Laure Collin, SVP Human Resources, Global Supply Chain at Schneider Electric, explains how manufacturers can strategically approach their digitalisation.
The benefits of Fourth Industrial Revolution technologies for supply chains are well documented and clear for all to see.
They include greater operational efficiency, improved sustainability outcomes and enhanced resilience, to name a few.
However, as decision-makers roll out these digital solutions across their businesses, they are met with a profound question: how can we ensure our people develop the skills required to adjust to this digital supply chain?
Here, Laure Collin, SVP Human Resources, Global Supply Chain at Schneider Electric, highlights four key considerations for supply chain leaders when approaching digitalisation.
Digital supply chains must be human-centric
The manufacturing industry is facing a huge labour shortage. According to the World Economic Forum, more than 10 million manufacturing positions are open today. So, while AI and machine learning have made significant advancements in recent years, people remain the backbone of any successful supply chain. Why this labour gap? One significant cause is the higher demand for tech skills.
As companies go through digital transformation, ensuring people remain at the heart of their supply chain strategy is critical. It’s a simple equation: training current industrial talent for the digital world while also investing in the new generation builds a more vibrant, efficient and future-ready operation. It’s unlikely we will see a sudden surge of digital supply chain talents on the market, so the most obvious solution for organisations to address this gap is to ensure their current talents are upskilling and reskilling for the future.
Between 2021 and 2023, Schneider Electric increased digital talents across our supply chain organisation by 67%, from the shop floor to senior management. Here’s how we did it.
Nurturing digital skills among shop floor employees
No matter how advanced technology becomes, it’s the people at ground level who are its primary users. Employee skills can make or break the success of implemented technology. Any digital skills strategy must be inclusive and include your employees working in factories and distribution centres.
At Schneider Electric, we’re equipping our shop floor employees to become data-driven wizards and automation gurus. One critical step is ensuring they are digitally connected. We have connected approximately 40,000 employees across 175 factories and distribution centres to a digital communication tool, enabling them to receive and send communication in real-time. This breaks down traditional barriers and connects shop floor teams to managers and remote experts. It also ensures the team has greater access to knowledge and problem-solving, sharing best practices and troubleshooting tips across sites. This helps us scale best practices, including digital solutions, across the organisation.
You can’t change what you don’t measure. That’s why we’ve mapped digital competency across the supply chain organisation – from individuals at the site level to leadership. This transparency has tangible benefits: personalised learning paths for talents across the organisation; skill-gap analysis that empowers managers to drive development of their teams; and executive visibility so we can make informed decisions on where to invest.
We have also created a dedicated programme to develop and engage shop floor employees in automation manufacturing, focusing on three critical domains: programming and automation, digital and technological proficiency and data analysis interpretation. This ensures these employees can develop the skills and expertise they need for today and tomorrow.
Fostering a growth culture
The volatility and uncertainty we’ve seen over the last few years has revealed the new skills, capabilities and mindset needed for success. Our new world requires new ways of working and it’s crucial to create a culture that values continuous learning, creative problem-solving and innovation.
It’s important for leaders to encourage curiosity and open-mindedness, recognise and reward behaviors that demonstrate learning and innovation and offer flexible learning opportunities that accommodate individual needs. This way, both organisations and their employees can adapt to new technologies and changes in business operations at their own pace, ensuring a smooth digital transformation. Our Catalyst Leadership programme gives our people managers the skills to be more agile leaders and support their teams in their development.
But there are digital tools that can shape the culture too. Open Talent Market is an AI-driven technology that has helped Schneider Electric match our internal supply and demand of talent in a transparent, borderless and unbiased way. Employees use it to develop, grow and shape their futures, as they can select a mentor, contribute to a project or even apply for a new role.
Navigating towards the future
As we navigate towards an exciting yet ambiguous digital future, it’s crucial to remember that people make technology work. The key is to create a digitally-competent and operationally-effective workforce that can manoeuvre through the stormy waters of digital transformation.
Building digital expertise and instilling a culture of continuous learning within your supply chain organisation is not easy. However, those willing to invest time, effort and resources will find they are better prepared to tackle future challenges, seize opportunities and effectively drive their organisations’ digital transformation journey.
