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The Future of Headhunting in Supply-Chain Management

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The Future of Headhunting in Supply-Chain Management

The industrial revolution was a major revelation to the whole world back in the 19th century. It changed people’s perspectives of the working industry holistically. The fast-paced revolution was sort of like an eye-opener to the public. It was a race to the future, and no one saw it passing so fast.

In 2019, the game is different in all aspects. Machines and modern equipment are not new. Technology, with a brisk run, has caught up with the lives of all the people, and they are dependent on it. There are tribal hamlets without big changes in villages and forests still, but technology is surely catching up. It won’t be long before you get mobile signals inside all dense forests.

Where is business heading then? The global research and advisory firm Gartner predict that within a year, at least 50% of major business systems will have IoT in it, in one way or the other. IoT is the internet connectivity extended into physical devices and everyday objects, and we would already know how big a role IoT plays already in our daily lives. To see a person not using Google maps for navigation in a major city would indeed be a sight of rarity.

If you think this is the pinnacle of technological advancement, then count it only as the beginning.  We are about to witness some more action. Gartner also predicts that up to 36 million inter-connected smart devices will be installed in a decade and that it would generate over $300 million in revenue. This means IoT will have a huge role to play in how the supply chain operates for business enterprises.

SCM Revolution

Supply-chain management is the effective management of the flow of goods and services, involving movement, storage and delivery of finished goods and services from the point of origin to the point of consumption.  SCM calls for an integrated approach in design, planning, execution, control, and monitoring of supply-chain activities. IoT has a big role to play here.

Many global firms recognize the transformation role played by the IoT in the manufacturing, retail, and service sectors. Most of the organizations depend on IoT solutions for locating objects, containers, and personnel. Smart mailboxes are used by postal services in some remote areas to find out if the boxes are empty. This saves unwanted journeys. Some pharmaceutical companies use sensors to monitor their temperature-sensitive products. When you order a product online, you get an online tracker to monitor its delivery. All these setups increase the productivity of the organizations. This is business intelligence in its higher echelons.

The IoT devices have revolutionized the supply-chain systems.  It is much easier to know the whereabouts of the products/goods in storage or movement. It also helps the companies to stay competitive in the market. Let’s talk about some of the major operational efficiencies of IoT, and you will know about the main advantages in the field because of it.

 

 

 

Asset Tracking: Bar codes and tracking numbers were usually used to manage the goods in the supply chain.  However, IoT has changed the entire game plan. The old methods are no longer the best. There are plenty of methods using which the whole process can be expedited.  RFID (Radio Frequency Identification) is used nowadays as the main method of communication.  RFID and GPS sensors can be used to track the products. It’s not just a matter of simple tracking here. These sensors can be used to calculate and arrange a wide array of data. Fetching granular data like the temperature of storage is an example. The amount of time spent by cargo and the exact location of the goods and products is priceless information. This way, the companies can use the data as leverage to minimize the flaws next time. The labor and time can be easily managed. In business, excessive time and headcount mean money lost, and through IoT, the companies get to save a lot of it.  In a nutshell, the organizations have a wide array of data that they can use to improve and take their business to the next level. Quality control, on-time deliveries and product forecast – It all becomes easier and much better.

Vendor Relations: When we talk about healthy relations with vendors, it doesn’t mean a friendly handshake or how good you are in talking them into a good deal. It is much bigger than that. Data shows that over 60% of the value of a company is derived from its suppliers. It’s a huge share and that is exactly why it is important to have healthy vendor relationships. The information available through IoT plays a crucial role here. When asset tracking improves, the companies get a good chance to tweak their production schedules and charts to improve their overall productivity. This way, it’s easy to zero in on poor vendor relationships that cost the company money. How are the vendors handling the supplies they are sending you? How are they handling them once the product is made? The quality of products is important, and it reciprocates as good relationships with customers, helping in customer retention as well.

Forecast and inventory: When data gets messier, the whole system crumbles. When there is an expert way to handle data, then there is more clarity. The accuracy of IoT in handling inventories is commendable. The speed and accuracy of the operations are better than any human who can do the same tasks at his prime. Instead of a human, when there is a robot to scan the QR codes or handle the data, then the speed increases manifold. This is already a custom in most of the multi-national companies like Amazon who are experts in Supply Chain Management. The inventory can be tracked easily, and the supplies for stock and future can be managed much more productively. Who wouldn’t want error-free efficiency and preciseness in handling data?

Connected Fleets: People used to wait for ages for a mail to come and fall on their doorsteps. But gone are those days. It’s faster, and forget predictions and hope, you can easily pinpoint the exact time of delivery and location of a product. It is imperative in supply chain management to have a connected network of containers, trucks, vans, or any vehicle in that case used for the transportation of goods. Nothing is lost and all information is just within the reach of your fingertip. Where are the containers? How long will it take to reach the destination? What are the possible contingencies and how can it be handled without losing time and manpower? There are questions aplenty, but a connected fleet with IoT is the answer to most of these questions. Data is the key, and there is an improvement in every step forward. Manufacturers, vendors, retailers, customers and all elements in the operational structure can reap benefits using IoT.

Maintenance: A faulty system or machine costs a lot for companies when it’s supply chain they are dealing with. For this reason, it is important for the companies/manufacturers to constantly keep an eye on maintenance. Smart sensors through IoT have the power to keep everything inter-connected and intact. This prevents downtimes and blackouts. Prevention is better than cure, and that’s exactly what scheduled maintenance through IoT can do to your network.

Why is IoT a Game-Changer? Let’s Summarise

  • It’s reassuring that goods can be precisely located, both in rest and motion
  • Problems with the goods lost, or delay in delivery can be easily identified and rectified
  • Stakeholders get to know when they can expect to receive and process goods
  • Real-time shipment and tracking
  • Visibility and transparency of stock/inventory
  • Quality management and optimization
  • Efficiency in storage and distribution of goods and products
  • Time-management
  • Healthy vendor-relationships

Impact on Recruitment

All these developments act as a precursor to a new generation where all the activities and operations will be aligned using a technological handle that’s both easier to manage and good for business. The future is coming quicker than we can anticipate. An inventory on a ruled A4-sized notebook – those days are history. We need more skills and in another decade the market will be filled with millions of jobs that we have absolutely no clue about. It is kind of scary, but it can also be exciting if you are ready to adapt and change according to the evolving environments all around you.

When there is a technological improvement or new methodologies of actions in place in a company, it will surely call for a better scale of operation and the employees should be well aware of it. The skills required and key roles will change invariably.

Cyber Security is one such area that will play a huge role in the effective handling of all these companies. With most of the data and information controlled and managed through the inter-connected IoT, it is easy for a rival to use the same as a scourge to create a huge ruckus. As technology finds its way higher up the ladder, there will be hackers aiming to bring it down as well. Security is a big issue, and all data should be safe. Count this as a synonymous industry that’s growing with IoT.

 

When it comes to supply chain management, most of the transactions happen online nowadays. Social Selling isn’t new, but it is really important for recruiters. Sales professionals will have to research their leads and candidates to build a good rapport with the system.  Like social selling, there are many foreseeable changes and things that can never be predicted galloping towards us.

 

The Future of Jobs in SCM

IoT, 3D printing and big analytics are already playing a key role in changing the dynamics of the Supply Chain Market. In the wake of ever-changing patterns in the market, what jobs can we expect?

The future of demand planning: It could be all about cloud-based planning systems. The real-time drill could be different from how they are before. Online transactions and algorithms will change the entire mechanics of demand planning. The demand planner can become a business creator.  At the transaction level, the executive will be able to prioritize, analyze and solve supply-demand balancing problems. The commercial impact will play a huge role.

Production Planning: A production planner of the yesteryear will have to collaborate with robots than be programmed in the wink of an eye. Thousand of working pathways can be simulated and all the permutations and combinations can be tested within seconds. The IoT equipped machinery is from the future and just being able to push a button or turn the handle or knob on time, are the skills that wouldn’t matter to anyone.  The production planner has to be an expert craftsman. There is no need to manufacture long runs of low unit costs, and it can effectively improve business and increase the company’s profit.

Logistics Management: To a large extent, it will all be about dealing with customer satisfaction. The options for planning on building a load, making a route map and checking customer’s availability will be quite easy. There will be plenty of options available, and analytics and automation will ensure that it happens on time. Logistics could become the next uber-cool thing of the future. Custom-packing, drones, and pods will change the entire landscape of the delivery of the goods. Customer satisfaction and directing these automated machines in the right course will be the future of logistics management. Numbers and combinations won’t be a problem. It’s all about becoming a Logistics director.

Resource utilization: It’s all about sustainability. Optimal consumption of the resources and sustainability are the marks of the future. The executives will require machine learning for optimal resource utilization. The Supply Chain leaders of the future will have to reinvent themselves.

All the Skills Needed:

  • Strategic Planning and Big Thinking incorporating IoT and AI
  • Technological expertise and ability to adapt and apply Analytics, Artificial Intelligence, Robotics and the IoT in the supply chain
  • Collaboration, networking and relationship management
  • Control Tower leadership and single-point management skills
  • Ability to learn, adapt and use technological resources
  • Risk management and mitigation
  • Data analytics and high-level decision making
  • The ability to work seamlessly across all boundaries of culture, geography, and trends
  • Ability to quickly improvise and read the current trends
  • Lean and business process re-engineering
  • Machine-learning

Role of Headhunters

Due to the tectonic shift in the market, there is an increased need to educate and constantly be aware of the technological advancements. Big Data, Telematics, Warehouse and Workforce Management, IoT, AI, and Robotics – there is quite a lot that’s happening and changing in the supply chain industry. To effectively be able to select candidates who are aware and knowledgeable of these changes can be a daunting task.

Specialist recruitment services can make a big difference here. For functions like IoT, IIOT 4.0, Connected Devices, Telematics, Warehouse Management Software, and Workforce Management Software, there are headhunters who can get the right manpower with adequate knowledge.

Role of Headhunters for Supply Chain

  • To find the right candidates who are aware of the growing changes in the market
  • To find manpower who are adept and equipped with machine learning
  • To spot the right talent according to the changing environments in the industry
  • Hire the right candidates according to varying requirements
  • Educating the candidates about the requirements of the company
  • Assess, monitor and prepare a talent pool
  • Increase in productivity for the company by right placement
  • Act as a resourceful bridge for the candidate and client

It can be a daunting task to have a set of people working and get them to learn the alphabets from A to Z. Instead of that, the headhunters help in readying the right talent for all jobs in the chain. No second thoughts whatsoever! Headhunters play the role of talent agents for corporate companies.

The changing Course

It is always about adapting to the conditions that keep on changing all around us. Someone with decades of experience won’t be able to survive if he is unaware of the technological shifts around him. Someone good at his job will not survive if he is not ready to learn. IoT and AI are going to take over the operational cycles, and as much as it is good for profit-making and error-free operations, it also calls for high levels of flexibility and adaptive approach from the employees. The world is changing fast and it is imperative to keep on running.

Headhunters play a major role without any doubt. It helps the candidates and employees get what they deserve, and act as a mediator. It directs both the parties in the right direction. For corporate clients, it’s about a painless selection process. For candidates, it’s about the right job! They act as a bridge. In a way, you can call them game-changers.

 

The Future of Headhunting in Supply-Chain Management

Personnel consulting E-commerce

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Personnel consulting E-commerce

Electronic commerce or E-commerce is growing so rapidly across the world that it takes the top position when it comes to the average salary of employees and attrition rate. This makes the job of HR professionals very difficult to get candidates who perfectly fit in the e-commerce industry. In this industry we come across many start-ups and it has become really challenging to draw public attention and quality employees toward such start-ups. Moreover, it is an astounding task to control the disintegration of E-commerce companies in this highly competitive world. Therefore, there is little doubt that HR specialists have become one of the most important stakeholders in this business.

