortage in planning roles
requiring advanced analytics. Only 50% of supply chain human resource teams are viewed as
effective. To improve effectiveness, we recommend that leadership read and think through the key
points in this report to accelerate value.

Appendix
In this section, we share the demographic information of survey respondents, along with additional
research findings to support the key insights shared in the text of this report.
Our philosophy is that “respondents give to us and we give to them.” All respondents participating in
this survey will be given the results of this study and invited to share in a roundtable discussion with
other survey participants to gain additional insights.
In our research, the names of individual respondents and companies participating are held in
confidence. The demographics and additional charts are found in Figures A–J. At the bottom of each
image are the specific questions asked in the survey along with the survey details.
Figure A. Overview of Respondents by Work Status

Figure B. Respondent Gender, Race/Ethnicity and Regional Analysis
Figure C. Generational Classification of Respondents

Figure D. Business User Industry Breakouts
Figure E. Respondents by Work Type

Figure F. Overview of Manufacturing/Distribution and Retail Business Respondents
Figure G. Respondent Overview by Employment Type

Figure H. Overview of Supply Chain Human Resource Functions
Figure I. Baby Boomers: Job Expectations

Figure J. Top Challenges by Generation
Additional Related Research
Since the Company founding in 2012, the Supply Chain Insights team has published nearly 100
reports. Unlike other industry analyst groups—who keep research behind a paywall—we share
research openly to help all global supply chain leaders drive supply chain excellence. All of the
research is archived for social sharing on SlideShare ,on the Supply Chain Insights website, in our
community on Beet Fusion. To gain a deeper comprehension of the research, check out related
reports by clicking on these links:
Supply Chain Talent: A Broken Link in the Supply Chain
Driving Supply Chain Excellence Through a Center of Excellence
Supply Chain Talent: The Missing Link

About Supply Chain Insights LLC
Founded in February 2012 by Lora Cecere, Supply Chain Insights LLC is beginning its sixth year of
operation. The Company’s mission is to deliver independent, actionable, and objective advice for
supply chain leaders. If you need to know which practices and technologies make the biggest
difference to corporate performance, we want you to turn to us. We are a company dedicated to this
research. Our goal is to help leaders understand supply chain trends, evolving technologies and
which metrics matter.
About Lora Cecere
Lora Cecere (twitter ID @lcecere) is the Founder of Supply Chain Insights LLC and
the author of popular enterprise software blog Supply Chain Shaman currently read
by 15,000 supply chain professionals. She also writes as a Linkedin Influencer and
is a a contributor for Forbes. She has written five books. The first book, Bricks
Matter, (co-authored with Charlie Chase) published in 2012. The second book, The
Shaman’s Journal 2014, published in September 2014; the third book, Supply
Chain Metrics That Matter, published in December 2014; the fourth book, The
Shaman’s Journal 2015, published in September 2015, and the fifth book, The Shaman’s Journal
2016, published in September 2016.
With over 12 years as a research analyst with AMR Research, Altimeter Group, and Gartner
Group and now as the Founder of Supply Chain Insights, Lora understands supply chain. She has
worked with over 600 companies on their supply chain strategy and speaks at over 50 conferences a
year on the evolution of supply chain processes and technologies. Supply Chain Insights hosts an
annual global conference annually to help supply chain leaders network on next-generation supply
chain practices and prepare for Supply Chain 2030. Her research is designed for the early adopter
seeking first mover advantage.

Supply Chain Talent-Evolving Across Generations - 22 MAR 2017_final

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