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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.

 

 

 

 

 

 

MAKE WAY FOR INDUSTRY 4.0

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MAKE WAY FOR INDUSTRY 4.0

In a fast-moving generation, where new technological advancements happen in the wink of an eye, there is only one constant – change. We have to learn the art of walking hand in hand with everything new and adapt to the ever-changing environments to draw a progressive trajectory in our careers and personal lives. Everything around is changing, and there is nothing that’s permanent. ‘Improvement & growth’ are the two key words that drive people towards innovative ideas and solutions and Industry 4.0 is a testimony to change on a gargantuan scale.

 

Miracle on the move

 

New discoveries are made daily, and it’s certain that there won’t be any dearth of it in the days to come as well. But things around us are rapidly changing. The IoT (Internet of things) is ever expanding and it has started to play a major role in the field of production. The manufacturing industry is taken over by machines and the awe-factor here is that these machines have an internal intelligence and advanced interfaces that allow them to communicate with other machines. Sounds interesting, isn’t it?

 

It’s surprising, but it will not be new anymore considering the pace at which the industries are moving forward. You won’t be wrong if you can call it the future!

 

Industry 4.0 is a title for the current trend of automation and data exchange that’s taking the world of technology by storm. Cyber-physical systems, cloud computing, the IoT, and cognitive computing – it’s a ‘smart factory’ where the cyber-physical systems have the ability to take decentralised decisions. Over the IoT, these cyber-physical systems effectively operate and communicate with each other, and with humans. It sounds like a miracle, and you don’t have to doubt – it is indeed one!

 

Pillars of strength

 

It is like watching those Hollywood movies where it’s all about saving the world and future. Among the design principles of Industry 4.0, is interconnectivity.  Here, unlike the working patterns of the generations that passed by, the machines, devices, sensors, and people have the ability to connect and communicate with each other. This is achieved through the IoT (Internet of Things), or IoP (Internet of People). This brings forth transparency in the way it’s operated. The operators are loaded with useful information, and this makes it easier for them to take further steps and decisions.

 

Here the focus is on the establishment of intelligent products and production values. The system of interconnected network helps factories to cope up with rapid product development in complex environments. Within a smart factory, the products can communicate with their environment and influence the arrangement patterns through RMS (Reconfigurable Manufacturing Systems). There are configuration rules from which case-specific topologies can be derived. This enables the manufacturing companies to adapt quickly to various requirements in the market. The flexibility is increased, while the task of co-ordination becomes much easier.

 

The functionality of the whole system is increased manifold and this helps in identifying and improving the areas that need further innovation and improvement. Major decisions are made by humans of experience. This will soon be replaced with high-end solutions which will not be prone to error.  The decision-making process will be assisted by self-optimised and knowledgeable manufacturing systems. This means there will be stronger technical assistance to people operating the system. These systems are capable of assistance & support by aggregating and visualizing information comprehensively to make better decisions and solve urgent problems on short notice. Cyber-physical systems have the capacity to support humans by conducting a wide range of operations that are either risky or too unpleasant to handle.

When the real and virtual world joins hands as one, innovation will begin to help the economy scale better heights. The convergence of affordable technology and exponentially growing data has the power to transform the entire economy. IoT plays a vital role in this transformation.  This provides sustainable mobility and enhanced services in all sectors alike.

 

Expected developments and labour

 

The manufacturing pieces of equipment in the industrial revolution will be something out of the ordinary. Highly automated machines, tools, and robots will enter the scene and precision will be a guarantee. There will be flexibility and as the requirements change, and it is much easier to switch. Robots will be seen working together with workers on joint tasks. There will be a radical shift in the labour market as well. Skilled workers in demand for their experience will be eliminated and for them, it will call for serious change to adapt and move with the trend. This brings forth some new opportunities for the working class to change their routine and smartly adapt to the new requirements in demand. The requirement profile in the industry is expected to shift from a normal production employee to someone with high levels of profound competence. The probability of the number of workers decreasing is high. The rest of the manufacturing jobs will contain more knowledgeable work which will be short-term and hard-to-plan. The workers will be required to monitor the automated systems which will be integrated into decentralised decision-making platforms.

