Does training quality really matter?

Staring down the barrel

Implementation of substantially increased compliance criteria has exposed many in Supply Chain Management organisations to the risk of ruinous B-BBEE Scorecard downgrades. Training is however not necessarily the silver bullet solution. 

What’s the difference?

Since Skills Development is a substantial pillar of the B-BBEE Scorecard (yielding a potential 25 points) it could be argued that each organisation should simply be purchasing as much of those training products which yield the highest Scorecard points as possible.

Could the enrolment of targeted employees on this type of training be an unproductive waste of money?

Consider -

Recent research carried out on a South African 3^rd Party Logistics Provider showed that there is no correlation between what supervisors believe to be the competence levels of their team members, what those same team members perceive of their own competence levels and what those competence levels actually are in terms of a battery of objective assessments. There is no reason to suppose that this is any different for any other company in this industry - we don’t know what we don’t know as far as competency levels in our companies are concerned.

Many training products on offer address the needs of industry as it currently exists. A striking feature of Supply Chain Management is the staggering rate and magnitude of change in this field. This “new normal” challenges the competence requirements of organisations on almost a daily basis.

A common approach to training on the part of organisations and providers is to throw learners over the classroom and/or eLearning wall into the workflow in the hope that what they learnt will magically transfer to successful job performance. It doesn’t.

So, whilst we and the Government want to believe that meeting B-BBEE Scorecard Skills Development targets will transform our company, our industry and the country, this will not happen.

The Business Case

Whilst there is no doubt that B-BBEE Scorecard compliance is a ticket to the game as far as doing business in South Africa is concerned, such compliance needs to be structured in such a way as to meet the needs of the business.

So what are business needs?

A recurring theme in Barloworld Logistics’ supplychainforesight over a number of years has been that a lack of relevant skills has been a major constraint to business survival and expansion. There is thus strong correlation between the needs of business and B-BBEE Scorecard targets.

To answer the business case however, a more refined approach is suggested and these are the questions which need to be answered -

Do we know our current competency status? Is each job in the company defined in accordance with a competency profile? Do we have an objective tool to measure each employee against the competency profile of their job and thus identify the competency gaps which must be addressed to meet the organisation’s current competency needs?

Our company strategy - have we unpacked the competency requirements? In other words, do we know what competencies we are going to need in order to achieve our future goals?

If we know this, are we able to define what each area of competency actually means to us in terms of the knowledge, skills and attitude which will be needed to meet these requirements?

In order to begin this journey we need to develop an “exit strategy” for each current job -  a clear picture of the industry trends and technological developments which will transform that particular job and how each individual needs to be equipped to meet those changes.

This strategy will be achieved when everyone in the organisation is performing effectively in their jobs at every changing moment of need. That’s organisational competency.  It should be the driving reason why we do all we do what we do. By achieving this, B-BBEE Scorecard Skills Development compliance becomes an intended consequence, not a strategic objective.

Points to ponder

• Are we training for competitiveness or for B-BBEE compliance?
• Is our company’s skills development policy aligned to our long term strategy?
• Have we defined each job in terms of a competency profile?
• Do we have the tools to objectively measure the gap between the competency requirements of each job and the actual competency of each job incumbent?
• Do we know how the structure and responsibilities of each job must change in order to meet future customer needs?

Defusing the Youth Unemployment Time Bomb

How about creating our own supply chains?

The frightening numbers

We are sitting on a youth unemployment time bomb With a world population of 7.36 bn, over 24% (1.76 bn) is aged between 15 and 29. Most live in developing countries and are unemployable due to lack of skills. In Africa these numbers represent an opportunity, not a threat.

Youth unemployment- threat or opportunity?

The overlooked obvious revealed

Particularly where South Africa is concerned, the logistics industry is well placed to light a fire of radical, constructive change in very much the same way as Clem Sunter’s “High Road – Low Road” addresses to business were able to in the ‘80s.

We recognise that a primary cause of youth unemployment is a lack of skills.

We also acknowledge that South Africa is not about to become a world leader in information technology (or for that many any industry which requires high levels of technological input) anytime soon. Our focus should rather be on developing or reviving primary industries where there is potential which for various reasons is not being fully realised.

3^rd and 4^th party logistics providers add value to the businesses of buyers and sellers of goods by ensuring that these goods are moved from supplier to buyer at the right place, right time and at a viable cost. As such this is a derivative industry which traditionally relies on the existence of buyers and sellers in local and international markets in order to provide their services. In other words 3^rd and 4^th party logistics providers rely on the presence of established supply chains before they can offer their services.

This is where out of the box thinking is indicated. Any visit to a downtown supermarket will show how much fruit and vegetables are imported either from elsewhere in Africa or further afield, but not South Africa. Not 15 years ago this country was a net exporter of these products.

