Why you need to know about supply chain management

CANNEXUS 2015

• Brief introduction to SCMA• Why this sector is emerging in importance.• What is strategic supply chain management?• What is the difference between a professional

designation and an academic credential?

AGENDA

THE SCMA ADVANTAGE

• Established on September 3, 2013 as the result of an amalgamation of the former Purchasing Management Association of Canada and the former Supply Chain and Logistics Association of Canada

• Premier end-to-end association for Canadian supply chain professionals

• Over 7,500 members across Canada• Grants the SCMP designation – highest level of achievement in the

field• Provides Continuous Professional Development opportunities to

members and designation holders (conference, Symposium, webinars)• Unparalleled learning and networking for SCM professionals

ABOUT SCMA

THE SCMA ADVANTAGE

Why is this Sector Important?

THE SCMA ADVANTAGE

5

Prime Minister Stephen Harper, left, watches President of the European Commission Jose Manuel Barroso speaks as they announce a free-trade agreement between Canada and Europe during a press conference in Brussels on Friday Oct. 18, 2013

Canada, EU unveil ‘historic' free-trade agreement

A firefighter inspects a burnt garment factory after a fire in the Bangladeshi town of Gazipur, 40 km (25 miles) north of Dhaka on October 9, 2013. (REUTERS)

Bangladesh factory fire exposes faults in subcontracting

iPad mini with Retina display faces supply chain delays Reuters, October 03, 2013

Apple Inc will be unable to widely roll out a new version of the iPad mini with a high-resolution

"retina" display this month, people who work in the company's supply chain said, leaving the gadget

without the sharper screen found on rival tablets from Google Inc and Amazon.com Inc.

THE SCMA ADVANTAGE

WHY IS THIS SECTOR IMPORTANT?

Target Canada's supply chain gridlock - how Barbie SUVs snarled traffic

The Canadian supply chain sector employs an estimated 767,000 workers.1. Senior Management 1.2%2. Logistics Information Systems 5.5% 3. Warehousing

45.2%4. Transportation 22.1%5. Inventory/Material Control 14.1%6. Purchasing

10.6%7. Marketing and Sales 0.5%

Canadian Supply Chain Sector Council – 2012 Labour Market Study

WHY IS THIS SECTOR IMPORTANT?

THE SCMA ADVANTAGE

• Sector is facing shortage of skilled employees as experienced employees retire and demand rises.

• Recruitment is a challenge due to low awareness of the sector• Employees seen as lacking critical skills (numeracy, literacy,

leadership), despite Educators’ and Employees’ impressions that these skills are being taught.

• Talent pool is small and diminishing (due to poaching and retirement). • Companies are competing for the same resources at all levels

(managerial, tactical, or operational).

KEY FINDINGS

THE SCMA ADVANTAGE

• Approximately 66,000* new and replacement positions are required annually for the next five years to meet needs associated with demand growth, retirements and workers leaving for positions outside of the supply chain sector.

• Turnover rate is highest for Senior Management, Operational Warehousing and Managerial Marketing & Sales positions.

EMPLOYMENT DEMAND

THE SCMA ADVANTAGE

* Based on the findings of the Canadian Supply Chain Sector Council – 2012 Labour Market Study

Expected growth in demand evident across all categories and sub-functions

Total(n=1,357)

Occupational Category and Sub-function Mean % Change 5 Yrs

Managerial Senior Management 12.4

Logistics Information Systems 12.9

Warehousing 10.3

Transportation 9.3

Inventory/Material Control 8.9

Purchasing 8.8

Marketing & Sales 14.9

TacticalLogistics Information Systems 11.8

Transportation 8.4

Inventory/Material Control 9.8

Purchasing 9.6

OperationalWarehousing 10.9

Transportation 9.2

Total: All Positions 10.6

THE SCMA ADVANTAGE

Canadian Supply Chain Sector Council – 2012 Labour Market Study

SKILLS NEEDED IN THE NEXT FIVE YEARS

Total(n=773-1197)

Atlantic(n=18*-

32*)

Quebec(n=52*-

98*)

Ontario(n=207-

284)

Prairies(n=90*-

119)

BC(n=53*-

77*)

North(n=1**)

% % % % % % %Computer skills 69 72 62 74 69 64 **Project management skills 60 61 55 65 59 60 **Negotiation skills 58 66 49 60 70 59 **Customer relations skills 56 59 51 58 64 55 **Analytical skills 55 63 35 64 61 58 **Critical thinking skills 55 63 37 62 63 61 **Optimization of workflow 50 45 37 55 59 45 **Knowledge of intn’l business practices 48 55 50 57 53 47 **Operational planning 48 64 36 54 47 46 **Supervisory &/or management skills 48 64 36 51 54 57 **Knowledge of laws and regulations 46 48 37 52 58 46 **Financial planning and forecasting 45 48 39 51 42 44 **Integrated supply chain skills 43 50 46 52 50 45 **Knowledge of transportation systems 33 42 30 36 40 32 **Mechanical skills 17 17 8 20 11 13 **

