TAKEAWAYS Shaping the Future of the Global Supply Chain
WORKFORCE WOES: TECHNOLOGY TO THE RESCUE? It’s no secret that supply chain operations are experiencing notable workforce shortages. A January 2024 report from logistics technology solutions provider Descartes showed 76% of survey respondents agreeing with that statement and 61% saying the problem is extreme. So how are companies coping? And what are they planning for the future? That is the focus of Descartes’ newest survey, What Are Companies Doing to Survive the Supply Chain and Logistics Workforce Challenge? Some 1,000 industry decision-makers responded to the survey, sharing strategies that span across technology investment and deployment, recruitment and retention, and e orts that involve external resources. Here are some key highlights: Technology: • 54% of supply chain and logistics leaders are focused on automating non-value-added and repetitive tasks with technology to improve worker productivity. • Warehousing operations (40%) and transportation operations (32%) are the top areas for technology investment. • Delivery route optimization (54%) and driver mobile productivity solutions (45%) are the top technology choices for mitigating labor shortages. Strategy: • 50% are co-mingling operations with other divisions to create scale and synergy. • 40% are leveraging fleet and common carriers while 39% are co-mingling operations with other companies. Attracting Workers: • Working time flexibility (35%) and adopting the latest technology (34%) are top tactics for attracting workers. • 43% are working with trade schools to attract workers, while 37% are partnering with universities. • Immigrants (37%) are a top alternative source for workers, followed by people with disabilities (34%). Which of the following tactics is your organization using to attract workers?
WHERE DOES RESILIENCY REIGN? If you’re looking to locate or expand your company in the world’s most resilient business atmosphere, head to Denmark. The small Scandinavian country ranks highest on a diverse spectrum of 18 resilience factors, including logistics strength, education, and inflation, according to the 2024 FM Global Resilience Index from commercial property insurer FM Global. The factors are sourced from a combination of respected third parties and FM Global’s vast engineering database, which draws upon data from FM Global property risk engineers who visit and assess more than 100,000 locations annually around the world. This year’s index also incorporates proprietary AI-enhanced risk modeling. The 10 countries with the most resilient business climates are: Denmark 2 Luxembourg
3 Singapore 4 Switzerland 5 Germany 6 Sweden
7 Finland 8 Norway 9 Belgium 10 Central United States
( The U.S. is divided into three separately ranked regions. )
Source: Descartes
14 Inbound Logistics • May 2024
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