Business, Freight News, Logistics

3PLs Automate to Solve Workforce Shortages

[ May 9, 2024   //   Gary G Burrows ]

More than half of supply chain and logistics leaders are focused on automating non-value-added and repetitive tasked with technology to improve worker productivity in the face of workforce shortages, according to a study released April 15 from Descartes Systems Group.
The study, What Are Companies Doing to Survive the Supply Chain and Logistics Workforce Challenge, underscores the many functions in supply chain and logistics that are routine and non-integrated, requiring manual intervention, Descartes said.
Top technology choices in the study to help drive productivity gains for labor workers, the top technology choices in the study were delivery route optimization (54 percent) and driver mobile productivity (45 percent) solutions. For knowledge workers, the top technology choice in the study was real-time shipment tracking (53 percent).
In addition to making technology investments to help combat supply chain and logistics workforce shortages, the study indicates companies are also adapting their recruitment and retention strategies and tactics. Descartes’ study found that hiring laborers, such as warehouse workers and drivers), and knowledge workers (e.g., planners, managers, analysts) were the top areas cited (54 percent) as having been altered the most to address workforce availability challenges.
Study findings also revealed that working time flexibility (35 percent) and adopting the latest technologies (34 percent) were the top strategies for attracting workers, while on-the-job training and education compensation (35 percent) and higher pay (34 percent) were the top strategies for retaining workers.
“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, executive vice president, 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.”
The study’s results also showed that the strategies, tactics and technologies companies use to address labor constraints vary by financial performance, growth, management’s perceived importance of supply chain and logistics operations, and by how successful employee retention programs are.
Descartes and SAPIO Research surveyed 1,000 supply chain and logistics decision-makers in late 2023 across three sectors: manufacturing, distribution and retail; carriers; and logistics services providers. The study sought to understand what supply chain and logistics organizations are doing to improve worker productivity, attract and retain employees and find alternate labor sources to mitigate workforce challenges today and in the future.
Respondents were based across nine European countries, Canada and the U.S., and held owner, C-suite, director and manager-level positions in their respective organizations.
The full report is available at https://engage.descartes.com/descartes-insights/items/what-are-companies-doing-to-survive-the-supply-chain-and-logistics-workforce-challenge.
An additional Descartes report, How Bad is the Supply Chain and Logistics Workforce Challenge?, looked at how acute workforce shortages are in supply chain and logistics operations and the impact of resource constraints on companies’ operations and business success. The report is available at https://engage.descartes.com/descartes-insights/items/how-bad-is-the-supply-chain-and-logistics-workforce-challenge.
Descartes, based in Waterloo, Ontario, Canada provides on-demand, software-as-a-service solutions focused on improving the productivity, security and sustainability of logistics-intensive businesses.

Tags: Descartes