 

When it comes to the structure of the organisation and the way it operates, the manufacturing systems cannot be henceforth operated from a nodal point. Instead of that, decentralised instances will autonomously use local information for decision-making. The decision will be taken by workers or types of equipment using AI methods.

 

Talk about the value creation, we are about to witness a whole lot of 3D printing. The costs of additive manufacturing have dropped rapidly and this calls for an increase in speed and precision. Geometries that are far more complex and strong will be designed at ease. This enables the industry to visualise and execute the ideas in a better way. When there are provisions to manufacture the product in batch size according to the requirements of the customer, the mass customisation integrates the customer easily into the value chain.

MAKE WAY FOR INDUSTRY 4.0

Business models and value creation

 

Most of the business models will use smart data for rendering new services. The new developments will be used for floating sustainable models that are unlike the ones in the past. These sustainable business models can create positive or negative impacts on the environment or society. But on the other hand, they can also contribute to solving an environmental or social problem as well. These models will have the power to stay, which means you won’t see them going obsolete in the near future. They will be competitive on the long-run. This will be technique and here, the functionalities and accessibilities will be sold instead of just focussing on the tangible products.

 

In a nutshell, through such advanced value creation networks, we can witness ‘Industrial symbiosis’. The cross-linking of value creation networks offers new opportunities for realising closed-loop product cycles. The product, material, energy, and the flow of water throughout the product life-cycles will be efficiently coordinated. This coordination can be achieved between different factories as well. Closed-loop product life-cycles as such can work on recycling too.

 

Traditional versus 4.0

 

If you look at the current market, providing the best of services and product quality at the least price is the key to success. There is no denying that. Unless you look at the brand value of things, this is the formula that works for the common man. The industrial factories are trying to achieve just that – they are trying to increase their performance and profit. There are plenty of data sources available for the factories to avail information about the various aspects of profit making. The data has to be used to understand current operating conditions, and detecting faults and failures of the existing system. This is an important topic to research and there are plenty of commercial tools available to provide overall equipment effectiveness (OEE) values to the factory management. This will help in hogging the spotlight on the root causes of problems and possible faults in the system.  Moreover, the added advantage here is that the components and systems in Industry 4.0 will have self-awareness, which will effectively improve the efficiency of the factory.  Through peer-to-peer comparison and fusion of health comparison, a precise health prediction is attained and this enables the factory management to maintain the systems intact. This sort of stability was missing in the traditional factories.

 

Logistics and supply chain

 

Innovation in logistics is not entirely associated with modern IT solutions. But there are things that can change. There are some innovative solutions that can manifest through this industrial revolution.

 

There is room for continuous improvement. Whatever work happens around, it will be continuously verified and the team will have huge benefits out of it.  The latest advancements also help to keep vigil over all the activities and its quality. Team-work can be effectively coordinated like never before. The entire focus will be on implemented practices and shared values. Through Industry 4.0, there will be continuous activities running round the clock to constantly search and come up with better ideas to increase productivity.  There is no dearth of communication, plus work-satisfaction and elimination of old habits – there are changes aplenty when the entire system is improved.

 

There are some other factors as well that showcases the kind of change that’s about to hit the field of logistics. There will be a big change in the structure of regional networks, flexibility and risk management. When it comes to the lead time delivery services, customer satisfaction is guaranteed. The system is more reliable and updated. As the services are rendered according to the needs of the customers, the rapid approach and problem-solving techniques will increase reliability and trust-factor to the next level. The segmentation of the supply chain will be focussed on demand and specific needs of the customers. This will help in great reduction of the volume of stocks, and bring forth cost-effective remedies. Safety requirements and potential hazards in the supply chain can easily be spotted. Combine all these factors and you can guess how a factory or a set of factories will benefit from these changes.