The success of E-commerce projects largely depends on the skills of an individual or as a group. So, for an HR professional in this industry, you should be well aware and have broad concepts about the functioning of E-commerce. You should know the management and staffing in E-commerce as well as the process of organizing a project work. If you gain the skills in managing the staffs in a project and measuring the outcomes, you can achieve your HR goals in this field.

Qualities required in a successful HR professional in the E-commerce industry

Given below are the qualities desired in an HR professional in the E-commerce industry-

  1. The HR professional should be able to keep their employees happy and satisfied-

While working for a fast-growing company, or in an atmosphere of tough competition, the HR managers come across quite a few challenges in retaining the best talents in the organisation. In such cases, HR professionals should follow strategic planning and keep a focus on giving an open work culture. They also need to provide good work-life balance and foster friendly relationships among the employees.

 

  1. The HR professional should be dynamic and flexible–

HR professionals do not follow any definite processes/standards in the E-commerce industry. Their objectives changes according to different hierarchies and growth plans. The growth of E-commerce companies depends on their seamless and 24/7 operation throughout the year. Also, E-commerce companies are synonymous with a fast working culture. To be accustomed to this culture, HR professionals have to be flexible. At times, there might be abrupt changes in the recruitment policy and HR operations and the HR professional should adapt to these quickly.

  1. The HR manager should be well-versed with technology and logistics operations-

The working profiles of HR managers in the E-commerce sector are quite different from that of other industries. The E-commerce companies use progressive technology and systems in their operations. The HR managers must be capable of hiring qualified candidates who possess relevant technical know-how and are experts in the field of E-commerce. In the E-commerce industry, the HR managers should work in collaboration with business heads of various fields to find the most eligible employees. They need to use innovative ways to hire the best talents to fit the needs of the company. Successful HR managers of today are selecting candidates through social media as well. In some cases, the HR managers are taking the help of recruitment specialists too. Such methods are not only helping the HR managers in concentrating on their employee development programs but are also fulfilling their hiring needs in the most efficient and economical way.

In the field of E-commerce, back-end supply chain management is one of the essential components for businesses. A third party is essential for storing or shipping of products if there are no brick and mortar storehouse. This is also necessary for basic time management. Thus, The HR managers in the E-commerce industry should have adequate knowledge of logistics as well. Then only they will be able to hire talents to suit the organisational needs perfectly.

  1. The HR team should be able to implement employee development programs–

In this fast growing E-commerce industry, relentless changes are also seen in terms of innovation and disruption. Hence, there comes a need for regular employee training and development programs. This will help the employees to upgrade their skills and keep themselves updated to the latest developments. The old-school methods of training and development policies will not work in this sector. Rather, the HR managers should take responsibility in inviting relevant experts who can provide thorough training for enhancing the skills and aptitude of their employees. Knowledgeable sessions with the industry experts/experienced professionals will broaden their outlook and bring some much-needed variations into their thoughts. Hence, HR managers should care about employee development programs to nurture the employees. This will also make the employees more loyal to the organisation.

How work scheduling is done in E-commerce

Before knowing about how to engage staffs in the E-commerce industry, it is important to have knowledge about the scheduling and assignment of work among the staffs. For every department, there will be a different set of workers assigned to carry out their scheduled tasks. There are a definite set of rules that the workers from every department have to follow.

As an organizational unit, the E-commerce industry holds the responsibility for creation and maintenance. The capabilities of the E-commerce industry cannot be explained in terms of project activities as happens with IT organizations. No such definite organizational work pattern is observed in when it comes to the E-commerce industry. The different set of projects /programs/work assigned in different departments depends on the overall E-commerce objectives of the organisation. The nature of E-commerce sites also varies according to the mode of work or the type of projects being handled. These sites are dynamic in nature and are prone to frequent changes.

There is not a single pattern that describes the method of hiring employees for the E-commerce industry. Selection is done on the basis of their capabilities. However, depending on the type of projects, the nature of requirements differs. For example, the IT-based E-commerce industry will be more concentrating on the employees having greater knowledge in the field of technology. However, the success of any project not only depends on technology but also on the business skills of the company. The combination of both business talents and technology can contribute to the successful completion of a project. In most cases, the organization forms new working operations for their new businesses. This can also be called as the hybrid behavior of the E-commerce industry. It will be great to observe if the recruitment programs of an e-commerce project resemble the other either in structure or content without considering parameters of departmental governance. The type of governance is selected on the basis of the skills of the employees, project needs, the mode of work done and the outcomes required from a particular set of projects.

 

Challenges in personal consulting in e-commerce

Though the E-commerce industry has evolved as a fast-growing industry, it has to overcome a few challenges in personal consulting. These are described below-

  1. Technology challenges- For an e-commerce firm to achieve success in today’s highly competitive world, technology is the most important factor. So, the firm should be able to accept new innovations and technological expertise, which will allow them to overcome threats/hurdles in time.

 

  1. Uncertainty challenge– There is no specific model for an e-commerce firm to get going. The already settled E-commerce organizations also do not have ‘strait-jacket’ corporate mind-sets that hold them back from fulfilling their dreams. There will always be an uncertainty challenge for this industry. This challenge can be overcome if they are able to invest in new innovations, experimentation and also if they are able to tolerate failures.
  2. Integration challenge– To meet the demands of this fast-paced consumer-centric world, the e-commerce industry needs to integrate various systems, the people working therein and different processes in a seamless manner. The personal consulting processes in this industry need to keep this in mind while formulating their HR policies.

 

  1. Speed challenge– The speed of a firm increases very rapidly with the changing demands of people and technology. The traditional businesses consume more time to adapt to these changes but not the ecom businesses. Therefore, the HR operations in the e-com industries need to be more pro-active than their other business counterparts and should be able to adapt to these changes much faster.

 

  1. Project structure challenge– No two projects in the e-commerce industry are the same. Hence the firm should be able to construct a perfect group of individuals for a particular project to ensure efficiency. This may involve constant shifting of people from one project to another. This is bound to put an extra burden on the HR team.

The success of the E-commerce industry not only depends on its demand but also on how it will be able to withstand the HR challenges that are so unique to e-comm operations.

Logistics and of E-commerce: their inter-dependence

The term Logistics means management of the path through which various resources are obtained, gathered and then shipped to their respective destinations. Well-managed plans need to be in place for controlling the mobility and placement of the goods. All these plans and processes come under a system that is designed to obtain the desired organisational goal.

A proper logistics management can help the e-commerce industry in the below-mentioned ways-

  • To find out capable suppliers and distributors.
  • To determine their accessibility and efficiency for the need of business production.
  • To form valuable relationships and discover the most economical solutions for the success of the business.

 

Role of HR personal consulting in logistics/supply chain organizations

Here we will discuss how crucial the role of HR personal consulting can be in different facets in a logistics/ supply chain organization-

  1. Keeping an eye on the overall performance parameters–

The role of supply chain management is to bring the goods in and to keep them ready/forward them for the next phases in the pipeline. In the same way, it is the duty of an efficient HR management to ensure that every employee gets the inputs in a proper manner so that he can execute his assignments properly. This will make both the organization and the employee to grow together in their respective operational areas while keeping a close bond with the values and culture of the organisation. HR does the important function of supervising this entire process. He also ensures that each and every manager is competent enough to understand various processes prevailing in the organization. The HR prepares a periodic MIS on the performance of the employees and also that of the ongoing processes in the organization.

 

  1. HR Role in streamlining the hiring process–

We are well aware of the critical role played by the SCM department in bringing in and sourcing out raw materials. In the same way, HR has to take the responsibility of bringing in outstanding talents which are very essential for ensuring smooth operation of the business. HR teams need to carry out the necessary brainstorming with other departments to make sure that all the significant processes are taking place as per the schedule designed before the functional department makes the all-important final selection. The critical task the HR needs to do here is to make sure that a well-designed and standard capability framework is followed across the organizational lines. The HR needs to keep an eye so that the hiring of deserving talents moves through a consistent process, adhering to the well-established benchmarks of cost-effectiveness.

 

  1. Play the role of a quality checker

 

In a logistics business, it is absolutely essential that the goods should go through a proper quality test before the all-important delivery to their respective destinations. It is the duty of the SCM team to ensure quality assurance before the goods are transferred to the next step in the pipeline.

In the same way, the HR team has to check whether the entire transformation of input to output is happening as per the prescribed design and expectation of the organization. It needs to assume the role of a quality enforcer in some critical business checkpoints. In this way, it can increase the efficiency of every individual.

 

  1. As a Conscience keeper–

HR plays another important role as a conscience keeper of the organisation. It keeps an eye on the organisational operations and does a periodic assessment on whether they are carried out in conformity to the stated organizational values. He should use his authority and intimate all concerned if there is a marked diversion from established organisational objectives. The HR function should be given the authority required so that it can work in close collaboration with the CEOs /top management/leadership teams and convey its findings in a ‘no-nonsense’ manner.

  1. To keep pace with the industry compensation benchmarks 

HR plays an important role in keeping a track of the compensation benchmarks in the industry and to keep the organizational policies in sync with them. It is also their responsibility to implement policy changes in a seamless and consistent manner.  Overall, the HR functionalities in logistics and e-commerce are largely multi-dimensional and are not restricted to their core competencies alone.

Benefits obtained by SCM after applying effective HRM methods

In the above section, we have seen that there are some similarities between the HRM and SCM functions. Some benefits of implementing effective HRM practices can be as follows-

  1. SCMs can use ‘people’ in a more efficient way-

The supply chain is a highly complicated structure which includes the raw materials distributors, suppliers of raw materials, the service providers etc. It is a well-settled fact that the success of a logistics organization depends heavily on the success of the people involved in every step of the supply chain management. The evolving field of HR has initiated some effective methods and processes that not only help the people but also the organization as a whole. These methods and processes can also be applied in the supply chain management as well so as to attain their desired goals in every phase of their operations.

  1. HRM methods can make the supply chain systems more collaborative-

Today’s business environments have become highly complex. This may be due to the globalization of the inventory market, products having smaller life-cycles, product generation and so on. Effective HR methods can ensure high-degree of collaboration between different SCM stakeholders, foster better inter-firm alliances and design valuable knowledge sharing techniques. By this process, the organisations can have a more up-to-date and organized supply chain and achieve the competitive advantage they are vying for.

 

  1. To receive proven benefits of HR strategies

HR strategies are concerned about establishing highly flexible organizational policies and systems and to strengthen the business actions of the company. An amalgamation of these HR strategies in SCM will provide significant benefits such as better coordination with SCM associates, better prognosis of the supply or labor demand across the logistics operations and many more.

Organizations have realized that chalking out a clear career path and providing diverse development opportunities for employees can help a great deal in retention of quality employees in today’s competitive environment.

 

 

Supply Chain Recruiter

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Supply Chain Recruiter

 The supply chain management is the heart and soul of any company. Be it manufacturing or packaging or retail industry, supply chain is a critical component of every business. Every supply chain is a network of multiple related channels of operations like purchase, production, transport, warehouse, inventory, etc.

With ecommerce taking the market by storm, supply chain management is experiencing a shortage of skilled, talented manpower at all levels.The demand for supply chain managementexecutives is growing but specialised and experienced professionals are hard to find. In short, there is a dearth of accomplished and competent manpower in the supply chain management sector. To fill this gap it is essential that a proficient supply chain recruiter is engaged to hire such manpower.

