The global supply chain has faced unprecedented challenges over the past few years. The COVID-19 pandemic caused shutdowns and labor shortages, leading to major delays and disruptions that have slowly shown improvement over the last year.
More recently, high inflation and an uncertain economic outlook have further strained supply chains. For companies trying to move goods globally, one of the biggest pain points has been a shortage of qualified talent to manage increasingly complex supply chain operations.
Recent Supply Chain Disruptions
The supply chain disruptions started in early 2020 as the COVID-19 virus spread rapidly around the world. China, a critical manufacturing hub, shut down factories for months. When they restarted production, a surge in demand for home goods and electronics led to shortages of key components like semiconductors.
With raw materials lacking, assembly lines slowed, and shortages rippled across industries.
Compounding the component shortages, labor shortages at ports, warehouses and trucking companies made it difficult to move goods.
We’ve even covered some of these logistics difficulties in past discussions.
While pandemic impacts have eased somewhat, new problems have emerged. In the U.S., inflation has slowed consumer demand at a time when companies have excess inventory needing to move.
The uncertain economy makes it harder for supply chain managers to predict and plan for optimal inventory levels. These levels of uncertainty not only lead to slower supply chain processes but can hit a supply chain where it really hurts; talent acquisition.
The Talent Shortage
Ongoing supply chain disruptions reveal how essential qualified talent is. Supply chains have become extremely complex. Managing inventory flows, logistics, relationships with 3PLs and more requires strategic thinking and expertise.
Unfortunately, supply chain management faces a widening skills gap. According to DHL, even though more universities offer degree courses in logistics and supply chain management, our industry still faces difficulties filling management positions.
Adding to hiring challenges, supply chain work with an understaffed team can be stressful and demanding, leading to high turnover. Long hours and overnight shifts are common. Manual, repetitive warehouse tasks lead to fatigue and burnout. Employee retention suffers, increasing recruiting and training costs.
How Companies are Responding
Facing these talent challenges, companies are getting creative with recruitment, training, compensation, and technology.
Some are focusing on outreach to untapped talent pools. Veterans, women returning to work, and minorities are targeted for recruitment and training initiatives.
Companies have also increased pay and benefits where they can to attract and retain talent. Bonuses and wage increases compensate for demanding supply chain roles.
Optimizing processes through technology is another strategy. Warehouse management systems, inventory optimization software, and automation enable companies to do more with fewer employees. Companies like GFS Logistics utilize technology to maximize productivity.
The GFS Logistics Approach
GFS Logistics understands attracting and retaining supply chain talent requires a multi-pronged approach, and we’re here to help brands attract talent and retain their current employees. As a nationwide 3PL located in Dallas, TX, we know how to manage distribution centers and help retain talent within your supply chain.
GFS Logistics also invests heavily in warehouse management systems (WMS) and warehouse automation. Using the latest WMS, workers are guided through best practices for storage, picking, and shipping.
Our automated processes in scanning and sorting allow workers to be more productive. This optimization means expanded output without overburdening employees.
For warehouse clients, we deliver operational expertise tailored to each company’s needs. Detailed analytics provide insights to improve planning and inventory positioning. Our streamlined processes reduce waste and errors.
Through our thorough warehouse management efforts we can help expand capacity and throughput without clients needing to invest in more facilities or staff during times of low talent acquisition.
Get Through the Talent Crunch With GFS Logistics
The supply chain talent shortage is added to a laundry list of issues that are making reliable logistics a pain point for many brands.
Don’t let the talent squeeze leave your supply chain in a slump. Trust the experts at GFS Logistics to help you get through these times without having to make adjustments that eat away at your bottom line.
Our warehouse management strategies, shipping connections, and software we bring to your brand can help your logistics succeed no matter the industry struggles. Contact us today to learn more about our services.