Introducing Time-Critical Service, only from YRC.Any need. Any speed. Guaranteed. No matter what you want to ship — retail itemsto manufacturing equipment — whenever it has to get there, one location or many,big or small, simple or complex, we’ll make it happen. No ifs, ands or buts. That’sTime-Critical Service. That’s Confidence Delivered. ®Text “YRC” to 27810 for details and more case studies.1-800-610-6500 yrc.com/timecritical©<strong>2011</strong> YRC Worldwide Inc.ConfidenceDelivered. ®
Pearson onSupply chain masteryrequires talentcompanies responded to the economic downturnin diverse ways. Many streamlined operations andbecame more efficient. Some invested in new technology,capital, and infrastructure. But not too manyfocused on acquiring exceptional people or luring talentfrom less fortunate companies.However, the latter move—enhancing skill sets—could end up paying the biggest dividends, particularlyas cost cutting reaches its natural limits andtechnology assets are deployed more or less equallyacross competitors.Leveraging talent is far more complex than justacquiring the right bodies. In supply chain managementcompanies need “human capital strategies” thatmaximize their people potential by integrating operationalperformance objectives with the organization’sbig-picture goals. But how do you create a humancapital advantage? Following are three cornerstones.1. Remove complexity. Minimizing supplychain complexity is one of the best ways to createmore efficient, more agile organizations that canrespond rapidly to existing and emerging consumerdemands. From a human resources perspective, lesscomplex supply chain processes and structures allowcompanies to leverage talent more effectively. Plus,an agile organization is a strong drawing card forattracting and retaining the best people.A natural starting point for reducing complexity isto identify the operational and organizational improvementsmost likely to affect business results. Anexample might be a retailer that focuses on improvingfulfillment without raising inventory costs. To do this,Lean Six Sigma and advanced analytics could be leveragedto more effectively link process improvements,business performance, and organizational priorities.When it comes to complexity reduction, companiesfocus too often on obvious pain points (reducingbudget overruns, eliminating transport delays,reducing employee turnover) rather than on the rootcauses of complexity. More often than not, the rightcomplexity-reduction rationale is increased agility.Supply chains that attack and remove process andorganization complexities are “suddenly” able toMark Pearson is the managing director of the Accenture’s SupplyChain <strong>Management</strong> practice. He has worked in supply chainfor more than 20 years and has extensive international experience,particularly in Europe, Asia, and Russia. Based in Munich, Markcan be reached at mark.h.pearson@accenture.comrespond more quickly to shifting markets, changingcustomer demands, and new value paradigms.2. Create environments for supply chaintalent to succeed. Several characteristics are oftenpresent in companies where supply chain talentflourishes. Among the most important is role clarity,which in turn drives predictability and accountabilityin the execution of supply chain processes. Whenan organization rigorously follows competency standards,people at all levels of the organization knowwhat they must do to execute their jobs well.With clearer supply chain roles, skills-managementleaders may be able to hone their talent strategies by:• Segmenting the workforce (e.g., based on learningstyles, values, personality, wellness profiles, mobility).• Offering modular choices from a list of definedand sanctioned alternatives (e.g., international jobrotation opportunities).• Putting more emphasis on innovation (like Google’sinsistence that engineers spend 20 percent of theirtime on projects that create value for the organization).Flexible learning and training systems also helpto create a talent-optimized workforce. Ideally, thisinvolves structured learning combined with deploymentof multiple information sources such as socialmedia. Insights from conference calls, presentations,and third-party vendors can be turned into short podcaststhat are rapidly and easily accessible to workers.Cross-training through job rotations or collaborationsis another, important part of the learning/training mix.3. Align talent and supply chain analytics.In addition to using descriptive analytics to determinewhat happened and why it happened, companiescan now leverage predictive analytics that usesophisticated statistical modeling, forecasting, andoptimization to help forecast business outcomes anddetermine how supply chain activities relate to thosepredictions. Organizations seeking to leverage theirskills base can use analytics in much the same way topredict the talent needed to optimally staff their organizationsand deliver on consumer expectations.Though unemployment is high, there is a shortageof ultra-skilled talent—people who can helpcompanies move ahead in ways that are economical,sustainable, and difficult for competitors to replicate.That is why the three approaches discussedabove, pursued as a single, integrated initiative, areso important. M20 <strong>Logistics</strong> <strong>Management</strong> WWW.LOGISTICSMGMT.COM | <strong>October</strong> <strong>2011</strong>