Descartes Systems Group, a leader in uniting logistics-intensive businesses in commerce, released findings from its study “What Are Companies Doing to Survive the Supply Chain and Logistics Workforce Challenge?” on Monday, and its findings are telling.
In an April 15 news release, Descartes said its study shows that 54% of the supply chain and logistics leaders surveyed are focused on automation, using technology to improve worker productivity by eliminating repetitive and routine tasks.
The study revealed that the top technology choices among those surveyed to help drive productivity gains include delivery route optimization (54%) and driver mobile productivity (45%) solutions. The top technology choice for knowledge workers was real-time shipment tracking (53%).
In addition to making technology investments to mitigate workforce shortages, the study indicates companies are also adapting recruitment and retention strategies and tactics. According to the survey, hiring laborers — warehouse workers and drivers— and knowledge workers — planners, managers, analysts — were the top areas cited (54%) as having been altered the most to address workforce availability challenges.
Study findings also revealed that working time flexibility (35%) and adopting the latest technologies (34%) were the top strategies for attracting workers. In comparison, on-the-job training and education compensation (35%) and higher pay (34%) were the top strategies for retaining workers.
“The workforce problem is pervasive, and the study confirms that most supply chain and logistics organizations have changed their operational, technology, recruitment and retention strategies to help combat the issue,” said Chris Jones, executive vice president of Industry at Descartes.
“Based on the study results, 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,” Jones added.
The study’s results also showed that companies' strategies, tactics and technologies for addressing labor constraints vary by financial performance, growth, management’s perceived importance of supply chain and logistics operations, and the success of employee retention programs.
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.
Descartes said the goal was 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 United States, and held owner, C-Suite, director and manager-level positions in their respective organizations. For more information, read the Descartes’ report HERE.
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