How diversity of thought turns challenges into competitive gains

In an era defined by global supply chain disruptions and rapid technological shifts, diversity of thought and talent emerges as a critical, though often undervalued, driver of resilience and innovation. The automotive logistics sector, inherently diverse in its global and interconnected nature, holds potential for advancing inclusivity and equity. Harry Kwakye Davies, senior global supply manager and speaker at the Automotive Logistics & Supply Chain Digital Strategies 2024 conference, shares how fostering inclusivity amplifies operational success and transforms challenges into opportunities.

A career forged in diversity, Davies’s experience, spanning Ghana, Senegal and Europe, reflects the transformative power of multicultural collaboration. From managing logistics for Ghana’s oil and gas sector to pivotal roles at General Electric, A.P. Møller-Maersk and Uber, his professional journey highlights the critical role of cross-cultural insights in building resilient and adaptable supply chain strategies.

“These diverse experiences have profoundly shaped my leadership style,” Davies notes. “Empathy and creating an enabling environment are critical to driving team success.” As a Black immigrant navigating multinational corporations, Davies’s story exemplifies the importance of inclusive spaces where diverse talent thrives.

Unlocking competitive advantages through diverse thought

Diverse teams outperform, with their success intrinsically linked to driving financial growth and fostering innovation. A 2024 study by consultancy firm Korn Ferry and the Global Black Economic Forum highlights how inclusivity enables organisations to execute ideas effectively. Technology – particularly AI and advanced analytics – enhances diversity, equity and inclusion (DEI) initiatives by identifying skill gaps, tracking retention and promoting inclusivity.

“Different perspectives lead to more creative solutions,” Davies explains. “In logistics, diverse insights enable teams to navigate complex supply chains, anticipate challenges and seize opportunities.”

Take the electric vehicle market as an example. Customer expectations and regulatory frameworks differ significantly across regions. A team member well-versed in European regulations can anticipate EU compliance challenges, while North American market experts address regional consumer needs. This synergy not only aligns logistics strategies with regional demands but also strengthens relationships with diverse customer bases.

Davies elaborates, “Understanding customer needs at a granular level enables stronger relationships and tailored solutions.”

Adding further insights, speakers at the Automotive Logistics & Supply Chain Mexico 2024 conference highlighted how diversity of thought and skill addresses region-specific challenges. Establishing operations in diverse regions taps into broader talent pools and fosters teams with varied perspectives. This diversity is particularly critical for navigating the complexities of international trade agreements, such as USMCA, and adapting to digital transformation.

Specialised skills in compliance and cross-border logistics are increasingly essential. Ricardo Ortega Márquez, senior purchasing manager, customs and logistics at KIA México, emphasised the importance: “With USMCA, we need professionals who deeply understand these agreements to navigate the challenges effectively. It’s not just about compliance; it’s about creating value through informed strategies.” Ortega also explained the importance of adapting organisational structures to remain competitive, particularly in areas like procurement and localisation initiatives.

Javier Valadez, director of operations at PACCAR México, expanded on the growing demand for talent in nearshoring operations. He noted how shifting trade agreements and economic dynamics require a skilled workforce capable of managing heightened complexity. “Nearshoring has amplified the demand for skilled professionals who can manage cross-border logistics efficiently,” Valadez said. He also stressed the need for continuous learning, explaining that “the future of nearshoring lies in upskilling teams to embrace emerging technologies like AI and data analytics, which are transforming supply chain operations.”

Addressing DEI gaps in automotive

Despite some progress, the automotive industry continues to face persistent DEI challenges. Women make up only 15% of the logistics workforce, 20% of the transport sector and 3% of HGV drivers, according to the Society of Motor Manufacturers and Traders. Ethnic minorities also remain underrepresented, particularly in leadership roles.

To bridge these gaps, Davies advocates for structured leadership pipelines and proactive outreach to diverse communities. “Establishing a clear DEI vision supported by SMART (specific, measurable, achievable, relevant, time-bound) targets ensures effectiveness and sustainability,” he asserts. Mentorship programmes and equitable career development initiatives are essential for cultivating leadership that reflects the diversity of a company’s workforce and customer base.

Many organisations are increasingly adopting transparent recruitment processes and leveraging data-driven approaches to measure progress. For instance, Davies underscores the importance of workforce representation metrics in shaping targeted initiatives to support underrepresented talent, however, he cautions that success requires more than well-intentioned policies.

“Creating tangible opportunities for growth and development is critical,” he explains. “It’s about fostering an environment where diverse perspectives aren’t just welcomed but actively empowered to drive innovation and decision-making.”

Lessons from STEM

The automotive industry can draw parallels from STEM (science, technology, engineering and mathematics) fields to enhance diversity, a point Davies highlighted during his Red Sofa interview. Effective strategies include promoting career opportunities at universities and technical colleges, with a focus on electrification and advanced manufacturing technologies. “Highlighting how these fields align with candidates’ values can be particularly engaging,” Davies notes.

He further advises, “Companies must create inclusive environments where individuals feel valued and supported.” Ensuring workplace accessibility and providing equitable advancement opportunities are crucial for unlocking untapped talent pools and driving long-term success.

Strategies for retention and growth

Retention goes beyond recruitment; it requires intentional and sustained effort. Employee Resource Groups (ERGs) play a vital role in fostering community and advocacy within organisations. “ERGs provide a platform for connection,” Davies explains.

Additional strategies, such as unconscious bias training, internal mobility programmes and tailored leadership development for underrepresented groups, are key to enhancing retention and engagement. Internal mobility programmes enable employees to explore roles across departments, promoting growth while reducing turnover. Davies emphasises that tailored leadership development is essential for creating clear pathways to senior roles for underrepresented talent.

Building an inclusive culture

Inclusive cultures rely on three fundamental pillars: equitable hiring practices, workplace equity and customer-centric strategies. Transparent recruitment processes and diverse hiring panels attract a broad range of applicants. Equally important are fair salary structures and defined advancement pathways. For meaningful impact, leadership must embed DEI into the organisational strategy, aligning it with performance metrics and allocating the necessary resources.

“Inclusion is not a side project; it’s a core business strategy,” Davies asserts. He highlights the importance of leadership modelling inclusive behaviours to ensure these values permeate every level of the organisation.

Davies also emphasises the value of generational diversity. Drawing from his experience, he recalls how younger employees’ technological expertise complemented the process knowledge of more seasoned colleagues, leading to the creation of real-time operational tools.

“Collaboration across generations enriches problem-solving,” Davies reflects. This synergy not only accelerates digital transformation but also sustains operational excellence. For example, seasoned employees bring deep expertise in regulatory frameworks, while younger colleagues contribute fresh perspectives on using digital tools to enhance efficiency.

Preparing for future challenges

Diversity provides a competitive advantage in navigating uncertainties, Davies asserts. “Broad perspectives enable teams to identify risks and opportunities that others might overlook,” he explains. By integrating insights from engineering, social sciences, and economics, organisations can adopt a more holistic approach to supply chain strategy.

For instance, addressing sustainability in supply chains requires expertise spanning multiple disciplines. Diverse teams are uniquely equipped to develop comprehensive strategies that balance environmental, social, and economic considerations.

“Diversity drives innovation, and innovation drives success,” Davies concludes. The automotive sector’s ability to adapt and thrive in a rapidly evolving landscape hinges on its commitment to this principle.