 

The Internet of Things

 

The idea of the Internet of Things was formulated by British entrepreneur Kevin Ashton in 1999 to describe a system in which the material world communicates with the computer. Two decades later, it stands in front of us in the form of reality.   Today, there are areas where IoT solutions can potentially revolutionise the entire industrial standards.

 

The IoT focuses on Smart environment where the entire anthropogenic emissions will be monitored and cut down to produce eco-friendly solutions. Smart water management is an area where this can be achieved. The impacts of water resources on the environment, their regulation and protection against floods, waterways, and hydropower is a key area of study using IoT that can change the entire game plan. In a way that supports the economy, soon there will be smart and better ways of transport, production and energy resources. Smart cities are another such wonder where IoT can play an important role. Traffic congestion can be monitored and regulated, parking spaces, intelligent roads, weather-monitoring and much more – the IoT can work magic. Smart health will cover a wide range of physical activities and monitor them to tune us into perfect health conditions. Health-centric homes are becoming a reality.

 

The future

 

Industry 4.0 has the potential to make an impact on a lot of areas around the world. Talk about better services and business models, it will be served. When we deal with productivity, it’s about to become more reliable and competent. Machine safety, risk management, better communication, product lifecycles, transport and logistics, and more – everything will be improved using cutting-edge technology.

 

If you consider a machine, with time it will be affected by wear and tear. When networking becomes confusing cobwebs, there is a loss of time and productivity. Industry 4.0 will address all the issues and bring out the best in everything. The vast majority of businesses are determined with the implementation of product, technical, technological, and organisational innovation.  The focus is on creating value for the customer who is aware of everything happening around. Solutions such as the Internet of Things, Big Data and Industry 4.0 create more opportunities to meet such customer requirements. Logistics is better, and supply chain management is stronger than usual. Business is better, and work is much easier. Welcome to the revolution.

MAKE WAY FOR INDUSTRY 4.0

 

References

 

[1] Persaga

https://www.persaga.ch/stellenwandel-dank-industrie-4-0/

[2] Science direct, T. Stock, G Seliger. https://www.sciencedirect.com/science/article/pii/S1877705817313346

[3] Science direct, Krzysztof Witkowski; Internet of Things, Big Data, Industry 4.0 – Innovative Solutions in Logistics and Supply Chains Management

[3] BGH Consulting. https://www.bgh-consulting.de/de/lp/industrie4.0-personalberatung/

[4] Wikipedia. https://en.m.wikipedia.org/wiki/Industry_4.0

[5] Waset. http://waset.org/publications/9997144

[6] Springer. https://link.springer.com/chapter/10.1007/978-3-658-05014-6_2

 

 

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.

Lean logistics – Why is it important

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.

HR Consulting in Industry 4.0

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HR / Recruitment Consulting in Industry 4.0

 

  1. 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.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Lean Specialized recruitment company

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Lean Specialized recruitment company

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.

Lean Specialized recruitment company

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.

 

People Factor: Key for Change Driver in Immunization Supply Chain Management

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People Factor: Key for Change Driver in Immunization Supply Chain Management

Efficient human resources management is the foundation of an ideal supply chain management process. Desired outcome from a supply chain system cannot be achieved without effective people and innovation management. Due to which, there is a growing trend towards the adoption of next generation immunization supply chain (ISC) management programmes to deal with today’s complex operating environment.

Role of an effective leadership is the key for the success of any immunization program. In every such program, he or she will be the ultimate driver who will empower immunization supply chain with the change or improvements needed.

Before going into the further details, let’s understand what is Immunization Supply Chain?

According to Gavi – The Vaccine Alliance, immunisation supply chain is an ideal healthcare supply chain ecosystem which includes all the stakeholders of an ideal healthcare system from people to activities, infrastructure and resources planning, whose roles are extremely important to transport vaccines to the end users in perfect conditions to ensure the immunization goals of a society or a country.

