The world is, in many ways, becoming a more dangerous place. Conflict in Eastern Europe and the Middle East is impacting global supply routes and the availability of resources, while political instability causes rapidly shifting laws and escalating uncertainties.
At least 59% of supply chain leaders state that business growth is a top priority, but acknowledge that disruptive global events and geopolitical instability pose significant risks. Investing in the right people could mitigate the impact of these risks and help ensure supply chain resilience into the future.
Impact of Geopolitical Risks on Supply Chain Talent Demand
Supply chain talent demand is transforming, with companies requiring leaders who can steer them through tumultuous times. Risk management experience and strategic planning skills are a must, in order to create teams that can both predict risks and plan mitigation scenarios.
Logistics talent acquisition now focuses on candidates with expertise in regulatory compliance and international trade laws. Global supply chain strategies must center cultural intelligence to foster greater levels of collaboration.
Unfortunately, the geopolitical risk workforce impact is that many employees are moving away from supply chain-related work. An increased level of risk and the frustration of bottlenecks and delays are prompting some workers to look for opportunities elsewhere. The result? Around 64% of businesses have been impacted by supply chain talent shortages, a problem that appears set to continue for some time. Addressing these is a top priority for firms looking to rebuild supply chain resilience and reduce the potential impact of geopolitical risks.
Essential Supply Chain Leadership Skills Amid Geopolitical Uncertainty
Risk mitigation in supply chains requires more than an understanding of geopolitical events. Effective leaders should be able to demonstrate an aptitude for supply chain crisis management. Expediting a shipment of resources to a manufacturer to prevent delays in production, for example, could accelerate movement within the automotive supply chain. An experienced manager will know how to address situations like this, including the right forms to fill in and who to speak to.
Effective supply chain leaders should also understand international trade compliance laws and regulations. Adhering to these laws helps prevent port delays and other bottlenecks that can stymie supply chain progress.
Supply chain leaders should also show:
- Excellent decision-making skills under pressure
- The ability to drive innovation and change
- Collaborative skills to create cross-functional and cross-cultural teams
- Adaptability to rapidly changing situations
Investing in leaders with these skills, even if they’re originally from other sectors, could help drive supply chain resilience.
Strategies for Building a Resilient Supply Chain Workforce
Effective supply chain workforce planning should combine savvy recruitment practices with continuous on-the-job learning and training programs. Succession planning and leadership pipelines can also ensure that existing talent isn’t overlooked.
Supply chain leadership development programs help nurture the next generation of expert managers who can guide teams through various crises. Current prospective leaders have the advantage of a “baptism of fire” approach — if they can lead effectively now, during multiple crises, they can certainly lead with aptitude once geopolitical uncertainties begin to resolve.
Geopolitical risk management also requires experts in data analytics and emerging technologies like AI and advanced automation. Existing leaders should look to hire those with experience in predictive analytics, risk management technologies, and even code development skills. Logistics companies that can help drive innovation through their people could positively impact the entire supply chain worldwide.
Future-Proofing Your Supply Chain
Supply chain innovation relies on talented people who understand the evolving state of geopolitical risks and turmoil. Consider investing in decision-makers who can develop strategies and leverage the right technologies to build resilient and adaptable supply chain teams.
Prioritize skills in cultural intelligence, crisis management, and international trade law and compliance. With leaders like this in place, you have a better chance of building entire teams of focused, motivated employees who can handle the most stressful of geopolitical situations.
Discover more about effective supply chain recruitment and its impact on your business. Connect with MRINetwork, an experienced talent solutions specialist working across multiple supply chain-related industries.
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