I interviewed Julio Franca who discussed Part 2 - What Trends will affect the Next Generation of Supply Chains?
1. Please provide a brief background of yourself
Sure. I am a Naval Engineer with a Master in Finance and a MBA at Rotterdam School of Management (top 5 in Europe). I have over 20 years of experience in Supply Chain, having spent ½ of my time as a Supply Chain executive in a FMCG manufacturer, running operations, and the other ½ of my careers as a Supply Chain consultant.
Currently I am one of the founding partners of Spin Consulting (www.spinconsulting.net), a specialized SC boutique who differentiates by deliver fast, tangible and sustainable results to our clients.
Thanks for having me here.
2. This is the second interview in our 3 part series about the top 10 issues affecting the next generation of supply chains. Last time you discussed to first 3 issues. What would you say are the next 3 issues in order of importance?
4. Knowledge work and workers will become global in nature.
5. SCM will have a standard certification process similar to that for CPAs
6. Product clock speeds will determine the number and nature of the supply chains
Knowledge work and workers will become global in nature:
Knowledge work in supply chains today accounts for approximately 40 percent of the total labor hours spent. Much of this work deals with complex analytics, planning, procurement processing, and provision of services. This nature of the work, the need for multi- language support, and the associated local complexities of the different geographies being served will necessitate the seamless globalization of supply chain knowledge work. As an example, you could see a U.S.-centric company performing supply chain planning in the Philippines, operating procurement centers of excellence in Singapore, and conducting global business analytics in Brazil.
SCM will have a standard certification process similar to that for CPAs:
Many universities offer undergraduate and graduate degrees in supply chain management. In addition, professional associations such as APICS, CSCMP, and ISM offer a range of certification programs. However, in most cases these programs either focus on the basics of SCM or on a specific activity such as import/export or financial analysis. I believe that a fundamental shift will occur in the normalized delivery, content served, and certifications of supply chain professionals.
Many other professions like accounting (Certified Public Accountant) and engineering (Professional Engineers) require national board examinations as well as continuing professional education (measured by a specified number of hours per year). I contend that a similar professional credentials program will be required for supply chain professionals to normalize the knowledge base of the incoming resources.
Product clock speeds will determine the number and nature of the supply chains:
I recently worked with a global consumer durables company where over 70 percent of the products had a life span of less than 18 months. Another 20 percent had a life span of three to four years, with the remaining 10 percent exceeding 5 years. This “fast clock speed” life cycle is becoming more the norm than the exception. The days of the steady and static product catalog is past; thinking otherwise, in fact, is a recipe for disaster. However, we continue to find companies using a single supply chain approach to service all segments irrespective of the time constraints. The winners of the future will have the same number of distinct supply chains as there are product clock speeds. In addition, supply chain organizations will need to be aligned by product segments as well as functional segments in a matrix fashion to serve the distinct supply chain needs.