Supply chain recruiters are not just head-hunters, they are analysts too. Supply chain recruiter must predict the supply chain market developments and source candidates matching the profile. Talent supply chain management recruiters must have a sound knowledge of the supply chain management process. They must be active, responsive and must possess thorough knowledge of the supply chain management process.

Requirements of a supply chain recruiter

  1. Process knowledge: A supply chain management recruiter must know the supply chain process on his backhand. Every supply chain is different. They differ in size, complexity and execution. Different supply chains require different proficiency of operations. A supply chain recruiter must recruit candidates not only on the basis of skills and qualifications but also on the basis of job quantum that the candidate has handled. For this, it is essential that the recruiter is well aware of the entire supply chain cycle and related channels associated with the supply chain.

 

  1. Assortment: Supply chain management requires manpower at all levels. From entry level workers to managerial positions, a single supply chain needs discrete individuals for carrying out different work. The man force at different levels need specific skills to run the supply chain smoothly. The supply chain recruiter must be able to source candidates at all levels from junior to senior ranks.

 

  1. Industry updates: With everything getting automated and majority of the tasks carried out by artificial intelligence or with the internet of things, it is necessary that the recruiters keep themselves abreast with the supply chain market developments. They should hire manpower that are tech savvy and trained in the latest technologies being used in the supply chain industry.

 

  1. Cost efficient: Supply chain costs can be a real burden on the business if the system is not strategically aligned. The recruiter must not only be efficient but he must also be cost effective. Due to scarcity of subject matter experts in the supply chain domain, the recruitment cost can upsurge if the jobplanning and allocation is not done properly. The supply chain recruiter must be able to identify the areas in the supply chain which require full time employees and which require part time employees and also areas that can be outsourced to a third party agency to reduce expenses.

 

The supply chain plays a decisive role in meeting the market demands and delivering the goods on time to the user in the right condition. The right candidate at the right place at the right time can make the right difference for your business. So, choose your supply chain recruiter wisely.

HR Consulting in Industry 4.0

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HR Consulting in Industry 4.0

 

 INTRODUCTION

 

The industry is an integral part of any economy.  The mechanization of industry started with the First Industrial Revolution. The Second and the Third Industrial Revolution actually introduced the use of electrical energy, along with electronics and automation. However, driven by social, economic, political and technological changes, today’s economy is said to be facing the Fourth Industrial Revolution. This type of industrial revolution is known as Industry 4.0, which is credited to have brought a wide range of digital transformations in every existing industry or business. This has also brought important changes in the current processes replacing the manual business operations by digital computer structures.

The concept of Industry 4.0 was first introduced in 2011 at the Hannover Fair. Originally, it was a proposal for the growth of a new idea of German economic policy based on high-tech manufacturing plans. Many industries have since embraced the concepts Industry 4.0 and have extended these smart changes into diverse areas such as logistics, smart buildings, oil and gas, smart healthcare and even to smart cities.

The main concept of Industry 4.0 is that the industrial business will be built by global networks in the future which will connect their machinery, manufactures and warehousing facilities as cyber-physical systems and will also control each other intelligently by giving out information and data processing that will head suitable actions. These cyber-physical systems will take the shape of four smart changes which is smart factories, smart machines, smart storage facilities and smart supply chains.

 

 

  1. Significance of Industry 4.0

 

The major significance of Industry 4.0 lies in the creation of a communication pipeline for the constant and real time informational exchange with retailers, manufacturers, health care workers, co-workers, customers themselves etc. Its main mechanism is the dependence on machines that will stream data via wireless sensors and then sending these data to smart services or product providers and decentralized multiple small centers, where large amounts of data are analyzed. The benefit of such automation is the individual customer-oriented transformation of products and services that increases the value for both the concerned organizations and customers. With the use of electronics and information technologies in manufacturing and services, all processes have become fully atomized and digitalized during the Fourth Industrial Revolution. Small and medium industries have been significantly transformed by new age technologies such as 3D printing and new sales online services. But if we look through the customer point of view, the main benefit is personalized service or product in real time, which leads to satisfaction and loyalty benefit in case of provider companies. On the other hand, companies have to understand how associated consumer products and services can perform as a critical basement in their decision-making process.

There is a common misunderstanding that Industry 4.0 benefits only the manufacturing industries but it will also benefit the manufactures. Manufacturers are the prime focus of Industry 4.0’s but it will also influence its other contiguous areas. It not only has an impact on the local cyber-physical systems and local industrial processes but also on the entire value chain, including the producers and manufacturers, suppliers, and workers.

Two of the main tools that accompany the Industry 4.0 revolution are the smart factory and smart manufacturing, which is also known as intelligent factory or factory of the future. In this field, the manufacturers are well equipped with sensors, actors, and autonomous systems. The introduction of new technologies, machines and equipment will improve all the technological processes autonomously through self-decision making and optimization. This will result in self-organization of the manufacturing process which will change the logistics and production chains.

Another important idea of Industry 4.0 is the smart city concept. A smart city is also known as the city of the future which consists of six components such as the smart economy, smart living, smart people, smart governance, smart mobility and smart environment. It should be an outcome of seemingly faster development of the ‘next-Gen’ IT and traditional economy. It will be related to the effective assimilation of the Internet, broadcast network, telecommunication network, wireless broadband and other sensor networks with the Internet of Things (IoT) technology at the center.

In addition, Industry 4.0 involves the attainment process of materials and describes as to how a product moves through the production and delivery process to the customer. Deep analyses of the current execution of new technologies were made in the production sector to comprehend the evolution of the industrial workforce with that of Industry 4.0.  Nowadays the main focus of the future industry is on the interaction of its constituent elements in production and the final products are created with as much automation as possible, to go with the present technological progress. New technologies are an integral part of our daily life. It is also important for expanding more with further development of the Internet and technologies such as 3D printing, customized products, greater online sales services etc.

 

 

The added advantage will be seen more in the new products and new solutions in a foreseeable future. Each of the objects produced can be possibly connected and networked. As a result, different business will be designed that involves the use of the Internet and connectivity. Industry 4.0 manufactories will increase their productivity and competitiveness which in result will enlarge their industrial workforce. Many technological changes will occur which may include execution of Cyber-Physical Systems (CPS) for production, smart manufacturing, embedded actuators and sensors, augmented reality, networks of microcomputers, and linking the machines to the value chain and so on.

 

Once these changes are implemented into a business, manufacturers will be able to create new jobs with the adoption of Industry 4.0. Although the type of job and the required skills will vary depending on the manufacturing process and the use of new technologies, the demand for new skills (catalyzed by new technological changes) will help the emergence of new jobs. Apart from the manufacturing industry, Industry 4.0 has impacted the oil industries a big way of late.  Many giants in the energy sectors have also embraced the Industry 4.0 processes into their operations and they have found immediate results, particularly in the areas of energy storage and the deployment of renewable energy.

Thus, it is only sufficient to say that Industry 4.0 will definitely bring about significant transformations into the economic sector and also to the social and political landscape as a whole.

 

 

  1. Industry 4.0 and HR practices

 

Because of the benefits of globalization and increased collaboration between EU, US and Japan and other countries, the industries have changed a long way, with the global spread of Industry 4.0. The Fourth Industrial Revolution has been able to give a complex vision on future of the industry that includes the use of Big Data Analytics, interconnected machines, connected devices, cyber-physical systems, cloud computing, software and Industrial Internet of Things (IoT). The HR domain of organizations has not been resistant to this phenomenon either.  HR practices have also taken a leaf out of the global smart practices shown by Industry 4.0 and a new area called Smart HR 4.0 has got evolved. Smart HR 4.0 portrays a bright canvas for digital transformation in the HR functions of recruitment, learning and development, social sharing etc.

Smart Human Resources 4.0 is a new idea which is growing as a part of the overall 4th Industrial Revolution and is distinguished by the innovations in digital technologies such as Big Data Analytics, Artificial Intelligence and fast networks such as 4G and 5G. With significant changes due to come into effect in the future, HR 4.0 will have its own set of execution challenges and sets of benefits. These benefits will, of course, depend on how the concerned organization adopts it.

The benefits of Smart Human Resources adoption are:

  • To attract, develop and employ new age talent.
  • Systematic and faster HR operations.
  • Slender HR departments.

The HR department of any organization is responsible for handling all the related aspects of the employee life cycle, from recruitment to exit. HR plays a key role the in organizational growth. However, most of the departments in HR across different organizations today are seen to be playing only an operational role. This resulted in highly inefficient processes which are further worsened by inadequate technology infrastructure. On the other hand, technology is experiencing rapid changes. The new age technology such as the Internet of Things is enabling the digital world to be connected to physical things. This resulted in the generation of a huge amount of real-time organizational data which is guided by massively scalable storage capacities simultaneously using cloud technology.

Not only technological innovations, but the industry is also witnessing vast changes in employee generations joining the organizations.

Smart human resources 4.0 is powered by the new generation employees and new technologies. The employees have the potential to transform all the HR processes taking into account the aspects of talent onboarding, talent development and talent off boarding.

 

Just like any other concept, the incorporation of Smart HR 4.0 practices is not without its fair share of challenges. Smart Human Resources execution challenges can be explained as follows:

  • Firstly, in selecting the correct set of new technological tools.
  • Dealing with the present organizational culture.
  • Handling employees’ expectations.

 

Another important point to consider here is the changing nature of HR practices due to the influence of Industry 4.0 processes. If we take the example of the industrial production sector, we will observe that significant changes have taken place in the industrial production processes during phases of industrial revolutions. Firstly, we saw the advent of steam power generation; then came the use of electricity and now is the time for automatization. However, we need to keep in mind that the technological waves did not decrease the overall employment rate at all, in spite of the widespread preference for automatization. Instead, it has experienced a gradual growth during this time. Although there has been a dramatic reduction in the number of manufacturing jobs, new jobs came into existence to suit the new skills demanded by the new processes attached to the Industry 4.0 practices. It is expected that HR practices in the manufacturing and industrial production ( along with all supported business) will see major changes with the advent of upcoming digital disruption. The production business will become increasingly capital intensive and the labor cost advantages attached earlier to the traditional pockets of low-cost areas will be reduced significantly. This is going to impact the HR consulting in this industry a big way.

Industry 4.0 has been able to bring in important changes into the industries, more particularly into the way jobs are executed by the industrial workers. As a result, scopes of certain jobs have got completely changed, while some kinds of jobs have totally disappeared. Some companies have also developed plans to replace some of the human workers totally with robots to assist the workforce. There will be a significant decrease in the number of routine or physically demanding jobs as well.

While there will be an increase in jobs that require problem-solving, flexible responses and customization-investments and constant change are the main challenge faced by industry HR 4.0 as there is a need to build a complex value network that produces and distribute quality HR products.

 

 

  1. Conclusion

An organization, on the other hand, requires a successful Smart Human Resources 4.0 strategy so that it can cope up with the Industry 4.0 transformation challenges. Big Data and AI are such emerging technologies that will automate most of the HR processes in an efficient and leaner HR team. The next generation talent will be attracted towards the organization through smart mobile apps along with AR/VR. This will also facilitate smart remote interactions between teams. The changes in both the organizational structure and leadership style would be required for efficient Smart Human Resources 4.0 implementation. This will also allow the HR departments to play a more planned role in the growth of the organization.

 

 

 

HR Consulting in Industry 4.0

 

 

 

 

 

 

 

 

 

 

 

Digitization in supply chain management

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Digitization in supply chain management

Industries nowadays are becoming more transparent with regards to how their management is run and the supply chain is no exception.  Customers are also becoming more demanding for efficient delivery processes and are becoming choosy about the mode of accessing products. The advancement of digital technology has really been the driving force for these changes.

