Supply Chain Frontiers issue #45
Christine Krathwohl was recently appointed Executive Director, Global Logistics and Containers, General Motors. Her organization is responsible for procurement and operations for all material shipments into assembly and manufacturing locations globally and for the distribution of finished vehicles. The procurement of all sequencing and warehousing operations – as well as the design, quality, and management of all returnable containers worldwide – also falls within her area of responsibility.
We asked Krathwohl about the changing role of logistics and the skills individuals need to excel in the profession today.
Frontiers: What kind of background or industry experience provides a good platform for a career in supply chain management and global logistics?
Krathwohl: The tremendous growth GM has experienced in the flow of vehicles and materials between continents in the last two or three years – and I don’t see it changing in the next 10 years – requires a completely new set of skills and expertise. Many of these changes also apply in the broader logistics industry.
It’s critical to have international business experience, and preferably to have lived outside of one’s home country or continent where possible. There are tremendous benefits to be gained both personally and professionally from being exposed to other cultures.
Also, I tell every young person who wants a career in supply chain or logistics that I reached my current position largely due to the varied experiences I have gained throughout my career. My time in manufacturing has allowed me to understand the requirements and challenges of our internal customers, and has given me a level of credibility and respect within the organization. Also, my experience working on the supply side allows me to understand the challenges that suppliers face, and that helps me to build a higher level of trust with these companies.
If you can get a job rotation on a plant floor, my advice is to take it. It’s the best experience you will have in terms of people dynamics and the operational environment. In the car industry, for example, the revenue stream can be halted by just one part not being available. It’s not like retail where you can generate revenue from other SKUs if one SKU is missing.
People who are looking to get to the next level immediately usually end up shorting their career. Even within the job or function, you have to look outside the box; what special assignments can you take, and what cross-functional teams can you be on to gain more experience?
Frontiers: Is breadth of experience also an important factor in higher education?
Krathwohl: Absolutely. Look for a well-rounded curriculum. Subjects such as accounting, marketing, organizational development, purchasing, and negotiating are critical. You need to understand finance, enterprise decisions, how to set strategy, and how to build a business plan.
Frontiers: How about ongoing education, such as MIT CTL’s executive education programs?
Krathwohl: They are very valuable. I usually take away at least one or two “aha” moments from these programs. The networking is especially valuable. I learn so much from what other companies are doing differently and from sharing real-life stories. The programs also provide an opportunity to explore how we, as an industry, can create more collaboration and benchmarking across companies.
Frontiers: How can the supply chain profession attract more women?
Krathwohl: It helps to have women in positions such as the one I have at GM. Working in a plant and supervising is not a glamorous job; I was the first female supervisor when I worked at a previous job in Ford Service Parts. Being in that role at 23 years of age was not easy. But this is a very rewarding career and one that can lead to other opportunities. If you cut your teeth in auto supply chain management, for example, you are very marketable outside the industry because of the operational challenges I mentioned earlier.
Frontiers: As individuals climb the career ladder in supply chain management, what leadership skills are important?
Krathwohl: I believe that you need to be a stronger people leader than ever before. Today’s leaders should know how to build global teams that strive for the success of the corporation as a whole while balancing regional needs. Being a subject matter expert is useful, but is not as important as being a people leader because you have experts who can provide that kind of specialist knowledge.
Frontiers: Despite its increasing importance, the supply chain management profession still has an image problem. How can the industry address this?
Krathwohl: We need to continue to educate corporations and academia on the impact that the supply chain and logistics function has on businesses and how it interfaces with all parts of the company. There are so many touch points. Yet, logistics and supply chain management is a black box for most people.
Frontiers: Is that a deterrent for people who are looking for a clear career path to the top?
Krathwohl: It can be. Some corporations have done a good job letting logistics and supply chain management sit on their executive committees. Here in GM, purchasing and supply chain report to one function, so there is a Vice President of Purchasing and Supply Chain. Then underneath that person is someone who is responsible for the global supply chain, and I am responsible for global logistics. At GM, logistics is one of the top 250 jobs in the company.
Frontiers: Looking ahead, how will trends such as the globalization of the supply chain function and the growing importance of people skills impact the profession?
Krathwohl: I think they will make supply chain management and logistics more marketable. The amount of money companies are spending on logistics is now substantial as a percentage of revenue. Much of this is driven by emerging markets where the infrastructure is poor and the efficiency of supply chains is a major issue. Hopefully, more people will realize that this is a great profession – no two days are the same, and there are more opportunities to build a career.
Talent management is one of the supply chain challenges that will be discussed at the 2012 Crossroads conference, Supply Chains in Transition: The Global Forces of Change, June 28, 2012, MIT, Cambridge, MA, USA. For more information on the agenda and to register, go to: http://ctl.mit.edu/events/crossroads_2012.