By David Hargraves
Know it or not, you are witness to a dramatic and permanent change in healthcare supply chain management. Change is all around us.
Our roles are expanding into non-traditional areas, increasing in size and scope, increasing in complexity, increasing visibility and increasing in strategic importance as evidenced by the emergence of the healthcare chief supply chain officer position. What actions are you taking today, to prepare your supply chain organization for the increased demands of tomorrow?
Attracting, developing and retaining top supply chain talent has been proven to have a significant positive effect on a company’s bottom line. Supply chain personnel must be experts in logistics, legal terms, negotiations, inventory control, risk management and corporate governance. Our roles require a mix of capabilities that are difficult to find, but we must fill these skill gaps in order to remain competitive.
In a time when large systems are becoming larger and smaller systems face an increased struggle for financial independence, investing in supply chain talent might sound like a far off dream. But there are actions that you can and should take right now to increase the bench strength of your supply chain team improve your organization’s bottom line. Right now, with little effort and no cost, you could identify the skills and competencies you need, conduct a gap analysis of your current organization and develop a plan to fill in the skill gaps. Below are some tips to help you execute your plan and ensure you’re attracting and growing the best supply chain talent.
Hire fewer people, but pay them more. The 2010 Salary Survey by ISM shows that the average entry level supply chain employee earns $50,506 per year. How do your starting salaries compare? Use procurement automation and Lean principles to remove inefficiencies in your organization and then use the labor savings to ensure your pay is competitive in your market.
Provide support for education, professional certification and training. Financial support may already exist in your organization but your support is what your people need. Be visible. Let them know you value education and certification.
Make your organization a known top destination for new SCM graduates. Undoubtedly your institution spends a lot of money each year on “branding.” What efforts have you done to do the same for your supply chain organization? Develop relationships with trade associations and universities offering supply chain curriculums in your area. If you don’t have a local chapter of a supply chain trade group, consider starting one.
Recruit non-traditional supply chain talent. The fundamental principles of supply chain are the same, irrespective of any particular industry. If you are restricting your search for supply chain talent to only those candidates with healthcare purchasing experience, then you are missing a fantastic opportunity to diversify your organization. Consider hiring a person from another industry, a veteran or a salesperson from one of your suppliers.
A recent research report by Gartner found that over 90 percent of the supply chain executives interviewed believe that talent acquisition and development is at least “an important challenge”.This challenge will only increase in the coming years so now is the time to take action and prepare your organization for the significant changes that are occurring in our industry.
David A. Hargraves, C.P.M., is the senior director, clinical supply chain, at the University of Pittsburgh Medical Center, an $8 billion international healthcare delivery network where he is responsible for all clinical contracting, strategic materials distribution, inventory control, value analysis and supplier risk assessment.
