The past three years have been unprecedented within the supply chain; where in the past, the supply chain had been a strength of the country, it is now challenged in multiple facets.

Let’s look at what happened.  

Covid was the catalyst. Covid brought with it many headwinds for the supply chain.

First, the shutdowns were caused by both outbreaks and the wonderful phrase “abundance of caution”. These caused the supply chain to get out of sync, for starters.

Second was the Government giving away money, which resulted in workforce participation going to extremely low levels.

Third, the baby boomers retired. This was the largest team of supply chain workers ever.

And lastly, work-from-home or hybrid jobs became much more desirable than working in the supply chain on-site.

When you combine all these together, the supply chain needs to rethink and recreate itself.

What will it take to rebuild the supply chain?

It starts with building a culture that wants to work in the supply chain, and increasing wages is just a piece of that. There are a few key aspects of creating the right culture for resiliency and performance excellence in the supply chain. They are detailed below:

Staffed, Stable and Capable

Supply chain teams of the future must be fully staffed, investing in training and building capability for future needs and technology. The days of “forced overtime” in the supply chain are over. People must see a future for themselves. 

Invest in the Facility

Supply chain facilities are now competing with homes and beautiful office buildings for talent. You should want a facility that is clean and updated enough that you want to show your family where you work.

Invest in common areas, restrooms, security, lighting, workstations, and free drinks and snacks.

Purposeful recognition

Recognition strategies must be developed to show genuine care and concern for your best performers and the people that come in each day and bring their best. The strategy must be all-encompassing to include birthdays, anniversaries, and holiday recognition. Remember, the supply chain does not sleep or get every celebrated holiday off. Everyday meaningful, purposeful recognition builds your brand.

Servant Leadership

Supply chain jobs are stressful. Leaders should create an environment of servant leadership where they consistently eliminate performance obstacles. They should listen to their teams and develop solutions with them. Leaders need to have positive intent in all conversations to build trust. Communication should be very clear and transparent.

While these strategies are not all-encompassing, they are the building blocks for a successful supply chain. Five years ago, the supply chain was considered a stable long-term career. We need to transform the culture to return the supply chain to its glory days of low retention, great service, and constantly increasing efficiency.

This article was contributed by our expert Steve Bucholtz

Frequently Asked Questions Answered by Steve Bucholtz

Q1. How to implement supply chain management in food and beverages?

To implement supply chain management in food and beverage starts with developing a strategic vision and focus. That will enable you to develop an operating model to support the business effectively.

Q2. What are the major drivers of supply chain performance?

The major drivers of supply chain performance are building a performance culture and creating an amazing delivery and service agenda with velocity and efficiency.

Q3. How can we improve sustainability in supply chains?

The easiest way to improve sustainability is through electric and natural gas fleets that optimize miles.

Q4. What are the most important ways to build resilience in global supply chains?

Building resilience is about being staffed, stable, and capable at all levels of the organization and ensuring your strategic partners are in the same belief.