Inclusion as the competitive advantage

Key trends driving the need for more women in supply chain

The increasing adoption of intelligent robotic automation is changing the nature of work and impacting the end-to-end supply chain. Although primitive automation began in the 1970s,⁹ today’s machine learning and artificial intelligence (AI) are a giant leap forward for the industry. As emerging technologies such as self-driving cars,¹⁰ digital voice assistants,¹¹ and robotic process automation¹² redefine tasks, many traditional jobs are being combined. For example, previously “siloed” activities such as logistics planning, coordination, and freight payment might be executed by one role or individual in the future, with the help of technologies like blockchain and the Internet of Things (IoT).

Further, to execute this as an integrated process, traditionally segregated logistics and distribution roles, such as logistics coordinators and billing specialists, might be consolidated—requiring individuals in the new roles to have knowledge of additional supply chain and non-supply-chain processes. In this way, individual workers would need knowledge of the organization spanning the end-to-end value chain, the skill set to collaborate cross-functionally, and the ability to adapt in a dynamic landscape.

“You need a blend of talent,” says Caryn Seidman-Becker, CEO of CLEAR.¹³ “You need those folks who can dream a product, those who can build the product, and the ones who can execute product delivery. Sometimes the best coders are poets. It’s really balanced, and we need a lot of each.” For many businesses, winning the skills war is becoming less important than nurturing the enduring human capabilities that underpin the ability to learn, apply, and effectively adapt them.

With that said, the supply chain industry is currently undergoing a significant skills shortage, which is exacerbated by rapidly evolving roles that are becoming increasingly harder to fill, according to a recent Deloitte report.¹⁴ Actively recruiting more female candidates may enable companies to cast a wider net and may be a compelling approach to addressing the skills shortage and driving supply chain forward.

As previously mentioned, there is currently a gender disparity in supply chain with 11 percent fewer women working in supply chain compared to other industries.¹⁵ Why might this be the case? Let’s look at an example from the manufacturing industry. According to a 2015 Women in Manufacturing study,¹⁶ two-thirds of respondents from the manufacturing workforce indicated that their organization did not have active recruitment programs tailored to female candidates, and further, only one-third reported that their employer was good at recruiting, retaining, and developing female talent.

The good news is—if companies desire to expand their target recruiting pool, there are strategies designed to help move the needle in the short and long term. In fact, pursuing avenues to widen the net and broaden the company workforce may help attract potential candidates. According to a 2017 Deloitte survey, 80 percent of respondents indicated that inclusion is important when choosing an employer and 39 percent indicated they would leave their current organization for a more inclusive one.¹⁷

Assessing your company’s inclusion readiness

Before diving in further, let’s first define diversity and inclusion. Diversity is the different skills, backgrounds, attributes, and perspectives that we each bring to the table. Inclusion is leveraging what makes each person unique in a way that encourages them to be authentic and feel that they are valued. While there is room for companies to improve in both regards, inclusion efforts (e.g., inclusive leadership, fostering inclusive team environments) will be critical components in the long-term strategy of bolstering a strong workforce of female talent in the supply chain space.

Many organizations understand the importance of increasing the number of women in supply chain and are seeking avenues to do so.¹⁸ Demonstrating a commitment to and culture of diversity and inclusion may help with these efforts because, as mentioned above, candidates are seeking for inclusive organizations.¹⁹ Knowing where your organization lies on our diversity and inclusion maturity model, a tool that can help leaders envision steps necessary to progress along the curve toward inclusion, can be a valuable first step in creating an actionable strategy for long-term growth (figure 1).

Strategies for hiring and retaining more women in supply chain

Historically, supply chain roles evolved around functional expertise that focused on optimizing segments of the supply chain using periodic analytics. The future will likely be highly dependent on digital supply networks with connected customers, suppliers, and functions. New roles will emerge that require a more complex and broader knowledge of key functional areas such as synchronized planning, warehousing, and autonomous logistics.

The workforce of the future demands leaders who inspire confidence and recognize an individual’s unique value. In our research and experience,²² the most mature and “integrated” institutions on the inclusive scale often do the following five things:

• Set the tone for diversity and inclusion at the top and drive accountability through the entire organization
• Understand that diversity without inclusion is not enough
• Focus on inclusive leadership
• Embed inclusion into the talent strategy
• Continuously evolve the diversity and inclusion approach as business and talent priorities evolve

So, what can you do today to move the needle on modernizing your inclusion approach and ultimately welcoming more women into the supply chain fold? We present a few considerations:

• Assess your stage in the maturity model. In which areas are you lagging or leading in terms of ownership, workforce, incentives, and support systems? How can you attract and retain more women in supply chain?
• Deep dive internally to understand the current landscape of women in your supply chain function and if there are any pain points for attraction and/or retention that can help tailor your approach.
• Refine and groom your talent pipeline to match the changing skill sets. Once you understand your place on the maturity scale, consider ways to identify and foster talent for the future. That could include sponsorship with female STEM programs or collaborating with existing organizations.
• Integrate your planning. Not only can AI-driven²³ processes help improve both your front-end and back-end operations with more accurate demand data, they can be used to orchestrate both your supply chain talent and address inclusion gaps.
• Empower your organization through team, talent, structure, and policies built on cognitive diversity and inclusion. Understand what actions and metrics will drive organizational alignment across all levels on inclusive culture.

In a 2017 Deloitte survey,²⁴ 86 percent of respondents said that in 2016 their organizations were doing everything they could to create a workforce for Industry 4.0. In 2017, however, as more respondents recognized the growing skills gap, only half said their organizations were doing everything they could to fill the gap and develop the talent needed to compete for the future.

Obviously, inclusion won’t happen overnight. But progress can be made, especially after an honest self-assessment about your organization’s current maturity level. From there, it’s all about a focus on pipeline refinement and enacting policies that help your inclusion and profitability targets, which are, no doubt, inextricably linked. After all, inclusion is a massive opportunity for the supply chain profession as well.