Supply Chain Frontiers issue #52
The unemployment rate in Europe remains stubbornly high at around 12% and in Spain is over 25%, yet the current jobless rate for graduates of the MIT-Zaragoza Master in Logistics and Supply Chain Management program in Zaragoza, Spain, is zero. The program's exceptional performance is testament to the continued demand for skilled supply chain professionals.
The Zaragoza Logistics Center (ZLC) has two supply chain master's degree programs, taught in English (ZLOG) and Spanish (MdL), that each attracts approximately 25 students annually. Seventy-six percent of students secure at least one job offer before graduation. Even with the challenging economic circumstances, over the last two years every graduate has landed a job in their field of interest.
The graduates from the Spanish program tend to stay in Spain, while students from the English program are widely dispersed with about 60% gaining employment in Europe, the Middle East and Africa, 25% in North America and Central America, and the rest in Asia. More than 90% of the students in the English program change their country of residence from before joining the program and most are with Fortune 500 companies. The positions held include Regional Planner, Global Logistics Improvement Leader, Manager for Merchandizing Planning, Supply Chain Strategist, and Business Development Manager. Interestingly, of the program's 400-plus graduates over the past 10 years one-third are women, an unusually high ratio in the supply chain domain.
There are a number of reasons why these graduates have bucked the broader employment trend in Europe, believes ZLC Director Dr. David Gonsalvez.
"To some extent it can be attributed to bottom-up opportunities. Over the last 10 years, many of our graduates have risen to senior positions in their organizations, and we now have a very strong alumni network worldwide," he says.
An example of the network's strength is a recent workshop on risk management in Basel, Switzerland, that was organized by 15 graduates of ZLC's master degree program. This cluster of graduates works in the pharmaceutical industry (for more information see the news story ZLC Alumni Organize Industry Workshop).
In addition, the supply chain management profession has gained in stature generally over the last decade or so. "Crises such as the tsunami in Japan highlight the key role that supply chain plays in the global economy. Further, companies realize that well managed supply chains can help them compete in unpredictable and continuously evolving markets," says Gonsalvez.
Another profile booster is the growing interest in sustainability, especially in Europe. Again, supply chain has a central role to play. For example, the European Commission has set ambitious targets for developing carbon-efficient freight transportation systems, and is engaging with the logistics community – including leading research centers such as ZLC – to meet these targets.
Europe's economic woes have also helped to raise awareness levels. Companies turn to supply chain professionals to help them cut costs and streamline processes in key areas such as inventory management (for more on this see the article Counting the Cost of Liquidity in the Euro Zone, Frontiers, Winter 2013).
How do these trends translate into the demand for supply chain skills?
"Companies are very interested in graduates with a combination of strong analytical skills, the ability to frame analyses in a general business context, and the ability to communicate well," says Gonsalvez.
The good news is that the demand for these professionals in Europe is expected to increase. Although the economic picture remains worrisome, it has stabilized, points out Gonsalvez, and emerging countries in regions such as Africa will both need and provide goods and services. "Spain is well positioned to compete for the logistics underlying this business," he says.
Another important driver is the shift towards e-commerce in retailing. "People have been surprised at the speed at which e-commerce has taken off. The challenge now is managing the transition where retailers must support both traditional and online models," says Gonsalvez.
The growth of omni-channel retailing, where consumers make purchases via the sales channel of their choice, is a response to this challenge. In terms of the implications for supply chain jobs, "companies seem to want to hire middle managers who can help them make the transition and then consolidate the new model," he says.
ZLC will continue to fine-tune its educational programs in response to these demands. The center's location in Aragón also helps. Part of the reason for the creation of ZLC is that the government of Aragón chose logistics as a strategic growth industry. The region has established a compelling case for the power of logistics to generate jobs. Moreover, ZLC is headquartered in PLAZA, the largest distribution hub in southern Europe.
For more information on ZLC and the center's educational programs, contact the center's Marketing Manager Cristina Tabuenca at ctabuenca@zlc.edu.es.