Foundation of Successful immunization programmes

According to World Health Organisation, an ideal immunisation programme is always designed based on functional, end-to-end supply chain and logistics systems. In such an operation, effective logistics and controlled supply chain process ensures efficient vaccine storage, handling, and stock management within ideal temperature management in the defined cold chain system. In such a scenario, the prime goal of entire end-to-end process is to ensure uniform service delivery towards uninterrupted availability of vaccines.

Change Leadership: An Essential Ingredient for Efficient Supply Chains Management

To encounter the modern-day challenges, there has been a constant process and people evolution witnessed by the supply chain industry. To ensure end-to-end perspective and uninterrupted availability of vaccines to the children, the new age immunization supply chain system must adapt to the ever-evolving industry requirements. But, who will lead the change towards future ready next generation immunization supply chain management?

Change leadership is very complex to define, but is the key element towards transformation, which empowers people to work towards a new vision in supremely controlled environment by minimising disruptions. An ideal change leader crafts an environment that can lead towards desired change which is self-sustainable.

In a modern immunization supply chain setting, change leadership program is a part of systematic human resource development programs. Such development programs rely on the below listed foundation blocks:

  • Engagement of key supply chain stakeholders towards the importance of leadership and effective leadership for adaptive supply chain management system
  • Sustained growth of human resource as a system with implementation of effective recruitment plans and strategic as well as standard operating procedures
  1. Regular skill enhancement and training programs for workforce development to tackle modern day challenges
  2. Formulation of actionable guidelines for better performance management and retention of human resource
  3. Ensure participation in leadership development programs from the supply chain managers, which will make them industry ready

Leadership for the Next-Generation Immunization Supply Chain

Change leadership needs to be supported by effective management so that innovations provide the desired results. According to a study of Burkina Faso on the need of efficient leadership in district level vaccination program reported that the effective leadership qualities of the appointed medical officer is the prime enabler towards the increase of team performance and widening of vaccine coverage.

This study suggested an array of change management qualities and competencies which are important for adaptive immunization supply chain, these includes,

  • Be the role model
  • Inspire the team and people with professional excellence, innovation and communication
  • Possess the aptitude to foresee and understand the macro environment and the goal to see the bigger picture; also teach others to learn the same
  • Lead with social influence

Successes and Challenges in the Field

Adaption towards the next generation immunization supply chain needs improvements across small parts or components of the entire system. In addition to these changes, the need of a change management leader is must, who is capable of driving these required improvements across the supply chain management ecosystem with the power of advocacy and his or her social influence capabilities. With such drives and multilevel end-to-end communications, innovations will flourish and the desired change will be established.

Let’s understand and cultivate the key efficient & effective leadership approaches which help leading successful change management.

  • Ensure that the whole ecosystem is focused towards the change that is desired. It is immensely important to drive the entire system and the people towards one goal. Uniformity will reduce dependencies and this will drive people towards innovations and improvements.
  • Ensure performance recognitions. Creating a space for performance recognitions and conversations drives creativity and helps in overcoming road blocks.
  • Upshift to co-creating future. Gone are the days of the reactive approaches. Today, creative tensions demand immediate resolution and recurring shifts towards co-creation for the sustained future. In a co-creating environment, immunization supply chain focus on three key enablers:
  1. Effective supply chain managers
  2. Concrete supply chain management improvement plans
  3. Data driven future ready supply chain actions

Efficient data management and data driven decision enables the modern-day immunization supply chain management. Such evidence-based decisions and operations allow supply chain leaders and managers to take informed decisions for future developments, evaluate outcomes and performance over a period of time.

People Factor: Key for Change Driver in Immunization Supply Chain Management

Final Thoughts

Towards driving the required change, improvements and sustainability immunization supply chain demands an effective change management leader. In today’s complex business environments, human resource plays a pivotal role in identifying and grooming such a leader who is armed with right skills, accountability and motivation to drive the desired improvements.

As mentioned, effective leadership must be well placed in the context of comprehensive change management. However, there are no short cuts to it; such leadership traits and qualities need to be groomed and cultivated in a formal human resource setting.

