So, exactly how much economic impact does the supply chain have in the United States? Well, the answer is—we don’t really know all that precisely. Every year, the Council of Supply Chain Management Professionals (CSCMP) publishes its Annual State of Logistics Report. And the most recent edition says the cost of U.S. business logistics is 8.3 percent of U.S. GDP, or about $1.45 trillion. While that’s the number typically used, there isn’t much more available insight into answering the question. Fortunately, a major step toward developing specific economic impact metrics for the supply chain has been made by Dana Magliola, Lindsay Schilleman and John Elliott.
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Having difficulty finding the necessary talent for your supply chain team? It’s time for a new approach. "The supply chain has evolved over the last decade or so into a complex orientation that combines a number of different traditional functions together and asks them to work together to not only operate the business for low cost but also to provide good service and to drive revenue," said Shay Scott, managing director of the Global Supply Chain Institute at The University of Tennessee. Supply chain employees today need significantly different skills than they did in the past, including the ability to see the big picture and to manage the increased risks and complexity in the global supply chain.
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Although more than 11 million people work in the supply chain—representing 8.6 percent of the nation’s workforce— a shortage of skilled workers persists. An estimated 600,000 manufacturing positions in the United States are unfilled for a lack of qualified workers. Further, the U.S. Roadmap for Material Handling & Logistics predicts that by 2018 there will be 1.4 million new jobs in the field. As companies have struggled to find talent among their traditional workforce pool, they’ve begun to look elsewhere.
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Helping students understand the depth and variety of supply chain careers available can be as challenging as helping the industry’s companies understand the worth in reaching out. Collaboration between companies, universities, two-year colleges, high schools and government entities is key, for both the industry and the communities it serves.
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Have you ever asked yourself how you started your supply chain career? You may be surprised by the answer. In my particular case, I was asked to "run the warehouse," mainly because no one else would do it. Imagine that—one of the key links in any supply chain and no one wanted to manage the warehouse. That was a long time ago, and at that moment, I recognized the need to look at supply chain careers in a different way.
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Although well understood within the industry, the general public has—by and large—failed to recognize the significance of supply chain jobs to business and to the overall economy. The story needs to be told that supply chains are led by a diverse group of professionals who utilize innovation, creativity and smart thinking to keep the economy moving.
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