Sep
19
So you want a career in supply chain management
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One of the most common questions I get asked is how to get a career in Supply Chain Management. As we all know, the supply chain has become vital to most organizations and those charged with the role of managing this complex behemoth can be rewarded with a rich and fulfilling career.
Supply Chain Management jobs have developed over the years from simply transactional (raising Purchase Orders, Booking in stock) to becoming strategic (managing relationships and critical business issues). A companies ability to compete relies more on its supply chain than ever before. As such an organization’s supply chain people become a vital part of the corporate machinery.
Luckily there are various routes open to those looking to get an in into Supply Chain Management jobs.
Using education to kick start your supply chain career
For those looking to use University or Education to get their first step on the ladder, there are a growing number of Masters courses (which cover the basics and beyond from logistics, procurement through to disciplines like Project Management). Successful completion of these courses normally advances the candidate into a suitable supply chain management career with students looking to gain entry into an industry often those with appropriate graduate courses.
While programs such as these are gaining in popularity (with many being supported by professional bodies such as CIPS) many senior supply chain personnel have come up through the tried and tested method of experience having worked up from the bottom. For those looking to develop their career as they go, organizations such as CIPS can be extremely beneficial allowing those to learn while they work on the job.
On the job training, such as this, offers excellent insight into an ever-evolving business landscape – for example for those looking to learn about the rapid expansion of global supply chains there are a variety of courses focusing on international trade. Courses such as these are especially useful for people who are looking to diversify from years experience from within a particular industry type and who are looking to broaden knowledge and capability (and of course make themselves more employable.)
Starting out with a career in supply chain
While some supply chain professionals start with a college or university qualification not all do. Supply chain, unlike many fields, offers the ability to start your career from almost anywhere. For those starting the key step is usually getting a foot on the ladder. For many this might mean looking at a more transactional based role, sometimes in a junior position. This is the tried and tested route and provides the incumbent with time to develop their skill set which will help drive promotions. Skills such as soft skills, analytics and using the right problem solving model to help resolve the challenges and issues that are likely to present themselves.
Many who start this route will work their way up an organization before moving on. These individuals often draw upon formal bodies (like CIPS) to learn while they earn.
Interim / Contract Supply Chain roles
Supply chain employment opportunities have changed dramatically in recent years and there are now significant opportunities for those specializing in the supply chain who are looking for interim or contract work. These roles are typically suited for those who may specialize in a certain field, Logistics or manufacturing for example together with core skills.
For those considering interim work, this can often be a stepping stone into a supply chain career. For example, those individuals with project management experience might find themselves working in a supply chain environment which might enable them to garner skills that can then be used in future supply chain environments.
Whichever route you follow one thing is for sure, Supply Chain can offer you a rich and rewarding career full of diversity challenge and if you get get the right role and company great remuneration.
Sep
18
It’s not me its you. Exiting a supplier? Here’s some things you’ll want to think about
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You know how it is, in the early days you’re flushed with enthusiasm, their product is fantastic and the sales guy has showered you with their plans for how your the number one client and they think you’re amazing and they see a bright collaborative future together.
Further down the line and all those things become a distant memory. Perhaps their performance doesn’t meet your requirements – perhaps the product is tired and there is a new kid on the block, perhaps they are not as cost effective as they once were. Whatever the reason it’s time to exit the supplier.
Most organizations have two forms of supplier relationship:
* Informal supply – ie ad-hoc procurement outside the bounds (other than the purchase order) of a formal commercial agreement – ie a distributor whom you raise ad hoc requirements against but have no formal commercial agreement
* Formal supply – a commercial agreement is in place and/or statement of work
Both types require some strategic thinking:
When starting out with a supplier it may not seem the time to focus on potential exit agreements, but this is the best time to be thinking of that potential outcome. If you leave it to when you are exiting the relationship or on expiration of an existing commercial agreement, things may not work out so well for you. Indeed, if the correct framework isn’t in place it can become a tortuous process particularly if your calling your supplier into breach.
So what is there to consider? There may be a variety of issues depending on the type of service/component that your purchasing. The key things to consider usually contain the following:
1/. What assistance is required from the supplier during the exit process.
2/ Is there a commercial settlement – ie a termination fee as part of your contract or is there likely to be one?
3/ Is anything required by the buyer to continue business post exit, ie tooling, proprietary knowledge, people etc. If so is it hard/easy to obtain?
4/ Does the buyer need any particular rights of access post exit –for example for hiring labor by the buyer from the previous supplier.
Remember you’re looking for a smooth (and easy) transition. Consider upfront what you may need to put in place for that. Getting this wrong will likely resolve in a much higher termination settlement or costs than if it’s pre planned.
It’s unlikely in reality that you’ll consider all exit requirements at contract signature, you simply may not be aware of things or you may not be able to reach agreement. Therefore aim to use the initial agreement to set out the minimum requirements. Do this in as much detail as you are able and establish an action/ obligation on the buyer and seller to periodically update that exit plan adding further detail when it becomes known (An ideal action for your quarterly business reviews)
Irrespective of any commercial framework as a buyer you can also protect your organization by aiming to capture and retain knowledge of the product/service supplied.
Breaking up is always hard to do. In the world of supply chain it remains a common but for the most part challenging process. The more effort you put up front the easier it should be.
Have you had to exit a supplier? Any tips and tricks you’d like to share with our readership? Please use the comments section below.