Strategies for Drawing in and Sustaining Skilled Personnel within the Realm of Logistics & Supply Chain Management
In the rapidly evolving landscape of logistics and supply chain, companies are faced with numerous challenges such as e-commerce growth, last-mile delivery demands, digital transformation, and green transitions. To succeed, these firms must invest heavily in talent development, digital skills, and sustainability initiatives.
Most consumers, leaders, and workers believe that companies have a responsibility to act on environmental, social, and governance issues (ESG). In this regard, many logistics companies are integrating the ESG agenda into their operations to create an attractive employee proposition.
One such company is Maersk, which plans to increase the proportion of women in management to 40% and the proportion of underrepresented nationalities to 30% at executive levels by 2025.
However, the logistics industry is competing for talent with other sectors, making talent attraction and retention a serious problem. Forty-nine percent of workers fear that automation will make them lose their job, and 29% of workers in the logistics sector want to quit their job in the next 12 months, compared to 27% of all workers globally.
To counteract this, companies must provide ongoing education and skills training, especially in handling new technologies such as generative AI, cloud computing, and data analytics. This includes adapting staff to new digital tools to optimize processes and solve pain points.
Moreover, building workforce pipelines and engaging governments can secure a stable labor supply. Collaborating with governments on workforce pipeline development, cross-border labor mobility, and visa policies for critical worker categories is essential for both short-term and long-term operational success.
Encouraging flexibility and adaptability in the workforce helps companies stay ahead in a rapidly changing landscape. Data literacy enables workers to make informed, proactive decisions to manage risks and optimize supply chains.
Attracting talent increasingly depends on a company’s commitment to green initiatives such as reducing waste and emissions. Embedding sustainability into operations is not only expected but vital for the industry's future.
To handle the e-commerce boom, companies can partner with skilled third-party logistics (3PL) providers that specialize in hyperlocal fulfillment and omni-channel integration, enabling faster, more reliable last-mile delivery.
Placing advanced manufacturing and R&D facilities in tech-forward regions attracts the desired digital talent and supports the integration of emerging technologies into supply chains.
Implementing performance measurements that include workforce-related metrics ensures resilience is valued alongside cost competitiveness, thus fostering sustainable workforce planning and operational continuity.
When layoffs are inevitable, industry players must provide outplacement services and employment bridges to help workers find new opportunities. Some companies are considering four-day workweeks or remote work on certain days to help workers deal with increased childcare or elderly care responsibilities.
To drive a successful transformation, the HR talent management strategy can be structured around four pillars: Increased Flexibility, Career Opportunities, Better Change Management, and a strong ESG Plan.
Our new whitepaper, "The Future of Workforce and Talent in the Logistics and Supply Chain Industry," identifies key trends that define the industry's challenges and proposes ways to drive a successful talent transformation.
[1] https://www.forbes.com/sites/forbesbusinesscouncil/2021/11/17/how-to-future-proof-your-supply-chain-workforce/?sh=5c24e1476167 [2] https://www.mckinsey.com/business-functions/mckinsey-digital/our-insights/the-future-of-workforce-and-talent-in-logistics-and-supply-chain [3] https://www.mckinsey.com/industries/automotive-and-assembly/our-insights/the-future-of-workforce-and-talent-in-automotive [4] https://www.mckinsey.com/business-functions/mckinsey-digital/our-insights/the-future-of-workforce-and-talent-in-retail
- The digital transformation in logistics and supply chain requires companies to invest in talent development, focusing on digital skills and sustainability initiatives to stay competitive.
- Workers, leaders, and consumers believe that companies have a responsibility to address environmental, social, and governance (ESG) issues.
- Maersk aims to increase the proportions of women and underrepresented nationalities in management by 2025.
- Talent attraction and retention are significant issues in the logistics industry, with 29% of logistics workers planning to quit in the next year.
- Ongoing education and skills training, especially in emerging technologies like generative AI, cloud computing, and data analytics, are crucial for staff adaptation.
- Building workforce pipelines and collaboration with governments can secure a stable labor supply for long-term operational success.
- Embracing flexibility and adaptability within the workforce is essential for companies to keep pace with rapidly changing landscapes.
- Data literacy is vital for workers to make proactive decisions, manage risks, and optimize supply chains.
- A commitment to green initiatives, such as reducing waste and emissions, is increasingly important for attracting talent and securing the industry's future.
- Partnering with skilled third-party logistics (3PL) providers can help companies handle the e-commerce boom, offering rapid and reliable last-mile delivery.
- Placing advanced manufacturing and R&D facilities in tech-forward regions helps attract digital talent and integrate emerging technologies into supply chains.
- Performance measurements that include workforce-related metrics can foster sustainable workforce planning and operational continuity.
- When layoffs occur, outplacement services and employment bridges should be provided to help workers find new opportunities.
- Four-day workweeks or remote work options can help employees manage increased childcare or elderly care responsibilities.
- The HR talent management strategy can be structured around four pillars: Increased Flexibility, Career Opportunities, Better Change Management, and a strong ESG Plan.
- The future of workforce and talent in logistics and supply chain depends on understanding key trends, as outlined in the whitepaper "The Future of Workforce and Talent in the Logistics and Supply Chain Industry."
- Forbes Business Council provides insights on future-proofing supply chain workforces. [1]
- McKinsey & Company offers insights on the future of workforce and talent in logistics and supply chain. [2]
- McKinsey & Company also offers insights on the future of workforce and talent in the automotive industry. [3]
- McKinsey & Company provides insights on the future of workforce and talent in the retail sector. [4]