 

 

 

Understanding the Relationship between Human Resource Management (HRM) on Supply Chain Management (SCM)

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Understanding the Relationship between Human Resource Management (HRM) on Supply Chain Management (SCM)

While supply chains have been playing a crucial role in several industries for many years, it is only in the past few years that supply chain management (SCM) has been treated as a separate strategic branch which can be improved to benefit businesses.

As soon as SCM started receiving its due importance, there began a search for the factors that affect supply chain and its functioning. While factors like inventory control, product design, industry standards, procedure costs, and distribution strategies were some of the few that were initially discovered to abundantly impact SCM, human resource management (HRM) is the latest to join the list.

While there have been a few studies done in the past to understand the impact of HRM on SCM, the research by the Department of Business Administration of University of Barcelona, Spain, clearly pointed out the relationship between the two.

The purpose of the study was to understand the impact of HRM on SCM which in turn also impacts organizational performance (OP) and customer satisfaction (CS), factors which play an important role between SCM outcomes (SCMO) and HRM.

The study used the previously validated structural equation model (SEM) which is based on five attributes including SCM implementation (SCMI), HRM, organizational performance, customer satisfaction, and SCMO. A survey was conducted on the basis of this model and 231 responses were recorded.

The study confirmed the significant impact that HRM, directly and indirectly, has on the SCMI and SCMO. Overall, the study suggests that successful implementation of SCM can not only help improve SCMO directly but it indirectly also increases OP and CS.

These findings make a very strong case for organizations to apply proven HRM practices to their supply chains to improve SCM to an extent where it starts functioning as a competitive edge. While businesses never thought of SCM as something that could be impacted by HRM, understanding the relationship between the two is simpler than it looks.

Working of a Supply Chain

If the complicated terminologies are sidestepped for a minute, supply chains are nothing but people. The entire chain is a group of organizations which work in downstream or upstream flows of services and products to deliver the final product to the customers.

This ‘group’ of organizations can be within a single company where delivery or supplies and production of products occur or can also be a very complex network of 3rd party suppliers, distributors, sales outlets and service providers. SCM aims to enhance the overall performance of the supply chain along with that of individual firms.

While several organizations have now started recognizing how important SCM is, most of them are yet to understand the fact that successful SCM relies on the people who are part of the supply chain. It is on the basis of the efficiency of the members of the supply chain that the supply chain would function.

There are already several studies that have confirmed that impact of HRM on the performance of the employees. The same practices can be adopted by the human resource department for the people who are part of the supply chain to improve their efficiency and performance.

From recruiting and selection, training and development, to compensation and incentive there are several practices in HRM that can be successfully used to improve the overall SCM.

If all of this is to be said in simple words, it basically means that the performance of the supply chain relies in the hands of people who are part of the chain and HRM is an efficient tool to improve the efficiency of the supply chain members and ultimately improve the supply chain and overall functioning of the organization.

 

Understanding the Relationship between Human Resource Management (HRM) on Supply Chain Management (SCM)

 

Improving Customer Satisfaction with HRM

While the positive impact on SCM through successful HRM practices is clear now, how the same can also help in improving customer satisfaction as the University of Barcelona study suggests?

This relationship too if pretty straightforward. Supply chains are only as strong as their weakest link. For instance, let us assume that you run a business in the USA and import products from China. You’ve selected an exporter and have successfully moved the products through customs and then to the distribution center sooner than expected.

But what if the distribution center delays the delivery to the customers? Your customers would surely be unhappy and this means that the supply chain of your company has failed. It is not difficult to understand that the retail industry relies mostly on customer satisfaction. In other words, the success of your supply chain has a deep relation with how happy your customers are.

So, you see there is an indirect relationship between HRM and CS too. With the help of successful HRM practices, you can improve your supply chain which in turn will help you improve customer satisfaction. There are a few time-proven ways in which supply chain can be improved for better CS. Some of them are-

  • Selecting the right transportation partners
  • Improving logistics planning
  • End-to-end supply chain analysis
  • Using technology for improving visibility and tracking inventory
  • Linking back-end and front-end deliveries
  • Measuring supply chain performance on a consistent basis

While all of these steps revolve around SCM, HRM is indirectly involved in implementing them and making sure that they deliver the expected results.

