Supply Chain 2010: Building on the lessons learned

The recession may be coming to a close-at least officially. But the effects of that painful period linger on. Supply chain managers need to learn from the lessons of the past as they rebuild the foundation for a brighter future.

Sean Murphy, Associate Editor -- Logistics Management, 12/22/2009

With the recession in full swing, 2009 was a wild ride for some companies-and their supply chain managers. In a survey of more than 500 CFOs conducted by Basware in cooperation with Indiana University's Kelley School of Business and the University of Navarra's IESE Business School in Spain, 64 percent cited "reducing direct costs" as their top priority. It was, for many companies and their supply chain managers, the year to stay alive.
Fortunately, while many who are out of work would dispute word that the economy is improving, statistics from monthly reports from the Institute for Supply Management (ISM) have pointed to growth in the non-manufacturing sector, and even stronger growth in manufacturing. Findings like these have prompted many analysts to declare that the economy has not only finally ended its downward slide, but is on the way to recovering.

Recovery or not, one thing remains clear: The corporate world, and by definition the supply chain, has been changed forever. In this article, we discuss key trends that will impact the professional lives of the supply chain manager in 2010. These trends are grouped into four categories: education and professional development; technology; risk management, and global strategies. In each of these areas, the recession's lingering presence is plain-and supply chain managers would do well to heed its lessons.

"Renaissance" Education Needed: The recession saw, among other things, a massive cutback in staffing at most companies. Experts say there's a good chance those employees won't be hired back anytime soon. As a result, the employees that remain, including supply chain managers, must seek out new skills and expertise in new areas. In short, according to Kathleen Hedland, Director of Education and Research at the Council of Supply Chain Management Professionals (CSCMP), they must become renaissance people-if not reinvent themselves altogether.

And Hedland said companies are asking their people to expand on their knowledge and skills even more, and that will continue into 2010. In particular, Hedland said employers are finding short-term education most attractive, as it doesn't keep employees out of the office as much. Hedland said they are seeking out workshops and online self-study courses offered by organizations such as CSCMP. "Companies are slimming down. They've got a lot less people. They can't justify them being out of the office even for a full day," she said.

Some private options for online education have emerged in recent years. For example, Terry Nulty, executive director of Accenture's Supply Chain Academy, said his firm has offered staff training and schooling to corporate clients for the past six years. Originally, Nulty said, clients wanted overall, general supply chain knowledge. "That still hasn't changed," he said. But starting in early 2009, clients began seeking more focused training on specific supply chain processes and topics, such as inventory management and procurement. Nulty expects Accenture to be adapting its curriculum to the client's needs more and more often, with the one-size-fits-all approach no longer being the norm.

Once again, the recession seems to be the impetus. Nulty said the academy's clients are demanding more focused training due to their creating new key performance indicators. Those KPIs, Nulty said, are usually based directly on problems emerging during the recession.

But education is not just for professionals already in the working world. More colleges and universities are expected to expand on their degree offerings in 2010. Simon Croom, professor of supply chain management at the University of San Diego, said his school has just introduced a new undergraduate minor in supply chain management, an MBA program in supply chain management, and a Master of Science degree in supply chain management.

The reason, Croom said, was simple: more students want these programs. Just three years ago, supply chain management-related classes at his school were at 60 percent capacity. Today, they are full. "We're seeing more students taking the courses now then they ever have," he said.

The long-term benefits of supply chain management degrees are obvious, too. Croom said each year, an average of 60-70 graduates who studied supply chain management are finding jobs.

Online or in the Classroom?: The "which is better" debate between online and in-classroom course offerings may never be resolved. In 2010, look for more and more courses to be available online, and more people preferring online education. Yet the good old-fashioned classroom setting, it seems, will never go out of style. Whether you seek education online or in a classroom will depend on who you are, sometimes where you are, and definitely on what you need. ...

To keep reading, check out the full article here.