Global supply chain leaders turn to automation amid workforce shortage
16 Apr 24 2 min read
Insights
- About 54 per cent of supply chain leaders are automating to counter workforce shortages, according to a study by Descartes.
- Route optimisation and mobile solutions for labourers, and real-time tracking for knowledge workers, are top tech picks.
- Flexible working hours and advanced technologies are key in attracting and retaining employees.
To enhance the efficiency of labour workers, delivery route optimisation and driver mobile productivity solutions were the primary technology investments, chosen by 54 per cent and 45 per cent of respondents respectively. For knowledge workers, such as planners and analysts, 53 per cent favour real-time shipment tracking as the key technological tool, as per the ‘What Are Companies Doing to Survive the Supply Chain and Logistics Workforce Challenge?’ study.
The Descartes study also underscores how companies are not only turning to technology but also reshaping their recruitment and retention strategies to mitigate workforce shortages. Modifying the hiring process for both labourers, including warehouse workers and drivers, and knowledge workers emerged as the most significant change, as noted by 54 per cent of participants.
In terms of attracting new employees, offering flexible working hours (35 per cent) and employing cutting-edge technologies (34 per cent) are the foremost strategies. For retention, providing on-the-job training and educational compensation (35 per cent) alongside competitive remuneration (34 per cent) are leading the way.
Moreover, the approach to managing labour challenges varies considerably across different business performance metrics. Factors such as a company's financial health, growth rates, management's valuation of supply chain operations, and the effectiveness of employee retention programs all influence the strategies, tactics, and technologies adopted to address labour constraints in the supply chain and logistics sectors.
“The workforce problem is pervasive, and the study confirms that most supply chain and logistics organizations have made changes to their operational, technology, recruitment and retention strategies to help combat the issue,” said Chris Jones, EVP, Industry at Descartes. “Based on the results of the study, we believe that employers should continue to invest and evolve to get the most they can from their existing resources and focus on more than money to hire and retain a capable workforce.”
Fibre2Fashion News Desk (DP)
Popular News
|
Japanese firm Asics Corporation's sales soar 14.3% in Q1 FY24 |
|
China dominates as India's top yarn, fabric & home textiles supplier |
|
Drewry's World Container Index up 16%, Red Sea crisis raises freight |
|
Bangladesh 3rd largest apparel supplier for Malaysia this year |
|
AEPC unveils strategy to boost India’s garment exports |
|
Bangladesh exporters hail weaker taka, experts want end to cash sops |