How to make a supply chain system more efficient?

It is quite a difficult task for companies to develop an efficient supply chain system. It is quite impossible for companies to develop a supply chain without a clear idea of the process and applications and a certain amount of strategic planning. The company should try to improve its systems based on their current business situation and also on the basis of evolving business ideas. These new and improved ideas should be implemented in all spheres of their business operations including (but not limited to) the below-mentioned avenues-

  1. Processes– The company need to implement these new and improved methodologies to connects the suppliers and the customers in a better manner. This will help in proper coordination and collaboration between these two important stakeholders.
  2. Performance management system– The company should necessarily set up some specific rules and regulations to enhance the performance of those who have the responsibility to manage the entire supply chain. All the important performance indicators should be measured timely to ensure better results and make the supply chain system more efficient.
  3. Developing the organizational skillsets– the company needs to understand various skills that are required to enhance the performance of the entire supply chain. These may include the skills of problem-solving by optimizing or managing the entire supply chain. This may require strong organisational support to promote relevant communication across different organisational user groups or programs. However, for extracting maximum benefits from such activities, the company has to develop its in-house talent and experiences. Then only it can ensure continuous development of new supply chain applications and processes.
  4. Enhancing stakeholder capabilities– In addition to enhancing the capabilities of their in-house resources, the company also needs to develop the capabilities of its partners and stakeholders. The supply chain just cannot achieve their set objectives of developing a well-oiled system without the help of their partners or the stakeholders such as suppliers, technology providers or even the distributors.
  5. In leveraging advanced technology– as already discussed, the company has to develop a road map for effective implementation of the new and advanced technologies into the supply chain. A few such operations include the integration of the information layer, analytics capabilities the database and the cloud.

 

When it comes to the supply chain industry, most of the companies are delivering their products to their customers through a standardised process. The marketing branch of the company places orders and the ordered products are prepared for distribution. At the same time, the respective customers are given the requisite information regarding their product and its shipment. It is necessary for the operation to take place smoothly so that the customers can expect their shipment on time. But, it does not happen as smoothly as desired, all the time and inadequate information is the ‘culprit’ for the same. For example, at times, the necessary data which is necessary for forecasting may remain insufficient. In some of the cases, the manufacturing branch of the company may not get sufficient help from the suppliers or other relative partners due to lack of timely information in critical links of the supply chain and there arises a gap between the operation process and the requirement. The whole supply chain is interrupted this way.

How can digitization help?

There can be many concrete examples of benefits brought about by digitization into a supply chain system. Enhancing productivity and growth of work are two broad benefits of digitizing the supply chain.

Given below are a few of the benefits digitization can bring to the supply chain management-

  1. In the process of capturing data-

The Internet of Things (IoT) is a boon of modern technology that is capable of making data available in a more transparent manner. Thanks to IoT, manufacturers are now able to gather data with the help of sensors. These data are essential for monitoring important supply chain assets. This results in lower downtime in data capturing and helps the company to manufacture products so as to meet the demands of their customers.

Data captured so efficiently brings transparency to transportation and logistics as well. Barcoded products manufactured by a company can be tracked by both the company and the customers alike. Moreover, internet of things has also enabled new tracker facility that can track not only the location but also can capture data regarding the temperature, orientation, humidity and other such variables that can cause a positive impact on the entire delivery system.

  1. In analysing data–

Digital concepts such as e-commerce are providing big data and it helps in the improvement of process management, product customization, market trend predictions, quality levels and customer personalization. For example, this new-found process of analysing data can help in providing new data routes for freshly observed patterns which, in turn, can identify more routes with fewer shortcomings.

  1. In integrating data–

The most significant contribution of digitization to supply chain is perhaps achieving higher levels of clarity at all stages of the process. Data is contained in different ‘blocks’. It is necessary to capture the required data, integrate them and then analyse them effectively in certain specified steps. The method of integration may involve the following steps depending upon conditions-

  • systems involved in integrated planning and its execution
  • advanced analytics
  • logistics visibility
  • smart procurement and the warehousing

Advanced features of digitization are employed in all these stages to bring the much-needed transparency into the supply chain.

  1. In accessing data–

The integrated units of any supply chain management depend on data accessed. These data need be transferred eventually to the end-customers. With the advent of digital technology, the data transferring process has also become quite easier. Now, the customers can keep track of their shipping experiences from their own comfort, thanks to features of digitization.

  1. In interpreting data–

If real-time data can be obtained, it proves to be very useful for any supply chain management. But, one of the major drawbacks here is the achieving of the desired accuracy level and reliability of data. Digitization has been of tremendous help here as it has offered the facility of correcting the data automatically and even enhancing reliability in supply chain technology.

  1. Comprehensive integration of solutions involved in the supply chain– as the supply chain is a vast territory, companies nowadays often vary in the planning or reporting of production related data. Digitizing the process of the supply chain is a great approach that removes many hurdles faced in all SCM systems down the line. But it requires a strategic approach for the digitization plan to be executed properly. If such a strategy is executed properly, there can be many benefits for the company and many inherent faults can be eliminated, which, if not eliminated, have the potential to deviate the processes from reaching the organisational goal. Digitization helps in setting certain benchmarks and fixing of organisational goals properly. Such integration helps the works to be accomplished in a proper manner. But, it is very important for the companies to keep a track on such integrated solutions and measure the performance at every stage, in order to avoid eventual failures.
  2. Helps in better handling of data- The Internet of things has reached its greater heights with time and, in recent times, has become an integral part of supply chain management. Better solutions to perennial supply chain issues have been possible now, thanks to IOT. Now, the supply chain can be digitized involving operations such as collecting of data, sorting and finally evaluating the data. As a result, it helps the managers or the planners of the company to make more effective planning ideas. Effective methods of data connection are also helping the managers or planners to deal with circumstances which used to plague the management a lot in earlier times. The IoT based technologies employed to supply chain involves a lot more detailing, and hence can save the management from critical situations happened earlier due to lack of attention to such details. Now, IoT based data handling methods enables the management to deal with all such issues and complex datasets in a more efficient manner.
  3. Helps in enhancing collaboration– Digitizing the entire supply chain may not prove to be an easy task at all. Of course, it involves hurdles and complexities while implementing it across the organisational spheres. But, it is more than worth doing so as through digitization, the planners can share the data within themselves and within the supply chain stream to ensure smooth functioning of the operational cycle. Digitization facilitates more interactions and such a collaborative approach can save the organisation from breakdowns or disruptions. A digitized supply chain actually works a kind of central hub that includes a lot of data which can be accessed through multiple nodes. Unlike the traditional system, no one has to wait for days or months to collect or gather the requisite data. Results can be obtained much faster, rather than waiting for months. Thus supply chain digitization can deliver proven benefits for the supply chain companies.

Steps or phases involved in digitizing the supply chain process-

One of the important ideas involved in digitizing a supply chain is to be clear about its sustained benefits and whether the existing SCM processes in the company are capable enough for implementing and integrating changes likely to facilitate by digitization. Therefore, any supply chain company may go through the following five major stages in the process of digitization-

  1. It should understand the present position of itself– the company should be able to assess its current position and the level of maturity it has attained with time. It should also be able to identify the areas that need further improvement and maturity.
  2. It should be able to define its strategies properly– The company should be able to set a target for the supply chain management well before the implementation of digitization starts. It should also envisage the possible strategies and planning involved in the process of digitization.
  3. It should develop a proper road-map – The company should be able to define the necessary steps required for digitization and sketch a detailed road map accordingly.
  4. It should develop small pilot applications with end to end scope– A company may devise some small pilot applications that can be helpful in digitizing the entire supply chain in due course. These pilots should be able to carry out the necessary steps within its scope, however small they may be. Such a pilot application will help in assessing the capabilities of the company for digitization. But, the company needs to keep in mind that such pilots should be used in integrating the digitization in supply chain only, rather than for fixing other organisational goals.
  5. The company should do rollouts and monitor their development– After successfully developing pilots, the company should do a few rollouts in certain segments. Then it should monitor the progress of these rollouts and assess which segments are benefitted the most from the digitization. This rollout can even be extended either to some important regions or particular customer segments as desired by the company management.

 

Assessment of maturity in the supply chain-

Most of the supply chain companies in the present day have successfully implemented certain levels of digitization in their operations. Before extending higher levels of digitization, it is very important for the companies to study its current maturity level in order to devise a specific plan for the next level of supply chain digitization. The maturity of a supply chain can be witnessed in four stages as discussed below-

  1. Digital novice– It indicates an immediate need for improvement to sustain in the business. Companies at this stage need to proceed further to the next level of supply chain digitization at the earliest.
  2. Vertical integrator– At this stage of digital maturity, the companies manage to integrate various processes of supply chain digitization into different departments or functions within their spheres of operations.
  3. Horizontal collaborator– The companies, at this stage of their maturity, have gathered required information that can help their supply chain partners to set up their goals and objectives. Such expertise and control help all stakeholders to carry out their processes easily and to bring the much-needed transparency into the entire supply chain operations.
  4. Digital champion– At this stage, the company has achieved the greatest level of digital expertise possible in association with its partners and has managed to be more transparent in their operations as well. This has been done by developing some beneficial digital processes and techniques and implementing them seamlessly in the entire supply chain management.

 

Some examples where digital technology has been helpful

A wide range of ideas of various technologies are mentioned below, which are integral parts of digitization. These have come to immense help to the industries.

 

  1. 3D printing – 3D printing is used in widely used in manufacturing these days. The scope of 3D printing in the field of pharmaceutical and healthcare logistics has enforced a dramatic change to the supply chain strategy involved therein. Many production industries like Johnson and Johnson, Invisalign etc have leveraged 3D printing technology into good effect and have excelled to greater heights of late. Other companies are also following suit and the concept is 3D printing is expected to grow even more in a foreseeable future.
  2. The fast growth of ‘Uberization’– When Uber first came into the market with its unique concept, it was not able to penetrate that much into the existing market share. But, with time, Uber has been able to leverage the technology disruptions to good effect and made distinct changes into their operations, to accommodate modern technology. It helped their operations so much that, in two years, the worldwide market share of Uber rose from 8% to 27 %.
  3. Internet of Things and machine learning – These technologies are among the most evolving technologies in modern times. These are being leveraged in the SCM industry to fulfil the needs of the digital supply chain for the future. These technologies offer various advantages related to costs, operational efficiency etc to the supply chain companies.
  4. Advantages of cloud computing– Cloud computing came to prominence after 2016. A cloud provides distinct advantages when a supply chain organisation wants to set a benchmark in its data acceptance level. It is because cloud computing enhances the computing power and application systems of a supply chain. A cloud computing framework also increases the efficiency of the software systems. But, its development requires a lot more time.

 

Digitization is nothing short of a revolution nowadays. Transforming everything to digital is challenging indeed. There are many avenues of digitization that may find a place in supply chain systems.  Advanced robotics, 3D printing, drones, internet of things etc fall under this category. But, it would have been better, if such technologies can be customised to some extent. Also, the capital involved in the maintenance of these technologies is still a concern for the companies.

Digitization in supply chain management

Top 10 Future Trends in Supply Chain and Logistics

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Top 10 Future Trends in Supply Chain and Logistics

From the first wheel in the Neolithic age to the modern automated driver less automobiles, the logistics segment is ever evolving. Wheel was definitely one of the greatest invention made by men after the invention of fire.  The invention of the wheel evolved transportation and has given rise to the modern day logistics industries and to the ever growing dimension of the supply chain management. Advanced technologies, globalisationand digitalisation of processes has resulted in immense metamorphosis of the supply chain cycle. Today, we shall discuss 10 future trends that will definitely make an impact on the supply chain segment in the coming years.

