The benefits of Fourth Industrial Revolution technologies for supply chains are clear – greater operational efficiency, sustainability outcomes, and resilience.
As companies are deploying these digital solutions throughout their organisations, they are faced with a challenge – how to ensure their people develop the skills needed in this new, more digital supply chain. Here are four aspects any supply chain leader should consider.
Digital Supply Chains must be Human-centric
The manufacturing industry is facing a huge labour shortage. According to the World Economic Forum, more than 10 million manufacturing positions are open today.
Ther’es no denying AI and machine learning have made significant advancements in recent years. However, people remain the backbone of any successful supply chain. Why this labour gap? One significant cause is the higher demand for tech skills.
As companies go through digital transformation, ensuring people remain at the heart of their supply chain strategy is critical. It’s a simple equation: training current industrial talent for the digital world while also investing in the new generation builds a more vibrant, efficient, and future-ready operation. It’s unlikely we will see a sudden surge of digital supply chain talents on the market soon. Therefore, the most obvious step for organisations to take is ensuring their workforce is upskilling and reskilling for the future.
Between 2021 and 2023, Schneider Electric increased digital talents across our supply chain organisation by 67%. This upskilling took place from the shopfloor to senior management. Here’s how we did it.
Reskill, upskill: connecting and nurturing digital skills in shopfloor employees
No matter how advanced technology becomes, it is the people at the ground level who are its primary users. Employee skills can make or break the success of implemented technology. Any digital skills strategy must be inclusive and include your employees working in your factories and distribution centres.
At Schneider Electric, we are equipping our shopfloor employees to become data-driven wizards and automation gurus. One critical step is ensuring they are digitally connected.
We have connected approximately 40,000 employees across 175 factories and distribution centres to a digital communication tool, enabling them to receive and send communication in real-time.
This breaks down traditional barriers and connects the shopfloor teams to managers and remote experts. It also ensures the team has greater access to knowledge and problem-solving, sharing best practices and troubleshooting tips across sites. This helps us scale best practices, including digital solutions, across the organisation.
You can’t change what you don’t measure. That’s why we have mapped digital competency across the supply chain organisation – from individuals at the site level to leadership. This transparency has tangible benefits: personalised learning paths for talents across the organisation, skill-gap analysis that empowers managers to drive development of their teams, and executive visibility so we can make informed decisions on where to invest.
We have also created a dedicated program to develop and engage shopfloor employees in automation manufacturing, focusing on three critical domains: programing and automation, digital and technological proficiency, and data analysis interpretation. This ensures these employees can develop the skills and expertise they need for today and tomorrow.
Fostering a Growth Culture: A Collaboration of Learning and Adaptability
The volatility and uncertainty we have seen over the last few years has revealed the new skills, capabilities, and mindset needed for success. Our new world requires new ways of working, and it’s crucial to create a culture that values continuous learning, creative problem-solving, and innovation.
It’s important for leaders to encourage curiosity and open-mindedness, recognize and reward behaviours that demonstrate learning and innovation, and offer flexible learning opportunities that accommodate individual needs. This way, both organisations and their employees can adapt to new technologies and changes in business operations at their own pace, ensuring a smooth digital transformation.
Our Catalyst Leadership program gives our people managers the skills to be more agile leaders and support their teams in their development.
But there are digital tools that can shape the culture too. Open Talent Market is an AI-driven technology that has helped Schneider Electric match our internal supply and demand of talent in a transparent, borderless, and unbiased way. Employees use it to develop, grow, and shape their futures. Now, they can select a mentor, contribute to a project, or even apply for a new role.
Navigating Towards the Future
As we navigate towards an exciting yet ambiguous digital future, it’s crucial to remember that people make technology work. The key is to create a digitally competent and operationally effective workforce that can navigate the stormy waters of digital transformation.
Building digital expertise and instilling a culture of continuous learning within your supply chain organisation is not easy. However, those willing to invest time, effort and resources will find that they are better prepared to tackle future challenges, seize opportunities, and effectively drive their organisation’s digital transformation journey.
- Collaboration & Optimization
- People & Culture
