E-commerce demands agile supply chain

Supply chain and logistics professionals need to prepare for the future as technology increasingly disrupts retailing.

Increasing disruption throughout the supply chain is creating strong growth and employment opportunities for the right candidates. This growth is likely to continue, according to a recent Deloitte Access Economics report.

The Future of Work: Occupational and Education Trends in Supply Chain and Logistics in Australia found the sector is expected to grow at an above-average rate of 2.1 per cent a year to 2022. This is strong, compared with 1.5 per cent a year for the entire Australian labour force.

We will also see the number of supply chain jobs increase from 145,000 in 2016-17 to 161,000 in 2021-22. The strongest growth will be for the role of supply distribution manager, at 3.1 per cent, but it is encouraging to see such strong growth across the board.

The report paints a positive picture for those working in the sector: in 2016-17, professionals with relevant postgraduate qualifications had an average annual salary of $140,949 — 66 per cent more than those without post-school qualifications. In five years, postgraduate-qualified professionals should expect to earn an average of $164,360. That’s an impressive rise of 14.3 per cent.

So, how can those who work as supply chain and logistics professionals best prepare for the future?

Technological innovation is disrupting the sector and driving significant growth. Data analytics is an important disruptive technology, with benefits including improved customer service, faster reactions to supply chain issues and greater efficiency.

The Del­oitte report has identified opportunities for applying data analytics to improve operational processes in demand forecasting, inventory management and supply chain visualisation.

The use of crowdsourcing apps, drones and driverless cars will play a key role in transactions. For businesses, it means a fundamental change to the way they think and operate, locally and on a global scale. Businesses that adopt an omni-channel model will have the competitive edge.

The growing importance of digital technology means there will be a shift away from linear supply chains towards more complex and dynamic “value web” supply chains.

These webs of connected suppliers, distributors and consumers facilitate collaboration and knowledge exchange, driving greater innovation and efficiencies throughout the value chain.

Consumers are shifting away from traditional bricks-and-mortar shops to online purchases and e-commerce sites. This has — and will continue to have — an impact on delivery and transportation services across the supply chain.

In an effort to compete with new e-commerce players, retailers that traditionally have sold goods in-store are shifting much of their focus into transforming and improving the online customer experience.

Amazon, for example, is disrupting the Australian retail landscape, with online retail spending accounting for only 7 per cent of current total retail expenditure, compared with 12 per cent and 17 per cent in the US and Britain, respectively, where Amazon is a veteran retailer.

As the sector continues to evolve, there’s no doubt there will be greater demand for qualified professionals with superior skills. Further study is a great way to develop these advanced skills in areas such as business strategy, project management and analytical modelling, to ensure you remain competitive in the employment market.

Not only will it provide logistics and supply chain professionals with a better understanding of how certain skills and knowledge can be applied in their job, further study will make professionals lifelong learners. This is a necessity to ensure people can stay abreast of constant change, preparing them for senior managerial roles.

Booi Kam is the program director of supply chain and logistics management at RMIT University in Melbourne.