How Can Supply Chain Management Training Address the Supply Chain Competency Gap?

Digitalization has driven supply chain management processes to adopt digital technology. In fact, a 2022 study by Delloite found that although 76% of companies have invested in AI-based digital solutions, only 25% of supply chain professionals feel adequately trained in digital technology.

The Delloite study is supported by McKinsey's annual survey of supply chain leaders conducted in 2020. The survey found that 90% of respondents said they lacked sufficient talent to achieve their company's digitalization goals.

A surprising finding is that most senior management lacks sufficient supply chain knowledge, making them unaware of the challenges faced in the supply chain management process.

What happens if competency gaps persist, or even a shortage of talent in supply chain management? Naturally, companies will be slower to release products until they finally reach consumers.

If companies are increasingly slow to innovate and release products, they need to be prepared to be outpaced by competitors.

So, how do you address this supply chain competency gap? You'll find the answer here.

Competency Gaps Often Encountered in the Supply Chain Division

A supply chain professional needs to possess both technical and non-technical competencies. Technical competencies include data analysis, planning and forecasting, supply chain management, and much more.

Non-technical competencies are also needed because they will be connected with various vendors such as raw material suppliers, distributors, and others, making communication and negotiation skills essential.

With digitalization, the use of numerous digital tools requires time for professionals to adapt. The following are some competency gaps encountered when a company wants to adopt digitalization in its supply chain processes.

Lack of Data Analytics Skills and Digital Technology Mastery

Many supply chain staff still rely on manual spreadsheets and are unfamiliar with using analytical tools such as SAP, Power BI, Tableau, or other supply chain software. This leads to decision-making that tends to be intuitive and slow, rather than based on accurate and real-time data.

Lack of End-to-End Supply Chain Understanding

Some team members focus solely on one function, such as procurement or logistics, without understanding how these processes are connected throughout the supply chain. This lack of a holistic perspective can hinder efficiency and reduce cross-functional collaboration.

Limitations in Forecasting and Demand Planning

Demand planning activities are often not based on scientific methods or sufficient historical data. As a result, companies are vulnerable to overstocking or understocking, which in turn impacts cash flow, storage costs, and customer satisfaction.

Weak Communication and Stakeholder Management Skills

Communication challenges arise especially when working across divisions or interacting with global suppliers and partners. The inability to convey needs or align expectations often leads to miscommunication, delivery delays, or internal conflict.

Lack of Adaptability to Change (Change Management)

In the rapidly changing world of the supply chain, particularly due to global factors such as pandemics or geopolitics, teams that are not agile will struggle to adapt. Many are not trained to respond to change quickly and strategically.

Lack of Technology Integration and Automation Skills

Digital transformation requires mastery of systems such as WMS (Warehouse Management System), TMS (Transportation Management System), RFID, and IoT. However, many human resources are not yet proficient in these technologies, resulting in companies missing out on opportunities for operational efficiency.

Lack of Risk Management and Scenario Planning Competencies

Risks such as supply disruptions, fluctuating raw material prices, or natural disasters need to be properly anticipated. Unfortunately, not all supply chain teams have the skills to develop comprehensive scenario plans and be ready to execute them in the event of a crisis.

Overcoming the Competency Gap for Supply Chain Professionals with Supply Chain Management Training

The best way to address the competency gap is through upskilling and reskilling programs.

Upskilling programs help employees improve or deepen their existing competencies or skills to become more relevant and productive in their current jobs.

An example of upskilling is when a supply chain employee who is already familiar with Excel learns to use Power BI to create more interactive and automated reports.

A reskilling program, on the other hand, involves learning new skills that differ from those previously acquired, usually to transition roles or responsibilities.

For example, a warehouse employee who previously only managed physical inventory is trained to become a digital logistics administrator using an ERP system.

The next question is how can upskilling and reskilling be implemented to address this competency gap? Companies can consider providing supply chain management training by considering the following:

Conduct Benchmarking According to the Skills Framework

Use standards from professional institutions such as the CBSC (Council of Supply Chain Management Professionals) or CPSM (Certified Professional in Supply Management) to map required competencies. This will serve as a reference in developing training programs that align with global standards.

Gap Analysis Based on Valid Data

Conduct an internal survey to measure employee proficiency levels in critical skills such as data analysis, use of digital tools, and understanding the end-to-end supply chain. The results of this survey will serve as the basis for determining training priorities.

Personalized and Customizable Training Programs

Develop training programs based on the gap analysis results, for example, whether to provide personalized programs in the form of short courses, professional certifications, or in-house workshops.

Collaboration with External Parties

Strengthening supply chain competencies can be done through external collaborations with vocational schools or training platforms such as prasmul-eli, Coursera, ASCM, and ISCEA.

This approach provides broader and more up-to-date access to learning. Furthermore, mentoring between senior and junior employees, as well as job rotation, helps broaden employees' exposure and understanding of various aspects of the supply chain process.

Monitoring & Measurement

It is crucial to measure the effectiveness of training using concrete metrics such as reduced lead times, increased forecasting accuracy, and improved visibility down to second or third-tier suppliers. This measurement data serves as the basis for evaluating and refining the training program, which should be conducted periodically, ideally every 6 to 12 months.

Skill Development & T-Shaped Team Building

Developing a competent team requires a balance between hard and soft skills. Teams must be technically strong in areas such as data analytics, procurement, and contract management. However, soft skills such as risk management, cross-functional collaboration, and effective communication are equally important to support overall supply chain success.

Supply Chain Management Training Recommendations to Achieve Company Digitalization Goals

With the rise of e-commerce and social commerce, companies need to focus on improving supply chain management processes so that products reach consumers more quickly.

If a company still has a significant competency gap to achieve its digitalization goals, choosing the right supply chain management training will help achieve those goals.

For example, Prasmul-Eli's supply chain management training covers the latest supply chain management practices, the interconnected role of technology in creating faster, more efficient, and better supply chains, and SCM-related business ecosystem strategies such as omnichannel (offline and online collaboration), cooperation (collaboration with competitors), disintermediation (manufacturers and retailers), and resource sharing (using other parties' assets).

Let's work together to improve digital talent in the supply chain management process.