TAKEAWAYS Shaping the Future of the Global Supply Chain
NEW EXEC MUST-HAVE: GenAI Training Continuing to create buzz across the supply chain sector, generative artificial intelligence (GenAI) is at the top of the priority list for most companies today. A new Accenture survey shows 87% of C-suite executives responsible for supply chain and production plan to invest more in GenAI. And 85% expect to reap the returns of their generative AI investments already in 2024. But the survey shows these executives also recognize they need to better understand the technology and its potential, and they need widespread GenAI training across their organizations . Only 15% are highly confident they currently have the right data strategy and digital capabilities to use generative AI effectively. Other interesting takeaways on GenAI training perceptions: • 74% of respondents feel they need at least some level of training in GenAI. • 18% recognize the necessity for extensive training in this area. • 42% claim to be personally using GenAI tools at least once per week, down from 71% just six months ago. • 54% believe their organization requires intermediate-level training in the technology, such as prompt engineering and model fine-tuning. • 40% think the most crucial need
EQUIPMENT AND PAY WILL MAKE DRIVERS STAY Despite signs of improvement in the freight market, carriers and drivers continue to grapple with the lingering effects of the freight recession. Competition for drivers is intensifying, leading to a rise in driver turnover as evidenced by an increase in CDL driver job postings and truck driver job seekers. This is the key message from the Q1 2024 Driver Recruiting & Retention Data Download Report, compiled by Conversion Interactive Agency and People. Data. Analytics. (PDA). “It’s crucial for carriers to reassess their recruitment and retention strategies,” says Kelley Walkup, president and CEO of Conversion Interactive Agency. “Several Q1 data points indicate that driver demand is increasing. With many carriers seeing improvement in freight volumes, now is the time to review the driver pipeline and be ready for the rebound.” The Q1 data highlights equipment and compensation as drivers’ top concerns and the main reason drivers voluntarily decide to leave their carrier. However, there was a notable shift in compensation issues, with fewer drivers attributing pay problems solely to miles. Here’s a closer look at what the data indicates: • Driver messaging is important for recruiting and retention. “Amidst evolving trends in driver pay and competition dynamics, it’s imperative for carriers to deliver accurate equipment and pay messaging in their recruitment marketing,” notes Walkup. The Q1 data shows “pay” and “equipment” were top keywords from online driver reviews last quarter. • Today’s drivers also emphasize the need for predictable pay in the current freight market. “Implementing strategies to maintain consistent movement for drivers and ensuring their expectations are aligned appropriately are crucial steps in addressing pay- related concerns,” says Scott Dismuke, vice president of operations at PDA. “Ultimately, the significance of a higher pay rate diminishes if drivers are not consistently logging miles.” • Compensation concerns go beyond mileage. Q1 2024 marked the first time in five quarters that fewer than half of drivers surveyed attributed their compensation woes to miles. “Compensation became the top worry for drivers for the first time since late 2022. Fewer drivers are talking about miles, while more are talking about pay rate,” Dismuke added. “There has been a 3% drop in issues related to miles. This suggests a significant change in driver priorities, as compensation concerns now take precedence over the traditional focus on miles driven.”
is advanced training, such as developing GenAI models and applications.
16 Inbound Logistics • June 2024
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