Automation is a top priority for 54% of Supply Chain and Logistics Operations to address workforce shortages

Descartes Systems Group recently conducted a study titled What Are Companies Doing to Survive the Supply Chain and Logistics Workforce Challenge? which revealed some interesting insights into how companies are tackling the ongoing workforce shortages in the industry. According to the study, 54% of supply chain and logistics leaders are focusing on automating non-value-added and repetitive tasks with technology to improve worker productivity.

The study highlighted that delivery route optimization and driver mobile productivity solutions were the top technology choices for labor workers, while real-time shipment tracking was the preferred technology for knowledge workers. In addition to technology investments, companies are also adapting their recruitment and retention strategies to address the workforce availability challenges.

Hiring laborers and knowledge workers were cited as the top areas that have been altered the most to combat workforce shortages. The study also revealed that working time flexibility and adopting the latest technologies were the top strategies for attracting workers, while on-the-job training and education compensation were key strategies for retaining workers.

Chris Jones, EVP, Industry at Descartes, emphasized the importance of investing in operational, technology, recruitment, and retention strategies to combat the pervasive workforce problem in the industry. The study, which surveyed 1,000 supply chain and logistics decision-makers across various sectors, aimed to understand how organizations are improving worker productivity, attracting and retaining employees, and finding alternate labor sources to mitigate workforce challenges. The results showed that strategies and technologies used vary based on financial performance, growth, and management’s perceived importance of supply chain and logistics operations.