Building the Foundation for Next Generation of Procurement Leaders CPO Network-Procurecon New York, NY November 4, 2013.

Building the Foundation for Next Generation of

Procurement LeadersCPO Network-Procurecon

New York, NY

November 4, 2013

30-Second Commercial

• Established a new Supply Chain Management and Marketing Science Department effective July 2008, with over 30 full-time professors focusing on end-to-end Supply Chain Management,  research, teaching and collaboration with industry.  

• Since 2001, we have had a very successful Rutgers Center for Supply Chain Management currently with over 20 world class corporate partners participating.

• World class research program focusing on sustainability, responsiveness and flexibility, and risk reduction.

• In addition to our very successful MBA program, we have launched a new undergraduate SCMMS program in 2009-now have 500 UG SCM Majors-doubled in each of the last three years.

• Rutgers SCMMS program ranked # 3 in US by Gartner Research and ranked #20 by US News & World

What is the Problem?

Today’s Staffing Environment More than 25% of the working population will reach retirement age

by 2015, resulting in a potential shortage of nearly 10 million workers

During the same period, the replacement pool of 35 to 44 year-olds will decline by 15%.

At the same time, employee commitment levels are also changing Only 47% of Americans say they’re satisfied with their jobs,

dropping for over 60% in a similar survey 20 years ago Workers said they were dissatisfied with their workload,

potential for growth, work/ life balance, performance review processes, and promotion policies in their jobs.

Failing to manage your company’s talent needs is the equivalent of failing to manage your business. And yet the majority of employers have abysmal track records when it comes to finding and retaining talent

Leaders must lead and manage their staffing needs and spend an increasing amount of time acquiring, developing and maintaining their talent.

Additionally, Skill Requirements Continue to Change .. and Your Organization Needs to

Adapt• New processes that didn’t exist 10-15 years ago

– Strategic Sourcing– Supplier Development– Spend Management

• New tools & technologies– Strategic Sourcing Suites– eSourcing Tools– Spend Analysis– Contract Development, Maintenance & Compliance Tools– Supplier Identification Solutions

• Changing markets– Local to Regional to National to Global– Increased factors that drive market volatility

• Higher expectations from the Business and your Supply Chain organizations– The transition from transactional to strategic activities– Continued value contribution

The Role of the Procurement

Professional has Truly Become More Strategic

in Nature

Str

ate

gic

Tact

ica

l2%

10%

10%

15%

43%

20%

4%

12%

17%

22%

30%

15%

6%

15%

22%

26%

20%

11%

Other

New Product & Process Mgmt

Supplier Development

Sourcing Strategy & Analysis

Materials Management

Transactional Buying

1997 20072002Source: Corporate Executive Board Research

Test Question

Which is the Best Recruiting Strategies for New Hiring?

• Internal hiring - Supply Chain• Internal hiring - non-Supply Chain • External hiring• University Recruiting• External temporary staffing• Internal temporary assignments• Outsource non-strategic areas

ALL OF THE ABOVE!!!

Which is the Best Recruiting Strategies for New Hiring?

• Internal hiring - Supply Chain• Internal hiring - non-Supply Chain • External hiring• University Recruiting• External temporary staffing• Internal temporary assignments• Outsource non-strategic areas

First Partner with a University

The Supply Chain Talent Shortage is Real !!!

“The increasingly visibility and importance of supply chain management show a crisis building with increased responsibility,

complexity being driven in part by globalization, and university and professional

programs struggling to independently interpret industry needs.”

“Universities have an opportunity to take a leadership role.”

“Supply Chain Talent: State of the Discipline”AMR Research, April 2008

Critical Success Factors for a Supply Chain Department

Leading Edge

Knowledge & Research

Partnering with

Industry

Excellency in

Teaching &

Students

Partnering with Industry

• Leverage a Center of Supply Chain Management (if Available)

• Foster closer collaboration- close the gap between faculty research and business needs

• Demand executive education programs on Campus and In-House

• Visit the Campus Frequently-Guest Speaker, Lunch & Learn, Case Competition

• Provide “win-win” internship, Co-ops and projects for students that leads to no risk hiring

• Focus on end-to-end supply chain

Recruiting the Next Generation of Graduates

• Leverage the “new breed” of Supply Chain Management and Global Procurement graduates

• Many are dual degrees

• Look for opportunities to “test the waters” through internships/Co-Ops or Projects

• Different core values than other generations

• Due to talent shortage will have more turnover

• Will need a multi-prong strategy to make it work

Students(Rutgers SCM Majors) are in Demand

MBA SCM Summer Internships (Class of 2014)

• 32 SCM Majors, 37% of the Full-Time class

• All 32 Students or 100% had Summer

Internships • Quite a Record-6 Years Running 100%

(2008, 2009, 2010, 2011, 2012 & 2013) (Most of these Years were During a Recession!)

17

MBA SCM Summer Internships (Class of 2014)

Companies• Novartis• J&J (PDLP)(3)• Bayer• Verizon• Colgate• Qianfang Holding• Kuehne + Nagel

• JP Morgan• Dell• Pepsi• SBS Group/Siemens• Motorola• Ferrero• Corning• Mars• Ohm Laboratories

(2)• Ashland, etc.

18

MBA SCM Full Time Jobs (Class of 2013)

• 25 SCM Majors or 35% of the class (2

students not seeking)

• 23 Students or 92% got Full Time Positions

• Judged 90 Days after Graduation

19

MBA SCM Full Time Jobs (Class of 2013) Companies

• Estee Lauder• Verizon (2) • Novartis• Pfizer• J&J (2)• Deloitte• Panasonic

• Dell• MasterCard• Quest

Diagnostics• Phillips Lighting

(2)• Ralph Lauren• Lord & Taylor• IMS Health• Anbakam Metals20

Getting the Most from Internships/Co-Ops1. Formalize the Internship Program2. Identify Jobs to be Filled3. Set Compensation Plans4. Prepare Relocation Plan (if applicable)5. Recruit Interns and Fill positions6. Manage Interns’ Activities and Progress7. Add Sizzle to the Experience8. Extend Job Offers and Fill Positions

After the Internships…..if it is a marriage

Step 9: Offer a Full Time Job

No Risk Hiring?

Now You Got them, What is Next?

Retaining Top Talent• Manage your High Potential People First, but …

• Frequent Career Discussions

• Retention Program for Key Employees

• Rotational Assignments

• Special Assignments

• Top Management Exposure

• Take Risks on People

• Recognition is More than Money

• Leave the Door open if they Leave

Summary :Building the Foundation for Next Generation of Procurement Leaders• Now and in the future, talent management will

determine the success of your Procurement organization.

• Next Generation of Procurement Leaders must come from all available sources, including universities

• Students are In-Demand-Must have a robust Internships and Co-Op Program

• Develop a formal strategy and program for retaining your best talent

• Partner with a top Supply Chain Management university (Rutgers, of course…)

Don KlockProfessor, Supply Chain Management Rutgers University973-353-5678 [email protected]

Thank You !!!

Questions