THE SCMA ADVANTAGE

Canadian Supply Chain Sector Council – 2012 Labour Market Study

Total (n=289)

Atlantic (n=17*)

Quebec (n=41*)

Ontario (n=121)

Prairies (n=53*)

BC (n=37*)

% % % % % %

Range of positions/potential for progression 34 41 29 36 32 43

Pay/benefits 24 24 27 22 28 16

The work itself/variety/diversity 23 12 27 24 23 27

The skills/knowledge acquired 20 18 12 25 21 16

Global/the wide reach of SC 14 12 15 16 11 14

People (clients, customers)/collaboration 12 29 15 11 15 5

Delivering profit, service, decisions/see results 12 6 5 14 15 11

The challenges 11 12 2 15 13 5

Prestige 10 6 17 12 2 8

Job security 10 12 7 9 9 11

TOP 10 MOST ATTRACTIVE ASPECTS OF SECTOR

THE SCMA ADVANTAGE

Canadian Supply Chain Sector Council – 2012 Labour Market Study

What is Strategic Supply Chain Management?

THE SCMA ADVANTAGE

DefinitionThe process of strategically managing flows of goods, services, finance and knowledge, along with relationships within and among organizations, to realize greater economic value through:• Supporting enterprise strategic objectives • Contributing to the achievement of strategic competitiveness of the

enterprise • Contributing to the enhancement of the competitive advantage of the

enterprise • Enhancing customer satisfaction

WHAT IS STRATEGIC SUPPLY CHAIN MANAGEMENT?

THE SCMA ADVANTAGE

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THE COMPETENCY PROFILE OF A SUPPLY CHAIN MANAGEMENT PROFESSIONAL

Functional Competencies• Supply Chain Management• Procurement and Supply Management• Logistics and Transportation• Operations and Process Management• Knowledge Management• Global Sourcing• Supply Chain Management for the Public Sector• Supply Chain Management for Services, Capital Goods and Major

Projects• Competitive Bidding, Contract Preparation and Contract Management

THE COMPETENCY PROFILE

THE SCMA ADVANTAGE

Management Competencies• Leadership and Professionalism• Negotiation Skills• Communication and Relations Skills• International Business and Multi-Cultural Skills• Ethical and Social Responsibility Skills

THE COMPETENCY PROFILE

THE SCMA ADVANTAGE

THE SCMA ADVANTAGE

SCMA EDUCATION PROGRAMS

• Two streams: tactical and strategic• Supply Management Training (SMT) – entry-level, skills-based,

tactical learning• Supply Chain Management Professional (SCMP) Designation –

leadership program focused on marrying tactical ability and strategic thinking

• Classroom and self-study programs• Online delivery launched in September 2013• On-site training courses• Continuous Professional Development opportunities

• Entry-level training in SCM• No membership or pre-requisites• Four technical courses – intro to all aspects of

SCM• Basic business skills seminars• Interactive seminars that cross over with SCMP• Bridging to SCMP program in development• Online delivery for technical courses fully

launched

THE SCMA ADVANTAGE

SMT CERTIFICATE PROGRAMS

• Dynamic advanced training for SCM professionals• Competency-based and strategically aligned• Covers all aspects of SCM and includes soft-skills • Work experience & university degree pre-requisites• Training in leadership, communications, and negotiation• Prepares graduates for management and senior management roles• CPD required to maintain designation• International designation reciprocity agreements with ISM/CIPS• First designation program in North America to achieve IFPSM's Global

Standard

THE SCMA ADVANTAGE

SCMP DESIGNATION

Professional Designationvs.

Academic Credentials

THE SCMA ADVANTAGE

• Demonstrate successful completion of a course of study• Multiple institutions can great that same credential with

widely ranging quality/entry requirements (e.g. MBA)• No accountability for grads• May be delivery agents for professional designation

training, which blurs the lines

ACADEMIC CREDENTIALS

THE SCMA ADVANTAGE

• “warrant of professional behaviour”• Competence, expertise and ethics• Ongoing accountability (CPD or recertification as well as

maintaining membership)• Complaints and discipline processes, Code of Ethics• Practical experience always a component• Built on competencies• Only one designation authority - consistency

PROFESSIONAL DESIGNATIONS

THE SCMA ADVANTAGE