The 10 Pillars of Supply Chain Leadership

Supply chain leadership. In this article from ASCM, 10 pillars are identified.

Effective Leadership in the Supply Chain

Effective leadership in the supply chain has never been more crucial. The people who manage planning, procurement, production, delivery, and recycling—while simultaneously guiding those who perform these essential activities—are truly the heroes of our global economy. Amidst ongoing extreme weather conditions, supply shortages, war, a pandemic, and more, organizations must determine how to move beyond managing disruptions to return to a growth cycle. Great supply chain leadership is vital to this goal. It enables the attraction of top talent, the integration of all functional aspects of the supply chain, the identification of cost-saving opportunities, increased efficiency and quality, and the creation of real value.

Interestingly, McKinsey reports that working in the supply chain offers an easier path to leadership in the sector compared to similar paths in other fields. Because supply chain management functions are so interconnected, a supply chain professional in a specific area typically possesses at least basic knowledge of most other areas, making it easier for aspiring young professionals to advance. Furthermore, because supply chain professionals deal with constant change and risk, they possess better forecasting skills than those in most other roles, which can be a distinguishing factor in the C-suite. And it is certainly worth getting there: top supply chain leaders enjoy annual compensation of up to $192,000, plus benefits and bonuses.

10 Pillars of Supply Chain Leadership

There are 10 key traits and skills that help professionals make the transition from supply chain management to supply chain leadership. Read on to discover the specific skills that supply chain leaders use to win the respect and trust of team members and become highly effective:

Managing Operations

Managing operations requires in-depth supply chain knowledge acquired through years of practical experience and professional development. A supply chain leader’s experience and knowledge must be both tactical and strategic, allowing them to manage operations while simultaneously handling risks and planning for growth. Furthermore, over 20% of companies have a Chief Supply Chain Officer, and 38% have a C-suite executive with similar responsibilities. Members of supply chain leadership must hone their strategic skills to effectively represent this critical business function at the boardroom table.

Managing People

Managing people begins with identifying potential talent and helping these candidates grow within the organization. This includes supporting on-the-job training and investing in professional development as individuals progress. Of equal importance is the need to support employees as human beings. Employees must be given the space to grow. They should be coached in resolving mistakes and learning from them. They also need a work-life balance so they can rest, recharge, and be present for their loved ones. Benefits such as flexible working hours, paid leave, and opportunities for remote or hybrid work support this work-life balance.

Collaboration

Great supply chain leaders encourage collaboration and inspire team members to share ideas and workloads. This also means encouraging input from diverse groups to ensure that all ideas are respected and considered.

Communication

Communication is essential for the vision, strategy, and expectations that keep employees informed of progress and changes. This allows followers to support the supply chain function and its key objectives.

Conflict Management

Tensions will arise, so it is necessary to possess conflict management skills to handle these issues by remaining calm, being a voice of reason, focusing on the positive, addressing the problem, and negotiating a solution.

Emotional Intelligence

Leaders must not reduce people to their jobs, and this requires emotional intelligence. It is necessary to take the time to understand people’s concerns and challenges, both at work and beyond. Empathy is crucial to helping people through challenges. Additionally, leaders should express joy when team members do a good job or achieve a goal to inspire them and show that efforts are appreciated.

Foresight

Top supply chain leaders have the foresight to embrace innovation and are early adopters of emerging supply chain technology. This makes them better able to position their organizations as supply chain leaders rather than followers.

Listening Skills

Frontline workers possess valuable insights, so leaders must use their sound listening skills when employees suggest ideas and report challenges. This builds even greater trust.

Continuous Learning and Growth

Supply chain management never stands still, so quality supply chain leadership depends on continuous learning and growth. This is the only way to meet the needs of supply chain organizations and the people they serve.

Responsible, Ethical Business Practices

Truly impactful supply chain leaders are not only committed to responsible, ethical business practices, but also inspire the same passion in their people. They seek solutions that help them create sustainable supply chains; enable their organization to achieve its climate goals; and design and manage networks that prioritize the triple bottom line, delivering profit and excellence while protecting society and the planet.

Will You Become a Leader in the Supply Chain?

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This article was originally published by ASCM.