Conclusion

HRM was always considered a strategy of managing the workplace culture and environment. It is with the help of studies that its impact on other crucial business processes has come to light. With businesses now focusing on SCM to gain a competitive edge, improvements to HRM seems to be an efficient way to directly improve the supply chain and gain added benefits with respect to organizational performance and customer satisfaction.

With the rising competition across every industrial sector, businesses are now searching for innovative ways to improve their performance. Working on SCM is a new and effective way to not just bring more transparency to the business practices but also improve your reach through better customer satisfaction.

Even the traditional HR practices like recruitment and planning, training, and performance appraisal can be applied to the supply chain in order to attain larger benefits which would help organizations gain significant benefits over time.

 

 

 

The Similarities between Human Resource Management and Supply Chain Management

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The Similarities between Human Resource Management and Supply Chain Management

Human resource management is an effective management of the workforce in an organisation. This is the backbone of any business that gives it a competitive edge over others. The quality and productivity of the workforce determines the progress and sustainability of the business. A human resource management system is very similar to a supply chain management system because human resource management handles a chain of inter related departments with diverse job responsibilities working with an aim to achieve a common objective.

Recent times have noticed great developments in the supply chain industry in terms of automation, cost cutting, software aided operations, automated vehicles, etc. The introduction of these new concepts can be beneficial for the Human Resource department too. There is a lot that the human resource management system can imbibe from the supply chain management system.

Supply chain management system works on modularization. This means that the links within a supply chain management are commutable, interchangeable, compatible and exchangeable. The supply chain management system cannot allow any breakdown in the movement of goods and services. Similarly, the human resource management system must also incorporate the concept of modularization in their workforce. This will enable the human resource management system to ensure a continuous flow of workforce and prevent scarcity of manpower. Just as the demand for products is a regular affair so is the demand for talented manpower.

It has to be kept in mind though, that no matter what, humans and products cannot be equated in the same manner and so, the principles and metrics of supply chain management may not necessarily fit in to the human resource management system. The human resource management system will definitely hold its own defined techniques, procedure and practices. The modus operandi is bound to be different for both the systems. However there are certain common modularization practices that the human resource management system can incorporate in its operations:

  1. Outsourcing: Supply chain management involves a lot of channel or outsourced partners. Many HR functions can be outsourced too. Third party deployment can be done for security services, housekeeping, web development, etc. Even a part or all of the hiring requirements can be outsourced to job consultancies.

 

  1. Automation:

    Video Interviews or Interactive Voice Questionnaire can be used to select and filter candidates in the first round. This increases the efficiency of the operations, minimises biasness and saves time on the part of the recruiter. Automated mails can be used to notify candidates about job openings and also to share feedback of the interview to the candidates.

 

  1. Creating Human Inventory:

    Most job openings witness a large number of applicants compared to the number of vacancies. As a result, many good candidates are waitlisted for the next opening. These waitlisted candidates can be kept as reservoir or human inventory. A human inventory will consist of a pool of shortlisted applicants who are qualified and suitable for future openings. This minimises time and effort of the selection process.

The Similarities between Human Resource Management and Supply Chain Management

Every process is unique in its own way. We can derive many useful concepts for every process, be it supply chain or manufacturing. These concepts can be further modified and modulated into process specific approaches and used for overall growth of the business.

Role of Human Resource as compared to Supply Chain Management

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Role of Human Resource as compared to Supply Chain Management

Contrary to normal perception, human resource (HR) is not simply a people-facing function. It’s has a lot in it to be considered as a core-competency in any business. But for some reason, most businesses are yet to realize the full potential of the HR function.  Very often HR fails to get the due credit or empowerment necessary for it as the business is not clear as to what should be expected of it. Because of this lack of clarity, HR is entrusted with unrealistic and unaccountable goals at times and hence, HR seems to be at the receiving end of all the blames and troubles.

