More than half of supply chain and logistics operations are prioritising automation to mitigate workforce shortages, according to a study by Canadian logistics technology company Descartes.

It found that delivery route optimisation and real-time shipment tracking were the top technology choices to improve productivity.

The study – What Are Companies Doing to Survive the Supply Chain and Logistics Workforce Challenge? – shows that 54% of the supply chain and logistics leaders surveyed are focused on automating non-value-added and repetitive tasks with technology to improve worker productivity in the face of workforce shortages. Many functions in supply chain and logistics are routine and non-integrated, requiring manual intervention.

To help drive productivity gains for labour workers, the top technology choices in the study were delivery route optimisation (54%) and driver mobile productivity (45%). For knowledge workers, the top technology choice in the study was real-time shipment tracking (53%).

In addition to making technology investments to help combat supply chain and logistics workforce shortages, the study indicates companies are also adapting their recruitment and retention strategies and tactics. According to the study, hiring labourers such as warehouse workers and drivers and knowledge workers such as planners, managers and analysts were the top areas cited (54%) as having been altered the most to address workforce availability.

Study findings also revealed that working time flexibility (35%) and adopting the latest technologies (34%) were the top strategies for attracting workers, while on-the-job training and education compensation (35%) and higher pay (34%) were the top strategies for retaining workers.

“The workforce problem is pervasive, and the study confirms that most supply chain and logistics organisations have made changes to their operational, technology, recruitment and retention strategies to help combat the issue,” said Chris Jones, executive vice president at Descartes. “Based on the results of the study, we believe that employers should continue to invest and evolve to get the most they can from their existing resources and focus on more than money to hire and retain a capable workforce.”

The study’s results also showed the strategies, tactics and technologies used by companies to address labour constraints vary by financial performance, growth, management’s perceived importance of supply chain and logistics operations, and the success of employee retention programmes.

Descartes and Sapio Research surveyed 1000 supply chain and logistics decision-makers in late 2023 across three sectors: manufacturing, distribution and retail; carriers; and logistics services providers. The goal was to understand what supply chain and logistics organisations were doing to improve worker productivity, attract and retain employees and find alternate labour sources to mitigate workforce problems today and in the future. Respondents were based across nine European countries, Canada and the USA, and held owner, c-suite, director and manager-level positions.

For the full report, go to engage.descartes.com/descartes-insights/items/what-are-companies-doing-to-survive-the-supply-chain-and-logistics-workforce-challenge.

Descartes (www.descartes.com) provides on-demand, software-as-a-service focused on improving the productivity, security and sustainability of logistics-intensive businesses. Its headquarters are in Waterloo, Ontario, Canada, and it has offices and partners around the world.