The intricate web of global commerce relies heavily on a skilled and agile supply chain talent pool. However, the current landscape presents a formidable challenge: a significant supply chain talent shortage. This scarcity isn’t just a minor inconvenience; according to Sourcemap, “a staggering 80% of respondents reported trouble finding and keeping supply chain-focused employees.” This reality underscores the urgent need for proactive strategies to secure the workforce that keeps goods flowing efficiently.
Understanding the Scope of the Supply Chain Talent Shortage
The reality of the supply chain talent shortage presents a considerable risk to organizations across industries. McKinsey & Company’s survey highlights that “a slowdown in resilience-building efforts, gaps in supply chain visibility, compliance challenges, and talent shortages leave many organizations exposed to future disruptions.” This underscores that the lack of qualified professionals not only impacts day-to-day operations but also jeopardizes long-term stability and the ability to adapt to evolving global challenges.
Looking ahead, the situation appears likely to intensify. A recent Forbes article discusses how the increasing adoption of technologies like robotic process automation and artificial intelligence, while intended to improve efficiency, will likely widen the supply chain talent gap over time. These advancements demand a workforce with new and specialized skills, further straining the existing pool of qualified candidates.
The concerns of industry professionals echo these findings. SupplyChainBrain reports that staffing shortages remain a top challenge for the supply chain in 2024, indicating that this issue is not abating. The complexities of the modern global marketplace, coupled with evolving technologies, are exacerbating the difficulty in finding and retaining skilled individuals.
Adding further context, according to S&P Global the COVID-19 pandemic brought to light pre-existing labor shortages in industrialized countries. These shortages are partly due to challenging demographic trends that cannot be easily reversed, compounded by political restraints on immigration in developed markets. This broader economic context further complicates the efforts to address the specific supply chain talent shortage.
Tip 1: Deploy Proactive Talent Acquisition Strategies
Rethinking recruitment is a necessary first step to attract top supply chain talent. Organizations need to move beyond traditional recruitment methods and explore a wider range of channels.
- Expand Reach: Deploy targeted social media campaigns that position you as an employer of choice and give potential job candidates a realistic idea of what it’s like to work at your company. Good talent/employer branding has a big impact on the ability to reach and engage today’s job seekers.
- Showcase Value: Highlight your company culture and the opportunities for professional growth within your organization. Candidates are often drawn to companies that invest in their employees’ futures. Build development programs that aim to create career pathways instead of just using performance reviews to determine growth opportunities.
- Broaden Geographic Scope: For most manufacturing and supply chain jobs, being on site is essential. But there are some back office and admin roles that can be done from anywhere. Explore the possibility of remote work opportunities and consider talent pools outside of your immediate geographic boundaries to access a wider range of qualified individuals.
Tip 2: Invest in Continuous Training and Upskilling
Addressing the skills gap requires a strong commitment to ongoing training for supply chain talent. The rapid pace of technological advancements necessitates that employees continuously update their knowledge and abilities.
- Internal Programs: Develop internal training programs focused on emerging technologies, data analytics, automation, and the latest advancements in supply chain management.
- External Partnerships: Establish partnerships with educational institutions, vocational training centers, and online learning platforms to provide employees with access to specialized courses and certifications.
- Cross-Training: Implement cross-training initiatives to broaden employees’ skill sets and create a more versatile workforce capable of filling different roles as needed.
This type of talent development effort will prepare your workforce for the transition into Industry 5.0. Learn more about the workforce of the future here.
Tip 3: Enhance Employee Retention
Retaining valuable supply chain talent is just as important as attracting new employees. High turnover rates can be costly and disrupt operations. Competitive wages are table stakes. Our recent supply chain workforce survey reveals that having preferred shifts, a good culture, and growth opportunities are often more important than pay for attracting high quality candidates.
Here are several factors that are a top priority:
- Offer Shifts Workers Want: Working 8 hour shifts 5 days a week is the most popular option. But a 10 hour shift 4 days a week is also very popular – and most companies don’t offer that option. If you can, this may broaden your appeal and help you keep workers longer. Check out our supply chain workforce survey for more on this.
- Growth and Development: Provide clear pathways for career development and advancement within the organization. Workers who see a future are more likely to stay.
- Positive Environment: Cultivate a positive and inclusive work environment where employees feel valued, respected, and have opportunities for collaboration and growth.
Tip 4: Leverage Technology for Efficiency
Deploying technology strategically can help optimize your existing supply chain talent and potentially reduce the need for additional hires in certain areas.
- AI and Automation: Explore how AI and automation can streamline repetitive tasks, freeing up human employees to focus on more complex and strategic activities.
- Data-Driven Decisions: Implement technologies that enhance data visibility and analysis, empowering your team to make more informed and efficient decisions.
- Empower Employees: Ensure your employees have the necessary technological tools and training to perform their jobs effectively and efficiently.
- Onboarding and Training Tech: Utilize technology to improve onboarding and training processes, making it easier and faster to bring new hires up to speed.
Tip 5: Build Strategic Partnerships
Collaborating with external organizations can significantly expand your supply chain talent resources.
- Specialized Staffing Agencies: Partner with Total Talent for a partner who specializes in recruiting for supply chain roles. Our expertise and networks can provide access to a wider pool of qualified candidates.
- Industry and Educational Collaborations: Engage with industry associations and educational institutions to build relationships, access potential talent pipelines, and stay informed about workforce development trends.
- Networking: Actively participate in industry events and build relationships with other professionals and organizations in the supply chain field.
- Third-Party Training: Consider working with third-party training companies to provide specialized skill development programs for your existing workforce.
Total Talent Resources Can Help You Cultivate Supply Chain Talent
Bridging the supply chain talent gap requires a multifaceted approach that encompasses proactive recruitment, continuous development, robust retention strategies, smart technology utilization, and strategic collaborations. The current supply chain talent shortage presents a significant challenge, but by implementing these tips, organizations can build a more resilient and skilled workforce.
Total Talent Resources understands the complexities of the current labor market and specializes in connecting companies with the right talent to navigate these challenges. We can partner with you to develop and implement tailored strategies to attract, train, and retain the supply chain talent your organization needs to thrive. Contact us today to learn how our expertise can help you build a strong and sustainable supply chain workforce.