By contrast, the Kenyan cut flower industry started growing in the 1970’s. The country’s horticultural sector currently ranks as one of the economy's fastest growing industries, the third largest foreign exchange earner after tourism and tea, a trend that saw the industry rise to approximately 40% of export earnings over the past ten years with export volumes reaching 220,000 tonnes in 2014. Imagine what that has done for the Kenyan logistics industry.

An important factor in the success of any project involving agriculture is the realisation that, relatively speaking, farming is the easy part: what is important is total control of the supply chain from the time the crop is harvested until it is sold to the consumer.

This is where the opportunity presents itself: due to various factors there is a surplus of arable land in South Africa where those who own that land are unable, through a lack of resources and business expertise, to produce crops which are marketable. By partnering with such landowners the logistics provider is able to use his network of local and overseas contacts to establish markets for products which could be produced by the farm owners in question and then establish viable businesses along that supply chain in order to serve the markets which have been established.

In developing such projects a key factor in ensuring their sustainability is training: the development not only of the means of production (the farm and the downstream processing facilities) but also the competence to manage those supply chains.

From concept to cash: how much of the supply chain does the 3- 4PL own?

It has been said that there is money to be made in unsettled times. By developing their own supply chains, 3^rd and 4^th party logistics providers create their own opportunities while providing real solutions to the youth unemployment time bomb.

The question is- how many 3 and 4PLs are up to this challenge?

Has this sparked some creative ideas? Please share

What other economically sustainable solutions come to your mind?

Please join the discussions on www.charlesrdey.blogspot.com.

Key to Business Sustainability – Beating the Commoditisation Trap

Transforming your ticket to the game into business sustainability

These days the ability to provide a 3^rd party logistics service (freight management, freight forwarding, contract logistics etc.) is simply a ticket to the game: it may open doors, but it puts the business in the commodity space, where the lowest price wins.

Leveraging the whole picture for sustainability

If the people in your organisation have the tools to speak the language of Supply Chain Management and to offer solutions across the whole supply chains of your customers then you are adding huge value: monetising that value is what will sustain your business.

To attain such an objective implies radical changes at a strategic level: sustainable 3^rd party logistics providers have the ability to collaborate with others in building end to end solutions and the ability to integrate systems so that the implementation of such solutions is seamless and transparent down to the last nut and bolt in every transaction.

It is the people within your organisation who must be empowered to make all of this happen and in this context it is those responsible for training who are the critical change agents in such a transformation.

From the training manager’s point of view, for such a transformation to be successful, it needs to take place at all levels. The whole of your company needs to have an awareness of supply chain management terminology and its role in your customers’ respective supply chains, people at operation level need to have certain foundational competencies in the different aspects of supply chain collaboration and integration, those at supervisory and operations management level need to be proficient in these areas whilst those at, or aspiring to be, senior managers need to be experts.

To bring your company to these levels is not cheap and the secret to cost effective training interventions lies in establishing firstly the specific competencies required and then what is already available within your organisation.

Just as the 3^rd party logistics provider needs to use consultative selling techniques to find out exactly what the customer wants and to tailor solutions to meet those needs, so you need a training provider to work with you in mapping your organisation’s competency needs and how these should be met. Such solutions must be structured to meet individual needs down to study unit level and to make use of the best blend of face to face and elearning methodologies. For honing the sword of your company’s ability to stand out in the crowd, at least some of these solutions will need to be developed and delivered in house.  

For successful training programme development and maximum delivery impact it is essential that those responsible for training act as the bridge between your organisation’s departments its training providers.

For the person who will act as this connection, these are some tactics for building the bridge to your business units:

Obtain copies of annual reports, strategy documents, team meeting minutes or notes, and any other documents that can give you a sense of what is important to the business.

Participate in team and/ or strategic meetings and invite line managers or supervisors to join you for meals;

Show an interest in the business and their challenges by asking questions which will help you understand their language and speak it.

Above all, ensure that the impact of your training programmes is evaluated, both immediately and some time after delivery and that the data so obtained is used to continually improve your and your training provider’s programmes.

The key to building bridges is to first establish each individual’s needs in relation to the organisation’s strategy. Training interventions need to be prioritised in terms of the needs of the business, not your training department.

How does your company rate as a provider of solutions as opposed to a deliverer of services?

Does your whole company speak the language of supply chain management or is there still much work to be done?

Is the lack of skills a constraint to your company’s growth? If so, how can you address this?

Would you classify your company as a mover of cargo or a manager of inventory whilst at rest or in motion? Are you comfortable with this?

Your input will be much valued. Please join the discussion