SupplyChainTalk: Managing your supply chain workforce shortage

On 5 June 2024, SupplyChainTalk host Ana Maria Velicawas joined by Ramez Makkar, Assistant Vice President Supply Chain, L’Oreal; Sophie Taylor, Senior Supply Chain Manager, Pura; and Fernando Pontual Castelão, Diretor Supply Chain, Logística e Operações, Procurement Garage.

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A new report, “What are companies doing to survive the supply chain and logistics workforce challenge?,” found that 54% of supply chain and logistics leaders are focused on automating non-value-added and repetitive tasks. Half are co-mingling operations with other divisions to create scale and synergy. To help close the growing knowledge gap, more than half (53%) of respondents are turning to automated real-time shipment tracking. 

Companies are also seeking out new talent pools, with 43% working with trade schools to attract labour workers while 37% are partnering with universities. Immigrants (37%) are a top alternative source for workers, followed by people with disabilities (34%). Skills shortages are experienced along the whole supply chain.

Is here a reason for warehouse workers to worry?
Connectivity has made location less of a factor and it opened up more opportunities, while loyalty seems to have ceased to be the most important requirement. For recruiters, it’s also key to understand the needs and mindset of the new generation of workers. Upskilling should be continuous, as well as the training to upgrade workers’ digital skills in order to keep the workforce engaged.

Employers, however, must have an understanding of how workers want to progress with their career too and how they learn. To retain the workforce, special training programmes need to be introduced such as shadowing, rotation and apprenticeships. Without these schemes and collaborating with partners such as universities, it’s impossible to make jobs in the supply chain appealing.

In order to create a solid company culture, it’s a good idea to launch forums where representatives from different areas of the company get together in an informal setting and change feedback from other colleagues working in their division. Never underestimate the onboarding process – the first 60 days of a new employee with the company.

For an effective management of the workforce, it’s important that employees have a certain level of emotional intelligence and the concept of ESGs must be woven into the corporate fabric to turn it into a mindset rather than the theme of one-off training events. Keeping talent on the executive level is crucial too and designing development plans for them with internal or external people management experts is an effective way of making them more committed to the company. 

The panel’s advice

• Make sure that workers of different generations are on the same page.
• Even a thank you and a tap on the shoulder can go a long way to engage with and give feedback to workers.
• Get your people involved in designing your action plan to make them feel their contribution matters.