Supply chain labor challenges persist

More than half of supply chain and logistics leaders surveyed said they are focused on automating non-value-added and repetitive tasks to improve worker productivity in the face of persistent labor shortages. That’s according to a report from supply chain software vendor Descartes Systems Group, released this week.

The report is based on survey responses from more than 1,000 business leaders from manufacturing, distribution, and retail companies; carriers; and logistics services providers.

For laborers, the top technology choices identified in the survey were delivery route optimization (54%) and driver mobile productivity (45%) solutions. For knowledge workers, the top technology choice for automating tasks was real-time shipment tracking (53%).

The study also found that companies are adapting their recruitment and retention strategies to combat today’s labor challenges. The majority of companies surveyed (54%) said they have altered their strategies for hiring all types of workers, including warehouse employees and drivers as well as planners, managers, and analysts. Flexibility (35%) and technology adoption (34%) were cited as the top strategies being used to attract workers, while compensation for on-the-job training and education (35%) and higher pay (34%) were cited as 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,” Chris Jones, executive vice president, industry at Descartes, said in a statement announcing the findings. “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.”

Descartes’ report, What Are Companies Doing to Survive the Supply Chain and Logistics Workforce Challenge? was published April 15.