Professional Documents
Culture Documents
Meeting the
need for talent
While the turbulent market has created headaches for shippers, carriers,
and service providers, our study also focused on one of the most critical
threats facing today’s logistics and supply chain leaders: people.
B
Somewhat disagree 24.3%
roken, stressed, strained, and out of sync. All have
been featured in recent headlines describing the Neither agree nor disagree 9.9%
Supply chain even made Lake Superior State University’s Strongly agree 23.8%
2022 Banished Words List, suggesting supply chain is
My organization has the talent and skills needed
“overused” and “the scapegoat of everything that doesn’t to meet the requirements and challenges expected
happen or arrive on time.” over the next 3-5 years
Weary from two years of disruption, some are even
questioning if the current state of many supply chains is Strongly disagree 15.6%
simply the “new normal” (#8 on the banished word list).
Somewhat disagree 33.3%
Prior to the last two years, few outside the industry were
Neither agree nor disagree 13.9%
even interested in supply chains. So, the frustration is under-
Somewhat agree 25.6%
standable. We have grown increasingly accustomed to the
Strongly agree 11.7%
convenience of selecting from a nearly unlimited array of
products, purchasing with a single click, and having products Source: 31st Annual Study of Logistics and Transportation Trends
LOGISTICSMGMT.COM ME E T I N G T H E N E E D F O R TAL E N 3
EXCLUSIVE: Study of Logistics and Transportation Trends
% transportation spend by mode since…The pandemic exposed the shortage at every level
from the warehouse to the top.”
0.6%
Domestic ocean (barge) -0.4 In this year’s “Study of Logistics and Transportation
0.2%
Trends,” only 23.7% of respondents agreed that their organiza-
0.3%
Ocean (domestic) 0.02 tion has the talent and skills needed to meet current require-
0.3%
ments and challenges, and 74% expected it to be difficult or
0.7%
Air freight (domestic) 1.5 extremely difficult to fill those needs in the upcoming year.
2.2%
Digging deeper into the specific skill needs, the study
3.2%
Rail -0.8 found both general laborer and skilled positions were dif-
2.4%
ficult to fill. As we found this year, 81% of respondents
4.6%
Air freight (international) -0.9 indicated it was either “somewhat” or “extremely difficult” to
3.7%
fill general laborer positions, while 86% reported difficulty
4.0%
Intermodal -0.2
filling driver and equipment operator related positions.
3.8%
Manufacturing and service-related positions were equally
16.0%
Dedicated -11.6
challenging, with 90% of respondents reporting difficulty
4.4%
6.6%
filling mechanic and technician type positions, and 84%
Small package -0.7
5.9% reporting difficulty filling positions for manufacturing trades
9.6%
such as welders and machinists.
International ocean 1.6
11.2%
8.0%
Skill gap
Surface parcel 5.0
13.0% Going forward, the talent picture appears even more challeng-
7.0% ing. As technology rapidly transforms logistics and supply chain
Private fleet 7.0
14.0% operations, the skills needed in the future will likely be much
12.8% different than the skills required today.
LTL 3.5
16.3% Unfortunately, less than 12% of study respondents “strongly
23.5% agree” that their organization has the talent and skills needed
TL -0.5
23.0% to meet the requirements and challenges expected in the next
3 years to 5 years.
2021 YoY change Respondents expect Internet of Things-based technolo-
2022 (2022 – 2021) gies to make the most significant impact on logistics and
supply chains over the next 3 years to 5 years. A number of
Source: 31st Annual Study of Logistics and Transportation Trends
the other top ranked technologies could help mitigate talent
shortages and skill gaps.
constraints and to meet customer needs. Spending for both For example, robotics and automation promise to make
truckload and less-than-truckload increased over the last two supply chains more efficient and less labor intensive, while
years. The results also reflect increased spending for private Artificial Intelligence can enhance human performance and
fleets as shippers looked to reduce costs and ensure capacity. decision making.
Technology alone will not resolve the logistics and supply
Help wanted chain talent issues; in fact, technology is actually a double-edged
Obtaining, training, and retaining talent is another critical sword. New skillsets will be needed as technologies are inte-
issue facing logistics and supply chain leaders and businesses. grated into supply chains, making it even more critical to recruit,
People are the most important link in the supply chain, and train and retain top talent. As we found in this year’s survey, only
without a doubt, supply chains desperately need people. 6.75% of respondents “strongly agree” that adopting new tech-
According to Abe Eshkenazi, CEO of the Association for nologies will reduce the dependence on employee talent.
Supply Chain Management (ASCM): “Talent was a seri- Almost 80% of respondents “agree” or “strongly agree”
ous situation prior to the pandemic. It has become a crisis that the number of technologies employees must use is
L&T jobs compared to jobs in other industries increasing, while nearly 55% “agree” or “strongly agree”
3.2% that their current employees lack the skills to use the
15.9% technologies effectively. Interestingly, almost 70% of
Career progression 38.9%
29.9% respondents “agree” or “strongly agree” that adopting
12.1%
new technologies may help their organization attract and
2.6%
27.6% recruit new talent.
