Armor & Mobility

MAR/APR 2017

Military magazines in the United States and Canada, covering Armor and Mobility, focuses on tactical vehicles, C4ISR, Special Operations Forces, latest soldier equipment, shelters, and key DoD programs

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Page 10 of 31

Organizations that succeed in this new and disruptive world will be the ones that can capture the combined power of people, businesses and things by picturing how new value is created. Supply chain strategists who ignore the potential of digital business will find themselves losing relevance. Because the intelligent digital supply chain is emerging, DoD leaders should engage with the private sector as all seek to figure out the best approaches. As concepts mature, innovation is introduced, and ideas became reality, DoD can contribute and help shape the future. According to Gartner's previous research, some of the impacts that digital business will have on supply chain operations that must be addressed in digital business technology roadmaps are: • Planning: demand and supply planning will need to change. Digital will allow for more customized solutions and services, requiring supply chains to be more integrated. What features must be built into the processes that are connected to support digital business? What sustainment and service capabilities need to be factored into planning as the shift to digital business grows? Will demand become more variable? How do you model the impacts? • Sourcing and procurement: Sourcing and vendor management capabilities must evolve if digital service offerings include software or services from third-party providers. Partnering will need to happen more quickly and be more dynamic. The vendors or providers may be completely new or need change. Who is responsible for issues such as software updates and security patches? • Industrial operations: Uptime and optimization of industrial assets will improve as industrial sites leverage existing and new sensors that are attached or embedded in their operations. This will drive advanced analytics, increasing the shift from preventative to predictive maintenance. • Logistics: The need to be adept at coordinating materiel and personnel for fulfillment and service across internal operations and external partners will be crucial. The customer service and support organization's role, responsibilities and relationship with logistics operations will change in tune with supporting internet-connected products delivered to customers. Will new replenishment services force logistics to provide new fulfillment offerings? DEVELOPING TALENT Bimodal operations and an intelligent digital supply chain will call for different talents and skill sets than current practices require. Gartner research reveals that supply chain organizations considered "leaders" were twice as likely to be focused on talent as those who were "below average." Successful organizations ensure the right mix of Masters of Discipline, who ensure functional excellence, and Masters of Orchestration who produce end to end value. DoD has developed a human capital strategy for logisticians to develop and retain such professionals. Research shows that challenging roles and career paths are at the heart of driving employee engagement and retention, and supply chain leaders need a clear plan to make this happen. These concepts apply at DoD. Understanding how to motivate employees in evolving workplaces has been a topic of research for over 100 years; yet, many leaders are still struggling to find the right solutions. In the 1960s, noted behavioral researcher Frederick Herzberg outlined a new way to look at how employees are motivated at work. Instead of viewing motivation as one continuum from dissatisfaction to motivation, he posited there are actually two factors that impact the way an employee engages at work: • Hygiene: These are factors that do not lead to higher job satisfaction, yet their absence will lead to dissatisfaction in the workplace. Examples include salary, fringe benefits and vacations, hierarchical status, work conditions, and job security. The goal of the manager is to use strategies in these areas to eliminate job dissatisfaction. • Motivating: These are factors that, when in place, provide job satisfaction and motivate employees to extend discretionary effort at work. Examples include recognition for achievement, responsibility, decision-making authority, the opportunity to do meaningful work and a sense of importance to the organization. The goal of the manager is to use strategies in these areas to motivate and engage their workforce to increase job satisfaction. This is an important insight because it gives leaders a two- pronged approach for developing recruiting, retention and engagement strategies. Additional research supports the need to focus on these motivating factors. A study of supply chain leaders by Deloitte asked what talent practices respondents planned to use more over the next five years. Companies considered "supply chain leaders" indicated "new career paths" as a top practice (60%) compared with supply chain followers at 49%. Strategies such as formal and informal development programs scored highly with supply chain leaders (60% for both) versus the followers (45% and 48%, respectively). IMPLICATIONS FOR DEFENSE SUPPLY CHAIN LEADERS The DoD operates in an environment unlike any other. The critical importance of mission success to national security has no parallel. Yet understanding capabilities that provide success for others permits an assessment of the potential to translate principles into the DoD environment. DoD supply chain leaders, like other supply chain executives, will find reinforcement of current capabilities, support for innovations being evaluated, and introduction of new ideas to investigate and examine. All will contribute to supporting the war fighter while being good stewards for the taxpayer. Figure 2. Bimodal Capabilities. (Gartner Group) SUPPLY CHAIN LEADERSHIP Armor & Mobility | March/April 2017 | 9

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