supply chain labor pool issues 2015

The supply chain has increased in complexity and size in recent years which is affecting who and how the industry hires and how they train their employees during the onboarding process. These changes are due, in large part, to the adoption of omni-channel retailing, direct to store delivery, changing customer expectations and much more.

Supply chain service providers are all experiencing one significant issue across the board – talent shortages. This is because supply chain growth is expected to outpace all other industries by nearly one hundred percent between 2010 and 2020. As the supply chain industry grows so does the need for qualified candidates. This is root of the problem. Supply chain labor demand will exceed the supply of labor six to one. This could mean that a large proportion of jobs will go unfilled or will be merged to lower the labor demand. Because these merges will only make supply chain management positions more complex, now only 20% of the labor pool will require the skills necessary to fill these technical positions. This issue will only further be exacerbated by regular seasonal fluctuations typically experienced by businesses such as 3PLs, warehouses, distribution centers and manufacturers where more staff is required to meet changing demand.

Another aspect of the hiring environment affecting the available labor pool is the pending retirement age for many “Baby Boomers”. It is estimated that by 2025 approximately 60 million Baby Boomers will have exited the workforce and a mere 45 million, less experienced, GenXers will replace them. In many instances these GenXers will be less educated in how the supply chain operates due to the shortfall of supply chain management educators available. This has created a “talent gap”. Of supply chain CEOs surveyed 82% believe the talent gap will affect their business’ ability to meet customer demand and 69% believe it will impact their ability to provide exceptional customer service.

To help solve these issues many executives in the SCM environment are investing above average dollars in talent development areas. This is just one of the many ways businesses are trying to adapt to labor pool shortages and talent gaps. To learn more about labor issues affecting the supply chain or labor management technology contact Datex experts today at 800.922.2839 or www.datexcorp.com.

Featured Content

The Friday Report: February 15th, 2019

Amazon Reportedly Plans Fee Reduction to Compete with FedEx and UPS According to the Wall Street Journal, Amazon Shipping is planning to slash fuel surcharges and additional home delivery charges.  The information was based on an email sent by Amazon to New York area...

The Friday Report January 25, 2019

Will Brexit Lead to Hunger in the UK? With the UK poised to exit the European Union in late March, industry experts are raising concerns about the country’s ability to provide an adequate supply of food for its citizens.  The National Farmers’ Union...

Impact of Partial Government Shutdown on the U.S. Supply Chain

What is a government shutdown? According to U.S. law, the Congress is responsible for periodically passing legislative bills to approve federal government spending.  The bills may last for a year, a few months or for a few weeks and may be designed to fund part of or...

Stay Informed!
 

Stay Informed!

 

Join our mailing list to get alerted when a new blog is posted!

You have Successfully Subscribed!

Pin It on Pinterest

Share This