  1. Customer segmentation:Logistics industries have shifted from the traditional approach of segmenting customers on the basis of age, gender and occupations. The trends predict that customers must be now segmented on the basis of their purchasing and delivery needs and requirements.
  2. Risk Management: Reduction and mitigation of risks will remain a top priority for Supply chain managers. Legal requirements, risk screening and elevated diligence by interested parties have created immense pressure on the supply chain industry to prioritize risk management.
  3. Digitalization: The application of digital gadgets to redesign the supply chain management operations will remain a popular trend in the logistics industry. Reliability on automated digital applications minimises human intervention and error.
  4. Robotics: Widespread adaptation of advanced technologies, artificial intelligence and robotics will increase across the supply chain cycle. Robotic process automation or Artificial Intelligence allows the logistics companies to cut down on costs, eliminate errors and relieve the workforce from strenuous and repetitive physical tasks.
  5. Reverse Logistics: The supply chain industry has shifted from a linear supply chain to a circular supply chain. Used products are now sent back to the supplier for re-use via reverse logistics. This has brought about higher sustainability and increased customer loyalty in the supply chain industry.
  6. Real time inventory management: Sensors and POS machines can capture inventory at real time. This streamlines the supply chain process and reduces inventory hold time. When everything is tracked through internet sensors, it also minimises loss of products.
  7. Visibility and transparency: Futuristic supply chain leaders can incorporate better visibility into their supply chain process and create transparency to enhance the customer delivery experience. Transparency provides strategic foresight to the business and allows innovation with the suppliers.
  8. Real time tracking: Real time tracking of the cargo and transportation enables the manufacturing plant, warehouse and supplier to work in collaboration and plan their business needs accordingly.
  9. Block chain technology: With the ever expanding global economy, there is bound to be a resource scarcity at many levels. Logistics companies will utilisedecentralised block chain technology as an advanced alternative to substitute for the same. Block chain technology can be used to store records, manage expense statements and verifycustomers at the receiving end by storing their IDs through block chain technology.
  10. Data driven approach: Demand anticipation is now done on the basis of data analysis and not just market prediction. Predictive analysis backed up with data captured from the current buying trends in the market will provide deeper insights into the market demand and supply ratio.

The supply chain industry is highly competitive and fast paced. The wheel has to keep moving forward. Business leaders must plan in advance and apply these trends to keep ahead in the global market.

Top 10 Future Trends in Supply Chain and Logistics

Lean logistics – Why is it important

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Lean logistics – Why is it important

 

Lean logistics- What is this?

Organizations these days make concerted efforts towards improving their inherent business processes as they have realized that it gives them that all-important competitive advantage in an otherwise ‘cut-throat’ supply chain market. Reduction in inventory, time and cost are important ingredients of this improvement process and lean logistics is used to ensure the same in a faster way.

Simply speaking, lean logistics is the method of recognizing and removing wasteful or redundant activities from the existing supply chain in an organization, in order to enhance the delivery of products and services.

Lean logistics – why is it important

Before comprehending the importance of lean logistics, we need to know about the concept of ‘lean thinking’. This concept has its roots in the widely-acclaimed manufacturing methods applied by Japanese automakers. Lean thinking thrives on the idea of eliminating inventory in any form, from all organizational processes. It regards any inventory, which is not in accordance with the customer/organizational needs, as waste and tries to minimize it.

Toyota used this concept in its manufacturing process successfully to counter a shortage of resource. Soon other companies followed suit and started employing lean thinking in diverse areas such as product development and supply chain management, in addition to manufacturing.

Lean thinking is beneficial for customers too. As it always looks for maximizing the value of products/services and perfection by eliminating waste, it ensures that customers do not need to pay for the lack of organizational efficiency and organizational waste, if any.

Lean thinking has its utmost impact on the field of logistics. If an organization incorporates this useful concept into its SCM operations, it can experience immediate benefits from improved customer service, reduced environmental impact, in addition to other associated benefits of waste minimizations the elimination of waste from organizational processes reduces inventories, process time and cycle time get reduced significantly. This also helps to increase the overall flow and velocity of the supply chain.

By focusing on the value of “total cost”, lean thinking makes a big cultural impact on the entire logistics and SCM operations of a company. What separates the lean thinking is that it focuses more on the complete ownership cost, instead of emphasizing on individual cost components such as transportation or warehousing. Making important cost decisions based on total ownership provides important logistical advantages for an organization. This is so because carrying of inventory usually constitutes about 25 to 40 % of the total logistics cost and the company can make significant savings through lean logistics applications. Without this approach, organizations are forced to keep more emphasize on individual cost factors such as transportation, warehousing and obsolete sourcing practices.

Why is acquiring talents in logistics becoming a challenge?

The logistics and manufacturing fields find their place among the oldest in the world but it has been a heck of a challenge to recruit quality personnel in these fields. Many logistics giants have revealed that it has become increasingly difficult for them to recruit and maintain top-tier talents in critical lean logistics jobs as well. There is a ‘un-announced’ war for quality talents in this industry which has defined and reshaped organizational strategies for recruiting and maintaining logistics personnel. The higher demand and expected turnover of quality lean logistics employees are also contributing to this problem.

The dynamics of the SCM industry is fast changing. A lot of accompanying factors such as a narrow labor market, Baby Boomer attrition, implementation of modern technology, e-com revolution and so on are pushing the logistics operations beyond boundaries and the management are forced to redesign the way they recruit and retain their valued employees. Supply chain leaders are now thinking in terms of hiring personnel within the organization itself and preparing them for critical logistics roles through adequate training and mentoring procedures. Many logistics companies have started investing in these programs and have also started to look for other futuristic avenues to counter this problem.

The great news for new graduates is that they can look into the logistics and supply chain as a more rewarding career option. Though it was thought to be a manual labor job traditionally, the perceptions have changed entirely of late and it is widely seen as more of a white-collar job these days. Gone are those days where the bulk of the work in logistics operations consisted of heavy and manual work. These days, these have been replaced by highly automated technology which has made distribution and manufacturing environments much better places to work in.

As per a report by the Bureau of Labor Statistics (BLS), the logistics jobs in the U.S. will grow by 26 % in this decade, by the end of 2020. Unlike other markets, the impact of unemployment in logistics is significantly low. Rather, there is still a dearth of quality workers in this market and this is contributing to a huge demand for logistics/supply chain professionals and the industry is yet to come to terms with this demand. The existing logistics/supply chain workforce is also finding it difficult to keep pace with increasing customer expectations for faster delivery, fuelled by the far-reaching impact of modern technology and a stronger focus on speed. All these factors combined, specialized and quality workers have been kept on high demand and employers are left with no option but to recruit and retain the best of the talents, even with a more inflated HR budget than ever before.

 

Here, we will discuss what top companies can do to encourage people to work in logistics-

Attract new working professionals through adequate training

Recruiters should first conceptualize the characteristics, traits and behaviors of a new working professional/employee and should figure out whether he/she is the best fit for a critical logistics role or not. Then informative and engaging training programs should be formulated to attract the attention of such professionals. The field of logistics is an evolving one and new technologies, business models and improved processes keep coming into the systems every now and then. Therefore, professionals need to possess the necessary expertise/knowledge accordingly. An adequate training program can satisfy this need of professionals and such a prospect can attract the best logistics professionals towards an organization.

Training can play a major part in an existing employee-management set up in any supply chain organization as well. Finding quality talents in SCM operations is a challenge faced by most organizations these days and hence, nurturing talent development is critical for companies. It is quite hard to get and train replacements for critical SCM positions which require specific skill sets including knowledge of technology and business process.  An efficient and well-planned cross-functional training can be a good ‘antidote’ to such issues and will go a long way towards improving organizational resiliency. Training programs will also help in accurate skill assessment of individual employees and possible skill gaps can be identified with ease. Training programs can be designed according to meet the personal objectives, timelines, learning pace and style of individual participants – in order to maximize the outcome.

 

Establish relationships with schools/institutions

Forging tie-ups with adult education centers, schools and vocational institutions can be another way to bring and encourage young or entry-level workers to the field of logistics. Supply chain companies often look for fresh college graduates for entry-level positions and can recruit such graduates through campus interviews.

Relationships can be developed with business schools (that impart education/programs in supply chain management) to provide quality manpower for managerial positions. Organizations can provide apprenticeships or paid internships to students specializing in supply chain management so that young people can look at logistics as a viable and rewarding career option. This can also promote scholastic achievements which may prove to be beneficial for both students and organizations in the long run.

 

Enhance benefits for logistics employees

As a general practice, organizations mostly provide competitive salaries to woo high-quality workers in any field. But, more should be done on this front to improve the standard of living /quality of life for employees in the field of logistics and, thus, to keep them motivated.

Most millennials these days are worried about their financial security in the future as most of them are riddled with one or more sources of long-term debt. An effective retirement benefit program can be provided by organizations to motivate them and drive away insecurities from their minds. This way, new talents can be attracted easily as today’s generations look to have a proper work/life balance and lucrative/unique perks can work perfectly towards keeping the best young talents with an organization for long.

A combination of a well-developed compensation plan and incentive schemes should be a critical component of any employee retention strategy. Recognition plays a very important part of making the employees feel valued. When employees feel a sense of being valued/appreciated, it boosts their job satisfaction which, in turn, triggers loyalty and creates harmony in a work environment.  Therefore, in addition to recruiting and training SCM talents, organizations should invest in employee retention and creating a culture of value, respect and mutual appreciation. This will ensure success to follow.

Develop a dynamic yet strong corporate culture

Salary has ceased to become the sole important criteria for younger generations to decide about a job opportunity these days. Companies these days thrive in developing a fun-filled, dynamic and social working culture so that the best of the employees can be retained with minimum effort. The new generation workers these days look for purpose and meaning in their assigned works. Treating them as important individuals and providing them with an environment full of opportunities go a long way towards securing the best of their services.

Innovation is the key

Young and quality workers are always attracted to a working environment that encourages innovation. The organization should implement the modern logistics tools and industry best-practices to attract millennials who were born in an era marked by technological disruption. They would not like to work for a company that uses obsolete processes to carry out routine tasks.

 

Make Investments towards the future of supply chain

Supply chain companies may invest now for ensuring the future flow of quality SCM personnel to the organization and the industry as a whole. For example, they may organize programs in college/university campuses where guest speakers can explain to the students the benefits of being in the logistics and supply chain industry or about the future career prospects in this industry. This will foster excitement and interest in students to look for a possible career in the supply chain.

Supply chain organizations may also work in collaboration with reputed universities and help them to devise courses/programs related to specific SCM job skills and make necessary changes in the curriculum accordingly. This will help the organizations to get ‘ready for work’ university graduates in the future.

The road ahead:

A marked generation shift is observed in today’s workforce and more so in the supply chain and logistics industry. The inevitable retirement of Baby Boomers and the steady assimilation of Gen Z (workers born during the period from the mid-‘90s up to the year 2000) into the industry has changed the entire perception of the recruiters. Now the recruiters are forced to devise their recruitment strategies in order to woo professionals with innovative benefit packages. Every company in the market offers competitive salaries these days but they constantly evaluate their benefits packages while recruiting as this is an important criterion for the GEN Z workers.