Additionally, the quality of talent in HR functions is also not up-to-the-mark. This is expected as they have been brought up on seemingly unclear norms and expectations. As a result, they have not been able to clarify their position or articulate their contribution to the business.

The HR functions in a supply chain industry face a similar fate as well. Here we will discuss how crucial role the HR function can play when it comes to the supply chain processes-

 

  1. Supply of raw materials – We know that it is the duty of the SCM function to take care of the sourcing of and bringing in raw materials. In a similar way, it is the duty of the HR function to bring the best available talents required to operate the business appropriately. HR will partner other departments to ensure that all the important processes are in proper order before the final assessment and selection are made by the functional department. HR does the critical task to ensure that a standard and well-developed capability is followed across the organization and talents are hired through a consistent assessment process. Also, HR needs to ensure that the actual cost of hiring is strictly within the established benchmarks.

 

  1. Transition from raw materials to finished goods – SCM does the work of bringing in the goods and forwarding or making them ready for the next process. Similarly, it is the job of an effective company management to make sure that every employee receives the inputs in a proper way so that he can perform to the best of his ability. Thus, he can contribute to the organizational growth as well as grow himself, in conformity to the culture and values of the organization. This role of the management is overseen by the HR function as it performs the role of the manager to each and every employee. HR keeps an eye that a well-defined and clear process prevails in the organization and every manager is skilled and competent enough to understand this. HR does this by preparing periodic MIS on the health/performance of the talents in the organization and that of the organizational processes as well.

 

  1. Conscience keeper  -HR plays another vital role in keeping the conscience in an organization. It keeps a proper check on whether the operations of a business are consistently conforming to its values or not. It has to stamp its authority and raise alarms if the culture is not supporting to the strategy or there is a deviation from the mission & vision of the organization. In this role, HR needs to work in close collaboration with the top management (CEO and other leadership teams) and must tell the truth in an unflinching and ‘no-nonsense’ manner.

 

  1. Quality assurance and quality check – In a supply chain business, it is in the scope of the SCM to ensure a proper quality assurance and quality check before the goods are forwarded to the next step. In a similar manner, the HR team needs to establish if the entire system of processing the input to output is conforming to the prescribed designs and expectations or not. HR needs to wear the ‘hat ‘of a quality checker at some critical points in the business processes. Also, in collaboration with the managers, it needs to play an important role in quality assurance as well, in order to raise the level of capability of each individual.

 

  1. Taking care of the transactional metrics – Just like every function in an organization is responsible for some core activities assigned to them, the HR team is also accountable for some unique activities. It is their responsibility to keep the compensation benchmarks in an organization up-to-date as per industry standards and ensuring seamless implementation of transparent and consistent policies across the organization are just a few of them. Of course, their functions are multi-dimensional and are not limited by the boundaries of their core competencies.

 

The SCM can benefit by applying the HRM practices in it

From the above discussion, we have seen that there is a definite similarity between the SCM and HRM functionality. In fact, the SCM can apply HRM best-practices to better manage their activities.

 

  1. Use of HRM practices can unify the supply chain

 Various factors such as the globalization of the supply markets, product proliferation, shorter product life-cycles etc have made business environments extremely complex. HRM practices can unify supply chain partners to develop inter-farm relationships and create valuable knowledge-sharing routines. In this way, they can have a more streamlined and coordinated supply chain and gets that much-needed competitive advantage.

 

  1. Better use of ‘people’

The supply chain is a complex network of service providers, raw material suppliers, distributors etc and the success of this network depends heavily on the achievements of people involved in every step herein.

The HR practitioners have put in place effective processes and practices that can improve the performances of the ‘people’ and the firm as a whole. These can be implemented in a supply chain to achieve its ultimate objective- to improve the performance in every step.

 

  1. Availing benefits of HR strategies

A traditional HR strategy refers to developing flexible systems involving HR practices to promote the business strategies of the organization. Application of these strategies in a supply chain provides broader benefits such as better management of SCM partners, better prediction of labor demand/supply across the supply chain and many more.