A Descartes survey of 1,000 North American and European supply chain and logistics decision-makers has highlighted a critical labor shortage, with 76% acknowledging the challenge. To combat this, 54% are turning to technology, automating mundane tasks to boost productivity. This move towards automation is particularly prevalent in delivery route optimization, where 54% have partially or fully implemented such technologies to enhance labor worker productivity. The disparity is notable between companies that see supply chain and logistics as a competitive advantage (63% adoption) versus those who view it as a mere necessity (28% adoption).
Technology Deployment Trends
For knowledge workers, real-time shipment tracking is the leading technology, with 53% of companies adopting it to streamline productivity. This is essential for meeting the increasing customer demand for visibility, which is otherwise a labor-intensive process. Other technologies like back-office automation and advanced analytics are also being utilized, each by 47% of respondents. Surprisingly, AI, despite its buzz, has the lowest deployment rate at 32%.
Revamping Hiring Strategies
Over half of the surveyed leaders have significantly altered their hiring approaches due to labor shortages. Flexibility in working hours is the most significant draw for new workers, especially appealing to millennials and Gen Z, followed by the adoption of cutting-edge technology and competitive pay. Companies that prioritize supply chain and logistics as key to their success are more inclined to offer flexible working hours and the latest technology to attract talent.
Retention Efforts
Investing in workforce skills is a top strategy for retaining younger employees, with on-the-job training and education compensation leading the way. Higher pay is also a significant factor, though less so among companies that don’t prioritize supply chain and logistics highly. Competitive weapon companies are more likely to offer work time flexibility as a retention strategy compared to their necessary evil counterparts.
The study underscores the necessity for supply chain and logistics organizations to evolve their operational, technological, and talent management strategies to overcome workforce challenges. The ability to adapt and invest in these areas will be a defining factor for success in the ongoing talent war.