Companies are updating their retention strategies to become a ‘standout recruiter’ and stay ahead of competitors when it comes to wooing quality talents. Such strategies include investing a significant amount of the HR budget on the professional development of the supply chain employees. Many organizations are also using extensive mentorship programs to reinforce employee engagement.

Organizations have realized that chalking out a clear career path and providing diverse development opportunities for employees can help a great deal in the retention of quality employees in today’s competitive environment. This helps the employees too as they get a clear idea of where they will be after, say, five years from now.

Lean Specialized Personnel Consulting

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Lean Specialized Personnel Consulting

 

The trend of lean specialized personnel consulting is growing rapidly in today’s commercial world. Typically, in lean specialized personnel consulting, the task or specializations accomplished the consultants need to execute various responsibilities associated with the lean management of commercial setups.

In the lean specialized personnel consulting, the consultants ensure that the client cut down on the wasters and makes sure that the existing process can be made more efficient. While doing it, the organizations also look at increasing its profit margins along with the expansions of business horizons.

Lean Specialized Personnel Consulting: An Efficient Team Work

The lean specialized personnel consulting is basically teamwork, where each team members is assigned with certain specific duties. The overall and prime objective of lean specialized consulting is to achieve various specific goals of projects.

While offering lean specialized personnel consulting, the consultants or the consulting agencies are guided by a specific set of effective and time-bound guidelines.

Hence, in the process of lean specialized personnel consulting, the consultants and the consulting agencies should be shortlisted based on the fulfilment of the below three prime requirements.

  • The consultants must have requisite training and certification for the role
  • Requisite experience and successful track record
  • Have an efficient and qualified team

Prime Responsibilities of Lean Consultants

One of the prime responsibilities of lean personnel consulting is extending personal specializations. Further, lean consultants are also responsible for identifying the various best practices in the industry and implement them efficiently in a time-bound manner. The lean consultants are also responsible for access to the requirements of clients correctly and take the required necessary steps to address the issues and the challenges involved.

The primary goal of the lean management consultants is to eliminate the no value activities from the system and assist businesses towards the implementation of methodologies which can largely streamline the presently followed processes that do not result oriented and profitable.

In short, the basic role of the lean consultants is to reduce the wastage of time, effort and money which will, in turn, ensure that the activities undertaken are time as well as cost-efficient. Further, lean consultants also need to ensure that the outcomes meet the required industry standards and qualities.

Lean Specialized Personnel Consulting: Experience and Expertise

For the organizations, figuring out the needed expertise and experience among the available lean consultants is a key challenge. The professionals offering specialized lean consulting services need to have the requisites experience and skills to drive the task entrusted. In such a scenario, the skill set of the lean consultants needs to be highly specialized for streamlining of the process towards driving improvements. Generic experience and skill set will not be enough for such a task.

Key is Providing Effective Guidance

Learn specialized personnel consulting always involves offering effective guidance. Such guidance is always based on the technical knowledge and expertise of the consultant. Such directions must be able to break down the complex tasks to simpler ones.

Thus, the accomplishment of the task involves a clear road map of pre-work and event planning; although the task accomplishment does not end here. The lean consultants further need to offer support and drive continuous improvement activities for the enterprise and their activities. All such activities must lead to the desired goal of cost economy in projected lesser efforts.

It is to be noted that there is a fundamental difference between coaches who imparts training on lean management and lean consultants. The roles of coaches are only to impart training whereas the lean consultants are like a friend, philosopher and guide to the enterprises and the executives; they lead them on a right path towards greater success and profitability.

List of Expectations for the Lean Specialized Personnel Consultants (Example: For the Industries Like Manufacturing)

If one is looking out for hiring lean specialized personnel consultants for a manufacturing enterprise; they should look out for the below points prior to making the hiring decision.

  • Do not always focus on the price point. Review the skill sets and experiences carefully
  • Prefer consultant who loves to discuss wrenches and drills instead of only pie and bar charts
  • Always try to treat consultants like a god. Ensure to follow their recommendations rigorously without challenging them. It is to be noted that defensiveness is self-defeating. If you are finding it difficult to trust your consultant, it is always good to opt for a right replacement
  • Remember that consults should not execute anything. To ensure that the new set of skills to take root in the enterprise, the in-house workforce must execute the responsibilities in the close supervision of the consultants. The goal of the organization should be the permanent implementation of lean skills within its system
  • Ensure to pull out everything from the consultants in terms of recommendations and ideas

Lean Specialized Personnel Consulting: Rising Demand in Finance Domain

The role of financial executives continues to expand. There has been an increasing trend that is echoed on how enterprises work with lean consultants. Today, enterprises are increasingly looking at specialized assistance from the lean consultants from ERP upgrades to navigating period of accelerated growth. Further, firms are also seeking experienced project professionals for various broad ranges of activities.

Learn specialized personnel consulting becoming an area of growing emphasis is business systems. According to a recent study conducted by Robert Half Management had reported that more than 61 per cent of chief financial officers work with lean consultants. These consultants are primarily engaged with performance improvement initiatives of the enterprises.

The study has further excerpts that more than 55 per cent of chief financial officers expect these consultants to work for finance and accounting projects. In addition, more than 25 per cent of them wants to engage them in finance, governance, risk and compliance works. The study has also reported that the demand for consultant assistance for finance optimization project has been experiencing steady growth.

Today, organizations rely on lean financial consultants to lead key projects and senior level roles on an interim basis. Increasingly, consulting is becoming an attractive career option among experienced professionals, who loves to enjoy greater time flexibility and increased exposure to diverse challenges.

How an organization find or understand that they need specialized expertise from lean financial consultants. Answers to the below five questions will help in finding out the same.

Is there any high-level initiative that is of a finite duration or a onetime need for the organization?

Across small as well as large-scale initiatives organizations can collaborate with skilled and experienced professionals who have the requisite expertise to focus on the specific challenge in hand. For example, organizations can hire consultants both on an individual or team level to streamline various requirements such as business process improvement, financial systems upgrade and activities such as merger and acquisitions.

Is there an upcoming initiative in the organization, for which the required set of skills not available in-house?

For certain initiatives, the in-house staff may not possess the requisite skills and full-time hire may not also is the requirement for a shorter duration. In such a scenario, organizations always look out for short time consultant who has the requisite knowledge and skill set to fulfil the need. Further, organizations can direct such consultants to nurture the requisite skills and industry best practices among the in-house staffs and across various levels of the organization.

Is there any senior-level position vacant in the organization or there is a requirement of changing skill set?

There may be a time when senior level financial roles can be vacant in an organization which need to be staffed by a financially skilled professional. In some cases, the employer or an organization may not be ready to hire a fulltime replacement immediately.

In such a context, some organizations may have immediate short-time demands during various business stages, such as during their high growth cycles or during the stages of pre-IPO.

In such scenarios, organizations may need assistance from experienced executives to hold the post, until a full-time executive is confirmed or finalized. Financial consultants with specialized skills as required by a specific organization can fill such positions for an interim basis meanwhile the organization determine its long-term goals.

Are there any additional projects within the organization which need special attention and the internal staffs do not have requisite skills and capacity to handle it?

In certain cases, the workload of an organization can spike exponentially where the limited internal workforce is not sufficient to handle that. In such a scenario, the specialized lean consultants can step in immediately to address the rising business demand of the organization. This will allow the needed space for the full-time workforce to focus on the core competencies of the organization.

Are There Any Cyclical Demands Which Requires Any Additional Consulting Support?

Most of the financial and accounting activities are cyclical and they come with monthly, quarterly and annual deadlines. In such scenarios, external financial consultants can be hired to handle the additional cyclical pressure and responsibilities. Across such cases, the organizations usually look at various seasonal supports externally.

Hiring A Lean Specialized Personnel Consultant: What are the Pros & Cons?

It has been observed that organizations follow two types of growth models. A set of organizations highly relies on its internal workforce drive business performance to chase growth. On the other hand, a certain set of organizations plays lean and hires specialized consultants towards maximizing their business performance.

These specialized consultants are primarily the third-party entities who collaborate with the organizations when needed. As part of their collaboration, these entities understand the business operational flow of an organization, offer growth strategies and take it forward from what already achieved.

Instead of assigning a set of employees with the task of streamlining existing operations, the lean consultants work towards offering specialized assistance to optimize various business processes of the organization.

If an organization’s area of operation is manufacturing, hiring a consultant could be the move that the organization is looking at transforming its business and operation processes to achieve greater efficiency.

What do Consultants do?

Offer Growth Strategies: Growth is the prime goal for every organization or businesses regardless of the industry it’s operating into. For the various industries such as manufacturing, following sustained growth is highly difficult. Sustained business growth in the manufacturing industry highly depends on several factors such as in certain cases the innovations can be slow as well as risky.

In such scenarios, the hiring of growth consultants rightly pays off. In the cases, where an organization is aware of the limitations and has goals, but do not aware of the process of implementing a winning strategy to promote the growth, a consult can be handy with sound solutions.

In such organizations, the lean consultants can use multiple tactics to assist the manufacturers to innovate the new products faster while limiting the risk, effort involved and production costs.

 

 

Nurture the Workforce: As the experienced and older employees continue to retire, the younger workforce can become confused as they may not have an understanding of what the industry has to offer. Due to which attrition can become a challenge for the organizations. In such a context, the lean consultants become the key towards bringing organizational transformation by imparting customized training to the workforce on the new technologies and industry best practices.

To attract the younger generations in the traditional industries such as manufacturing, lean consultants streamline their efforts to recruit millennials by showcasing their industry. For example, some enterprises organize open events at their facilities and invite students and younger generations. Such efforts help in showcasing internal processes of a manufacturing-based organization and potential career opportunities for the future.

Implementation of Lean Operations: In manufacturing, the concept of continuous improvement is at its core. At a small or a mid-sized level, continuous streamlining of the operational process is usually simpler and easier. But, when an organization grows exponentially with offerings of multiple products and multiple production processes, it becomes difficult for an organization to streamline its various efforts.

In such contexts, the lean consultants can become very helpful in streamlining multiple operation processes towards continuous performance improvements. Specialized consultants work towards the implementation of lean operation by eliminating the waste across several areas starting from front office to distribution.

Optimization of Supply Chain: Constant optimization of the supply chain is the winning strategy for sustained business growth of the manufacturing-based enterprises. An experienced and highly skilled supply chain consultant strategically helps toward the improvement of product distribution at a better and lower price point.

Advantages of Consulting

Offers Assistance from a Specialist: An external consultant most likely to have experience from the exact field that you are into and also have past experience that may too mirror your current situation. Collaboration with such a consultant offer you peace of mind by knowing that the business is in the right hand who has been in a similar situation before.

Get an External View on Your Operations: Sometimes, there is a need for a neutral external perspective to understand the scope of improvements. In certain cases, it helps in operational improvements, instead of a known internal approach. With an outsider view, the current business challenges can get cleared up towards the achievement of desired goals and the improvement of overall efficiency.

The hiring of Consultants is Affordable than Hiring a New Employee: It is to be noted that hiring an employee usually cost more than hiring a specialized consultant. The hiring of a new comes along with the added cost such as the requirement of workspace, technology, benefits and more. On the other hand, consultants are hired specifically hired for a specific time-bound project. Thus, consultants come much cheaper than hiring a full-time employee. However, it’s too depends on the scale and magnitude of the project.

Disadvantages of Consulting

One has to note that hiring and steering an external consultant towards right direction does not come without any challenges. One should ensure that the role of consultants needs to be well defined and their prime role needs to revolve around the elimination of inferior practices which is slowing down the organizational growth but not to insult the organizational intelligence.

