Resolving Ontario’s Supply Chain Management Skills’ Crisis Resolving Ontario’s Supply Chain Management Skills’ Crisis A Collaborate Approach Focus Group Session May 3, 2012

Objective To outline a value-added supply chain management education model for Conestoga College that all primary stakeholders can support.

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Current State Demographic change Since 2002–03, student enrolment [elementary and secondary] has declined from 1,997,000 to 1,877,000, a decrease of 6.0 per cent, or 0.7 per cent per year on average. Commission On The Reform Of Ontario’s Public Services 2012

Current State

Current State Demographic change

Current State Demographic change Skills shortage in SCM sector

Current State “Resolving Canada’s skills crisis.” Despite current unemployment levels, Canada has a growing labour shortage. More people with the right skills are needed for Canada to compete and prosper in a global, knowledge-based economy. Developing domestic skills and improving access to foreign workers are vital to the continued success of Canadian businesses and our economy.”   Top 10 Barriers to Competitiveness – The Canadian Chamber of Commerce, Feb. 8, 2012

Current State In this increasingly global marketplace, post-secondary education (PSE) remains a vital asset for Ontario, as over two-thirds of all new jobs in the province are expected to require PSE. Commission On The Reform Of Ontario’s Public Services 2012

767,200 workers in Canada’s supply chain sector. 46%, or approximately 353,000 of supply chain sector employees in Canada are located in Ontario. Due to adverse demographics and competition from other sectors, the sector is experiencing HR pressures. Relatively high vacancy rate with approximately 26,852 positions currently unfilled (March 2012). High turnover rate, which could be higher if one-third of employees who anticipate leaving their organization actually leave in the next 5 years. Increasing proportion of the workforce entering retirement age. The sector will need to recruit 65,979 individuals on an annual basis to accommodate demand growth and the need to replace individuals who leave the sector. That translates into 30,350 supply chain sector hires each year in Ontario! Canadian Supply Chain Sector Council 2012 Human Resource Update

Current State Demographic change Skills shortage in SCM sector “Push” approach to post secondary education 3)

Current State According to the Ontario College of Teachers, the number of graduates from Ontario based teacher colleges who became certified teachers grew by over 3,000 per year between 1998–99 and 2009–10, a total increase of 49 per cent (3.7 per cent per year average annual growth). The rate of teacher retirement also decreased over this period; the OCT noted that the number of new teachers exceeded the number of retirees by 1,800 per year in the early part of the decade, but this gap has now widened to 7,600 a year. Commission On The Reform Of Ontario’s Public Services 2012

Current State Demographic change Skills shortage in SCM sector “Push” approach to post secondary education Lack of awareness of SCM as a viable career choice

Current State Low awareness starts in high schools (career path not promoted by guidance counselors or parents), and continues into the post-secondary education system (educators talk about low awareness and interest in supply chain related courses). Canadian Supply Chain Sector Council 2012 Human Resource Update

Current State Employers cite recruitment issues associated with this kind of limited awareness and misconceptions about the type of work and career opportunities available to those working in the supply chain. The few potential recruits who are aware of the supply chain typically think of it as offering only ‘blue collar’ jobs. As a result, employers describe how people don’t choose to work in the supply chain; they simply ‘fall into it’. Canadian Supply Chain Sector Council 2012 Human Resource Update

Current State It should be noted that even if every high school student could be convinced to pursue a career in the supply chain, there would not be enough workers recruited to meet the sector’s need for workers within every occupational category. Canadian Supply Chain Sector Council 2012 Human Resource Update

Current State One of the most significant recruitment issues employers experience relates to finding employees with the skills they require. Roughly four employers in ten (38%) identified difficulty finding workers with the correct skills/training as a “major” recruitment issue. Canadian Supply Chain Sector Council 2012 Human Resource Update

Current State “Include supply chain curriculum in high school – make parents aware that there is a career path” Canadian Supply Chain Sector Council 2012 Human Resource Update

Future State An employer focused, value-added approach to SCM education at Conestoga College The “German” Model

Future State An employer focused, value-added approach to SCM education at Conestoga College The “German” Model The Conestoga College Proposed Model

Value-added SCM education model Hypothesis: PSE with a job ‘guarantee’ will be highly attractive to some prospective students The value-added SCM education model as proposed will be attractive and receive the support of some employers.

Value-added SCM education model Think of a SC&OM ‘apprenticeship’ program 3 Yr. Co-op (paid) education, 3 x 4 mos. Work terms Student must successfully complete SC&OM Yr. 1 Employers recruit, select and ‘hire’ student ‘employee’ & pay tuition Yr. 2 & 3 Employer participates in curriculum development & guest lectures Student commits to employer for 1-2 yrs. upon graduation

Implementation Next steps Break out groups – 1 ¼ hours. Re-group, discuss, outline an acceptable model

Thank you! Brian Watson Tracey Lopers Dr. Stephen Hummel bwatson@conestogac.on.ca Tracey Lopers tlopers@conestogac.on.ca Dr. Stephen Hummel shummel@conestogac.on.ca