Global supply chain leaders turn to automation amid workforce shortage

Source:China Sport ShowRelease time:02-May-2024Clicks:

Article From：fibre2fashion

About 54 per cent of global supply chain and logistics leaders are now prioritising the automation of repetitive and non-value-added tasks to bolster worker productivity, according to a study conducted by Descartes Systems Group. This shift is largely in response to significant workforce shortages, highlighting the need for technological integration in routine supply chain functions that currently depend on manual effort.

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.”