Companies are grappling with a significant shortage of supply chain talent. According to recent research by Alcott Global, 48% of companies view this talent shortage as a critical challenge, a slight decrease from 50% in 2023. The research involved 152 supply chain executives from major multinational corporations.
In 2024, specialized skills such as data analysis (59%), understanding the latest supply chain technology (45%), and sustainability practices have become particularly sought after. In contrast, the 2023 survey emphasized the need for a holistic understanding of the end-to-end supply chain (89%) and problem-solving leadership skills (80%). However, a comprehensive understanding of the end-to-end supply chain remains a top requirement, scoring a staggering 96% this year.
Industry Transformation: Technology and Sustainability at the Forefront
The shifting demands underscore a broader transformation within the industry. Technology and sustainability are no longer peripheral issues but have become central to strategic decision-making. The survey also indicates a growing emphasis on environmental, social, and governance (ESG) practices. The percentage of respondents who view sustainability as a crucial skill for supply chain teams has risen from 33% in 2023 to 38% in 2024.
This trend reflects the increasing regulatory and consumer pressures that compel organizations to incorporate environmentally friendly practices into their operations. As companies navigate these changes, they also face the challenge of retaining top talent, with 22% of executives viewing high employee turnover as a major concern.
The Challenge: Finding Candidates with the Right Skills
When asked about the biggest challenge in recruiting for senior supply chain roles, 65% cited finding candidates with the right skills. According to 59%, the shortage of talents with technical skills, such as data analytics and supply chain automation, is a challenge. Reducing the lead time for hiring people and the lack of diversity among supply chain candidates score 35% and 27%, respectively. Retaining talent and minimizing staff turnover is a challenge for 22%.
Changes in geopolitics, trade policies, and customs regulations are the main concern for 70% of the supply chain executives surveyed. Changing customer expectations and demand patterns are in second place with 59%. This is followed by talent shortage and retention at 48%, while only one in five respondents are concerned about rising labor costs.
Looking Ahead: Cost Reduction and Digital Transformation
As top priorities for the supply chain in 2024, supply chain executives cite cost reduction and digital transformation; both topics score 76%. Interestingly, only 47% of respondents consider implementing sustainable and environmentally friendly practices a top priority.