The working relationship between organization and consultant should be collaborative, friendly and professional. Else, in some scenario, a piece of advice may look like criticism.

The business collaboration should always remind the common goals, i.e. improvement of operational efficiency of the organization.

Final Thoughts

While the lean specialized personnel consultants are usually hired to focus on one project; but based on the success ratio in such assignments, organizations may like to extend their services for longer periods towards getting assistance in various other specialized areas. Such collaborations are always mutually beneficial.

Organizations should always evaluate the advantages and disadvantages linked with hiring a potential consultant such as specialization, skill and experiences before making a hiring decision.

Lean Specialized Personnel Consulting

Digitization in supply chain management

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Digitization in supply chain management

Industries nowadays are becoming more transparent with regards to how their management is run and the supply chain is no exception.  Customers are also becoming more demanding for efficient delivery processes and are becoming choosy about the mode of accessing products. The advancement of digital technology has really been the driving force for these changes.

How to make a supply chain system more efficient?

It is quite a difficult task for companies to develop an efficient supply chain system. It is quite impossible for companies to develop a supply chain without a clear idea of the process and applications and a certain amount of strategic planning. The company should try to improve its systems based on their current business situation and also on the basis of evolving business ideas. These new and improved ideas should be implemented in all spheres of their business operations including (but not limited to) the below-mentioned avenues-

  1. Processes– The company need to implement these new and improved methodologies to connects the suppliers and the customers in a better manner. This will help in proper coordination and collaboration between these two important stakeholders.
  2. Performance management system– The company should necessarily set up some specific rules and regulations to enhance the performance of those who have the responsibility to manage the entire supply chain. All the important performance indicators should be measured timely to ensure better results and make the supply chain system more efficient.
  3. Developing the organizational skillsets– the company needs to understand various skills that are required to enhance the performance of the entire supply chain. These may include the skills of problem-solving by optimizing or managing the entire supply chain. This may require strong organisational support to promote relevant communication across different organisational user groups or programs. However, for extracting maximum benefits from such activities, the company has to develop its in-house talent and experiences. Then only it can ensure continuous development of new supply chain applications and processes.
  4. Enhancing stakeholder capabilities– In addition to enhancing the capabilities of their in-house resources, the company also needs to develop the capabilities of its partners and stakeholders. The supply chain just cannot achieve their set objectives of developing a well-oiled system without the help of their partners or the stakeholders such as suppliers, technology providers or even the distributors.
  5. In leveraging advanced technology– as already discussed, the company has to develop a road map for effective implementation of the new and advanced technologies into the supply chain. A few such operations include the integration of the information layer, analytics capabilities the database and the cloud.

 

When it comes to the supply chain industry, most of the companies are delivering their products to their customers through a standardised process. The marketing branch of the company places orders and the ordered products are prepared for distribution. At the same time, the respective customers are given the requisite information regarding their product and its shipment. It is necessary for the operation to take place smoothly so that the customers can expect their shipment on time. But, it does not happen as smoothly as desired, all the time and inadequate information is the ‘culprit’ for the same. For example, at times, the necessary data which is necessary for forecasting may remain insufficient. In some of the cases, the manufacturing branch of the company may not get sufficient help from the suppliers or other relative partners due to lack of timely information in critical links of the supply chain and there arises a gap between the operation process and the requirement. The whole supply chain is interrupted this way.

Digitization in supply chain management

How can digitization help?

There can be many concrete examples of benefits brought about by digitization into a supply chain system. Enhancing productivity and growth of work are two broad benefits of digitizing the supply chain.

Given below are a few of the benefits digitization can bring to the supply chain management-

  1. In the process of capturing data-

The Internet of Things (IoT) is a boon of modern technology that is capable of making data available in a more transparent manner. Thanks to IoT, manufacturers are now able to gather data with the help of sensors. These data are essential for monitoring important supply chain assets. This results in lower downtime in data capturing and helps the company to manufacture products so as to meet the demands of their customers.

Data captured so efficiently brings transparency to transportation and logistics as well. Barcoded products manufactured by a company can be tracked by both the company and the customers alike. Moreover, internet of things has also enabled new tracker facility that can track not only the location but also can capture data regarding the temperature, orientation, humidity and other such variables that can cause a positive impact on the entire delivery system.

  1. In analysing data–

Digital concepts such as e-commerce are providing big data and it helps in the improvement of process management, product customization, market trend predictions, quality levels and customer personalization. For example, this new-found process of analysing data can help in providing new data routes for freshly observed patterns which, in turn, can identify more routes with fewer shortcomings.

  1. In integrating data–

The most significant contribution of digitization to supply chain is perhaps achieving higher levels of clarity at all stages of the process. Data is contained in different ‘blocks’. It is necessary to capture the required data, integrate them and then analyse them effectively in certain specified steps. The method of integration may involve the following steps depending upon conditions-

  • systems involved in integrated planning and its execution
  • advanced analytics
  • logistics visibility
  • smart procurement and the warehousing

Advanced features of digitization are employed in all these stages to bring the much-needed transparency into the supply chain.

  1. In accessing data–

The integrated units of any supply chain management depend on data accessed. These data need be transferred eventually to the end-customers. With the advent of digital technology, the data transferring process has also become quite easier. Now, the customers can keep track of their shipping experiences from their own comfort, thanks to features of digitization.

  1. In interpreting data–

If real-time data can be obtained, it proves to be very useful for any supply chain management. But, one of the major drawbacks here is the achieving of the desired accuracy level and reliability of data. Digitization has been of tremendous help here as it has offered the facility of correcting the data automatically and even enhancing reliability in supply chain technology.

  1. Comprehensive integration of solutions involved in the supply chain– as the supply chain is a vast territory, companies nowadays often vary in the planning or reporting of production related data. Digitizing the process of the supply chain is a great approach that removes many hurdles faced in all SCM systems down the line. But it requires a strategic approach for the digitization plan to be executed properly. If such a strategy is executed properly, there can be many benefits for the company and many inherent faults can be eliminated, which, if not eliminated, have the potential to deviate the processes from reaching the organisational goal. Digitization helps in setting certain benchmarks and fixing of organisational goals properly. Such integration helps the works to be accomplished in a proper manner. But, it is very important for the companies to keep a track on such integrated solutions and measure the performance at every stage, in order to avoid eventual failures.
  2. Helps in better handling of data- The Internet of things has reached its greater heights with time and, in recent times, has become an integral part of supply chain management. Better solutions to perennial supply chain issues have been possible now, thanks to IOT. Now, the supply chain can be digitized involving operations such as collecting of data, sorting and finally evaluating the data. As a result, it helps the managers or the planners of the company to make more effective planning ideas. Effective methods of data connection are also helping the managers or planners to deal with circumstances which used to plague the management a lot in earlier times. The IoT based technologies employed to supply chain involves a lot more detailing, and hence can save the management from critical situations happened earlier due to lack of attention to such details. Now, IoT based data handling methods enables the management to deal with all such issues and complex datasets in a more efficient manner.
  3. Helps in enhancing collaboration– Digitizing the entire supply chain may not prove to be an easy task at all. Of course, it involves hurdles and complexities while implementing it across the organisational spheres. But, it is more than worth doing so as through digitization, the planners can share the data within themselves and within the supply chain stream to ensure smooth functioning of the operational cycle. Digitization facilitates more interactions and such a collaborative approach can save the organisation from breakdowns or disruptions. A digitized supply chain actually works a kind of central hub that includes a lot of data which can be accessed through multiple nodes. Unlike the traditional system, no one has to wait for days or months to collect or gather the requisite data. Results can be obtained much faster, rather than waiting for months. Thus supply chain digitization can deliver proven benefits for the supply chain companies.

Steps or phases involved in digitizing the supply chain process-

One of the important ideas involved in digitizing a supply chain is to be clear about its sustained benefits and whether the existing SCM processes in the company are capable enough for implementing and integrating changes likely to facilitate by digitization. Therefore, any supply chain company may go through the following five major stages in the process of digitization-

  1. It should understand the present position of itself– the company should be able to assess its current position and the level of maturity it has attained with time. It should also be able to identify the areas that need further improvement and maturity.
  2. It should be able to define its strategies properly– The company should be able to set a target for the supply chain management well before the implementation of digitization starts. It should also envisage the possible strategies and planning involved in the process of digitization.
  3. It should develop a proper road-map – The company should be able to define the necessary steps required for digitization and sketch a detailed road map accordingly.
  4. It should develop small pilot applications with end to end scope– A company may devise some small pilot applications that can be helpful in digitizing the entire supply chain in due course. These pilots should be able to carry out the necessary steps within its scope, however small they may be. Such a pilot application will help in assessing the capabilities of the company for digitization. But, the company needs to keep in mind that such pilots should be used in integrating the digitization in supply chain only, rather than for fixing other organisational goals.
  5. The company should do rollouts and monitor their development– After successfully developing pilots, the company should do a few rollouts in certain segments. Then it should monitor the progress of these rollouts and assess which segments are benefitted the most from the digitization. This rollout can even be extended either to some important regions or particular customer segments as desired by the company management.

 

Assessment of maturity in the supply chain-

Most of the supply chain companies in the present day have successfully implemented certain levels of digitization in their operations. Before extending higher levels of digitization, it is very important for the companies to study its current maturity level in order to devise a specific plan for the next level of supply chain digitization. The maturity of a supply chain can be witnessed in four stages as discussed below-

  1. Digital novice– It indicates an immediate need for improvement to sustain in the business. Companies at this stage need to proceed further to the next level of supply chain digitization at the earliest.
  2. Vertical integrator– At this stage of digital maturity, the companies manage to integrate various processes of supply chain digitization into different departments or functions within their spheres of operations.
  3. Horizontal collaborator– The companies, at this stage of their maturity, have gathered required information that can help their supply chain partners to set up their goals and objectives. Such expertise and control help all stakeholders to carry out their processes easily and to bring the much-needed transparency into the entire supply chain operations.
  4. Digital champion– At this stage, the company has achieved the greatest level of digital expertise possible in association with its partners and has managed to be more transparent in their operations as well. This has been done by developing some beneficial digital processes and techniques and implementing them seamlessly in the entire supply chain management.

 

Some examples where digital technology has been helpful

A wide range of ideas of various technologies are mentioned below, which are integral parts of digitization. These have come to immense help to the industries.

 

  1. 3D printing – 3D printing is used in widely used in manufacturing these days. The scope of 3D printing in the field of pharmaceutical and healthcare logistics has enforced a dramatic change to the supply chain strategy involved therein. Many production industries like Johnson and Johnson, Invisalign etc have leveraged 3D printing technology into good effect and have excelled to greater heights of late. Other companies are also following suit and the concept is 3D printing is expected to grow even more in a foreseeable future.
  2. The fast growth of ‘Uberization’– When Uber first came into the market with its unique concept, it was not able to penetrate that much into the existing market share. But, with time, Uber has been able to leverage the technology disruptions to good effect and made distinct changes into their operations, to accommodate modern technology. It helped their operations so much that, in two years, the worldwide market share of Uber rose from 8% to 27 %.
  3. Internet of Things and machine learning – These technologies are among the most evolving technologies in modern times. These are being leveraged in the SCM industry to fulfil the needs of the digital supply chain for the future. These technologies offer various advantages related to costs, operational efficiency etc to the supply chain companies.
  4. Advantages of cloud computing– Cloud computing came to prominence after 2016. A cloud provides distinct advantages when a supply chain organisation wants to set a benchmark in its data acceptance level. It is because cloud computing enhances the computing power and application systems of a supply chain. A cloud computing framework also increases the efficiency of the software systems. But, its development requires a lot more time.