Defined career paths 39.7%
26.9%
3.2% A perception problem
2.5% A key to tackling the logistics and supply chain tal-
24.2%
Pay 31.8%
ent threat will be improving the perception of logistics
33.1% and transportation careers. We conducted a number of
8.3%
3.2%
Benefits 15.9% Technology and talent
54.1%
(e.g., medical, retirement, etc.) 23.6% 4.3%
3.2% The amount of money and time 16.0%
17.3%
invested in training employees to 33.7%
31.4% use these technologies are very high 33.1%
Flexibility
32.1% 12.9%
(e.g. work location, times, etc.) 16.7%
2.6% 4.9%
1.9% Many current employees do not 15.4%
8.3% have the skills required to use 24.7%
Stability and job security 31.4% the new technologies effectively 42.0%
34.0% 13.0%
24.4%
3.2% 4.3%
14.1% Integrating these technologies 16.0%
Personal growth opportunities 33.3% in our current work practices 36.2%
36.5% will be very difficult 30.7%
12.8%
12.9%
4.5%
Professional development 23.6% 1.2%
31.8% The number of different 4.9%
opportunities 35.7%
technologies employees 17.2%
4.5%
must use is increasing 50.9%
1.3% 25.8%
Ability to contribute 7.1%
29.0% 8.6%
to your organization 49.7%
12.9% Adopting the technologies 22.7%
will reduce the dependence 27.6%
5.7% on employee talent 34.4%
14.6% 6.8%
Ability to impact community/society 37.6%
30.6%
11.5% 0.6%
Adopting the technologies 6.8%
5.8% will help the organization attract 23.9%
Availability of career 21.8% and recruit new talent 46.0%
39.1%
related education and training 26.9%
22.7%
6.4%
Source: 31st Annual Study of Logistics and Transportation Trends Source: 31st Annual Study of Logistics and Transportation Trends
LOGISTICSMGMT.COM ME E T I N G T H E N E E D F O R TAL E N 5
EXCLUSIVE: Study of Logistics and Transportation Trends
31%
28% 29%
27%
20%
16%
12% 12% 7% 6% 13%
4% 3% 3% 3%
2%
interviews with industry professionals to help inform and benefits, logistics and transportation jobs were perceived as
shape this year’s study. being about the same as jobs in other industries.
The professionals were asked to share a question that The results suggest logistics and transportation jobs
they would most like to see included and answered in the offer advantages over jobs in other industries that can
survey. Every professional suggested some form of a ques- be used to attract and retain talent. Results also suggest
tion about the perceptions of logistics-related careers, sus- opportunities to improve or further differentiate logistics
pecting that negative perceptions of the industry would be and transportation jobs from jobs in other industries.
the major barriers to attracting top talent. It’s important to note the majority of respondents cur-
In response, each participant was asked to consider rently work in logistics related careers, and thus the per-
a series of job factors and then share their perception of ceptions are likely biased. This is especially noteworthy
how logistics and transportation jobs compared to jobs in considering most have experience in the industry and there
other industries for each of the factors. were not substantial differences between the positive and
Of the job factors considered, over 62% of respon- negative perceptions.
dents perceived the “ability to contribute to your orga- To help address some of this potential bias, respondents
nization” was “better” or “much better” for logistics and were also asked to indicate their level of agreement with
transportation jobs than jobs in other careers. Almost the following statement: “I am very likely to encourage
59% believed that logistics and transportation jobs my child (or child of a close friend) to pursue a career in
offered greater stability and job security. transportation or logistics.”
Respondents also perceived logistics and transporta- Only 19.38% of respondents strongly agreed they would
tion careers to be “better” or “much better” for a number encourage their child (or child of a friend) to pursue a
of other factors, including personal growth opportuni- career in transportation or logistics. Again, we acknowledge
ties; career progression; ability to affect society; pay; and there are likely factors influencing the responses that are
professional development opportunities. not accounted for in the survey.
Flexibility was the only factor respondents perceived as However, the results do suggest that there’s an oppor-
being “worse” or “much worse” for logistics and transporta- tunity—and need—to improve perceptions of logistics
tion jobs (48.7%). For the remaining three factors, avail- and transportation jobs and help make the industry more
ability of education and training, defined career paths, and attractive to an increasingly competitive job market.
tion is far more complex. How people Source: 31st Annual Study of Logistics and Transportation Trends
think about work is also changing to
a “what I do” perspective instead of a source of identity Logistics and supply chain careers offer stable employ-
and “who I am.” These shifts have significant implica- ment, enticing pay, and opportunities for personal growth
tions for employers, and how we do and define work and development.
needs to be re-evaluated. Unfortunately, the industry still struggles to attract the
Talent strategies need to be more employee-centric needed talent and when asked, only 19% of survey respon-
and allow for the flexibility and work-life balance that dents indicated that they would even encourage their
employees value. child to pursue a career in logistics.
As we’re finding, few industries offer the same career To tackle the talent threat, the industry must confront
opportunities as logistics and supply chain. Professionals negative perceptions and work to enhance the appeal of
can opt to work in a variety of environments and industries. logistics and supply chain-related careers. •
LOGISTICSMGMT.COM ME E T I N G T H E N E E D F O R TAL E N 7