 

Digitization is nothing short of a revolution nowadays. Transforming everything to digital is challenging indeed. There are many avenues of digitization that may find a place in supply chain systems.  Advanced robotics, 3D printing, drones, internet of things etc fall under this category. But, it would have been better, if such technologies can be customised to some extent. Also, the capital involved in the maintenance of these technologies is still a concern for the companies.

 

 

 

 

 

 

Internet of Things For Gen X, Y & Z

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Internet of Things For Gen X, Y & Z

Compasses, maps, and telescopes – There is a time when a voyage by land or sea from one part of the world to another was a miracle. There were explorers who made history by traveling from one continent to the other. This voyage would take months or even years to reach completion and they returned home, if luck favored, like heroes. Back in those days, it was indeed a difficult task, and thanks to the generations that passed by, we are now in a supreme position to enjoy these routes in ways that would have been unimaginable to the founders of these maps. Now, what are we talking about?

Traveling by sea in the morning or night is going to happen, but we are living in a generation where the math of people traveling around the world is a crazy number that’s beyond counting. Change is everywhere. Normal mails have turned into emails. Bazaars have turned into online marketplaces. It’s a time where we send products through or to different parts of the world for personal and business reasons. All over the world, the products are shipped and sold all over the world. Globalization has taken the world by storm and is happening at home, abroad, and almost anywhere with just a touch of the phone. We spoke to each other and where we reached, Where’s the process of getting things from A to B for business reasons. But the way this process comes to life is a subject of wonder. It has clearly outgrown the thoughts and imaginations of all the visionaries of the past. It is growing faster than ever.

Time to learn the craft

To the elders above fifty years of age, the internet and social networking are still big news. It’s novel to them. The generation in the making is different and simple internet operations are becoming obsolete soon. GenX and Z wants to make the chain efficiently and to use the chain of logistics. When we take a look at the Internet of Things and its positive trajectory, the need to adapt and be prepared becomes clearer.

Internet of Things

Everything with an on / off switch is part of an interconnected network. IoT, in a nutshell, is a collection of interconnected physical devices that can monitor, exchange, and report data. It sounds like its simple, and it is it. But the mechanisms involved in it are not. The well-knit unit has a particular style of its own and one that goes entirely with the knowledge of how to operate the systems in a working environment that depends entirely on IoT. When we think about the Internet of Things, it’s just about a working space that’s completely filled up by machines and AI. The IoT thus includes people using devices to operate, to complete the circuit of communication between man and machines.

IoT devices usually use sensors for measurement. They have a system in place to check some important parameters. The devices measure, like, location, temperature, humidity, light levels, movement, handling, speed, efficiency factors, error probabilities, and other environmental factors. The list has everything in it, and it is true!

Part of The Change That’s Spreading Everywhere

Industry 4.0 is underway and there is no reason to be shocked to see such developments around us. The current trend of automation and data exchange in manufacturing technologies is termed as Industry 4.0, and this includes cyber-physical systems, cloud and cognitive computing, and the Internet of Things. The revolution intends to foster a smart factory. There are modular factories who can take decentralized decisions. This may pose a serious threat to the working people in the world, but it’s hard to stop the revolution when it’s already in full swing. Like a popular saying in the Malayalam language in India, “Naadodumbo naduve odanam”, which means when the country is progressing and moving forward in full swing, we have to catch up with it, or we want loose sight of the future. The developments in industries like Logistics and supply chain management does not mean people are about to lose their jobs. It simply means that GenX, Y, and Z have to be flexible and ready to learn, adapt and move forward because, in the path of innovation, conventions do not stand a chance. The Fourth Industrial Revolution is already happening, and countries like Germany, Canada, Japan, Australia and Switzerland are already in the race. From a period where someone crossed the sea to the first time, to a time where a wristwatch reaches the customer by sea or air – all, using a phone – So, you can imagine the pace at which developments are happening in the world. It simply means that GenX, Y, and Z have to be flexible and ready to learn, adapt and move forward because, in the path of innovation, conventions do not stand a chance. The Fourth Industrial Revolution is already happening, and countries like Germany, Canada, Japan, Australia and Switzerland are already in the race. From a period where someone crossed the sea to the first time, to a time where a wristwatch reaches the customer by sea or air – all, using a phone – So, you can imagine the pace at which developments are happening in the world. It simply means that GenX, Y, and Z have to be flexible and ready to learn, adapt and move forward because, in the path of innovation, conventions do not stand a chance. The Fourth Industrial Revolution is already happening, and countries like Germany, Canada, Japan, Australia and Switzerland are already in the race. From a period where someone crossed the sea to the first time, to a time where a wristwatch reaches the customer by sea or air – all, using a phone – So, you can imagine the pace at which developments are happening in the world. and Switzerland are already in the race. From a period where someone crossed the sea to the first time, to a time where a wristwatch reaches the customer by sea or air – all, using a phone – So, you can imagine the pace at which developments are happening in the world. and Switzerland are already in the race. From a period where someone crossed the sea to the first time, to a time where a wristwatch reaches the customer by sea or air – all, using a phone – So, you can imagine the pace at which developments are happening in the world.

IoT in supply chain

IoT is part of the industrial revolution that’s taking the world by storm. It’s an effective way to track and authenticate the logistics and supply chain using the latest technologies. Connectivity through IoT brings in data that can be turned into useful information. Good information can help in a better way. When the supply chain is monitored, it will surely be a spike in efficiency. If you look at the possibility of changes, it will help you get the system much faster. When this information is processed, the data transfer is digitally sped up, and the time required to make it will be short. In a nutshell, it wants to be enhanced operations like never before.

IoT wants to uplift the standards of the industry. Supply chain monitoring, vehicle tracking, inventory management, safe transportation, and automation.

What changes here?

It’s automatic: It’s all about the next levels of operation. The plant machinery can be started and stopped automatically according to changing demands. There is more. The fleet activity can be monitored and factors like fuel, time-consuming, and power can be saved.

Minimal downtime : From critical machinery, the status and trend of operations and efficiency can be monitored easily. This means the problems on possible outages can be easily detected. When we can make repairs in minimal time, chances of downtime are less as well. If failures of machinery are detected, then the preventive maintenance can be done with only a low impact on production and logistics.

Asset tracking : Bar codes and tracking numbers were the standard method of operation throughout the supply chain. But with IoT, these methods have become outdated. When there are more methodical and safer systems in place, why should we stick to the older methods? There are sensors that make a difference in these departments. Radiofrequency Identification and GPS sensors have the capacity to track products from store-to-store. Even the most intrinsic details of the system can be captured through this. Temperature, amount of time spent on a cargo, and how long it takes to get it off the shack are that can be procured in a flash. It’s like the raw materials and finished goods can speak. Through the interconnected network, it is easy to read the book like a book.

Vendor Relations: The number of products in stock is the next buy for any company. Asset tracking becomes important because it allows the companies to tweak their production schedules. This, in turn, helps in maintaining healthy relationships with vendors. Technology plays an important role in the value of a company’s products and services, but suppliers are the key players here. In the hierarchy of returns, it is one of the most important levels to be derived from the business. When you have higher quality goods, better relationships can be maintained with the customers. The monitoring of these goods can be done effectively using IoT.

Predictive Analysis : When large amounts of data are collected about the supply chain, the chances of improvement are more. Gone are the times where a simple excel sheet will do the tally on inventory and products shipped or received. With a decentralized system that helps to efficiently monitor the goods and services of the organization, chances of error are less. Supply chain executives have the onus of taking fast and tough decisions here. Chances of human error are more. With IoT, this becomes much easier. The executives can use the information and easily come to conclusions. This will mitigate risks and improve the time-to-productivity ratio of the employees and the company at large.

Time management : Self-driving vehicles and drone delivery are part of the family already. It’s certainly exciting, and moreover, it helps in saving time. The predictive analysis of data, asset tracking, and automation of the machinery saves a lot of valuable time for the organization. From fleet management to warehousing of the products, IoT plays an important role here.

Growing Opportunities in Supply Chain

We are witnessing a massive expansion in trade. The logistics and supply chain is undergoing a revolution. Who wants to have a career in this industry. According to trade experts, there are millions of jobs to fill in the years to come. By 2020, over 70% of the companies in the world want to use predictive analytics, and wearable technology in their supply chains, predicts Deloitte. In this field, what is the best way to do this? Trade analysts have made the estimate that by 2020 the number of interconnected devices will fly up from 20 billion to a staggering 40 billion in total. The global spending on this area can touch $ 6 trillion, predicts Business Insider. This shift wants to have a huge impact on the roles and skill sets required for the candidates in the near future. This means that the organization wants to look for candidates with a complete understanding of the emerging technologies. They should possess the ability to assimilate technological advances and try to improve the value of the supply chain.

Headhunters

However, there are probabilities for the talent gap in the market as well. The hiring of candidates can indeed be a difficult task. Telematics, Warehouse Management software, Workforce management software, and knowledge about other IoT devices and applications – It is not easy at all. Someone who has decades of experience in the industry wants to be flexible enough to try and adapt to these changing environments, or it is tough. One can either survive or thrive. Similarly, we should understand that when you are in a fortnight, what are you waiting for backstage? It’s huge!

From Cyber ​​Security to knowledge, the team members should be well aware of everything inside an organization. A candidate for a career in the field of supply chain and logistics should possess all the new gen techniques and skills, and not just conventional knowledge from textbooks. There are identification sensors, proximity sensors, detection sensors, and temperature sensors in IoT. Name it, and you have it.

As there are automated machines and advanced monitoring systems, the chances of error are less. From an employee’s point of view, it can be easy too, because the IoT ensures fewer probabilities of error. But on the other hand, then it will lead to more problems. This is where Headhunters enter the picture.

Internet of Things For Gen X, Y & Z

Why Headhunters?

Nothing is old school anymore. The quality of most of the operations in this world is on the rise. We are not dealing with conventional techniques on building, research and development anymore. In a world that’s changing with passing days, everything is new. To be able to catch up with such advancements, headhunters wants to be more helpful. They can help the candidates in getting sufficient training. This will help you stay competitive in the market.

For an employer, there is no time for trial and error. There has to be precision. An organization wants their employees to know about everything that happens within the company. Work is divided, but when there are innovative developments happening every day, it is often hard for the candidates to catch up with new knowledge. With headhunters in place, error probabilities are less. There are special recruitment agencies who deal with IoT and specialize in big data. When a candidate gets trained, it becomes beneficial for both the employee and the employer.

These experts who are specialized in the end-to-end supply chain make a big difference in the efficiency of the organization. Ranging from Chief Supply Chain to Logistics Management, they train and help in hiring the best.

How to Choose a Good Talent Firm?

A firm that helps in recruiting candidates should have a good amount of experience within their team. They should have a deep and broad supply chain recruiting experience, with the ability to understand a company’s supply chain. This will, in turn, ensure the identification and commitment of the right talent based on the client’s criteria.

There are different types of organizations and each one wants to have their own working model. There are candidates in search of jobs after they graduate. The training required for each of these candidates will vary. From a candidate’s point of view, if they are beginners. Even if the candidates have the experience, they need to be in the right environment. A talent organization ensures that the candidate’s expectations are fulfilled. On the other side of the coin, a person hunting for a job can land at the right spot!

Change is the only constant and dreams are the designers of everything that changes around us. In a rapidly progressing world, challenges are huge, but they can be dealt with in style if you have the right frame of mind to learn, adapt and improve at each step of the career. Here with IoT, the entire working formula of the organizations and business enterprises are about to change. Fast your seatbelts, because a revolution is on the way.