Demand Outstrips Supply For Supply Chain Talent
Demand for skills worker or talent is at an all-time high, as more businesses recognise the importance of supply chain management to their success. Supply chain talent is in short supply, causing major concerns for businesses across all industries. Global supply chain managers are dealing with a critical supply-and-demand imbalance. If this trend continues, businesses around the world may struggle to meet demand for their products.
Consider the situation in the United States, which has a large number of educational institutions and industry associations that provide degree programmes and training in logistics and supply chain management. Companies, however, continue to have difficulty filling both senior-level supply chain management positions and skilled manpower. There are six jobs for each qualified supply chain manager, according to some surveys. The shortage of skilled labour is also felt. The country's truck driver shortage is already driving up transportation costs and limiting available capacity. At the same time, warehouse labour costs are rising as companies struggle to find qualified warehouse workers.
Developing Countries' Talent Shortage
The global talent shortage is being felt in almost every region and industry sector. The problem is especially acute in developing countries, where companies struggle to find employee with the right combination of local market knowledge and supply chain expertise. For instance, in China the Chinese Academy of Sciences observed in 2007 that it is difficult for both domestic and foreign enterprises to recruit senior supply chain managers and well-trained manpowers / workers. As a way to alleviate the shortage, the report encouraged universities to develop more specialised logistics courses. However, seven years later, the problem is far from resolved. China is severely lacking in supply chain talent. Companies should think about hiring outside help to find and train local employees to fill supply chain gaps in China.
Local and international companies should be particularly concerned about the lack of supply chain talent in emerging economies. Future growth for many of the latter is dependent on increased sales in developing markets. These markets, however, will not be able to expand unless the workforce in those countries has the necessary skills to get goods into the hands of customers.
Several Factors that lead to skilled manpower shortage
There is no single cause for the growing scarcity of supply chain talent. Instead, the reasons vary and are sometimes related to local circumstances. Here are a few examples that are frequently used:
Demographics: For many developed countries, such as those in Western Europe, the United States, and Australia, simple demographics are part of the problem. As baby boomers retire, many businesses are discovering that they do not have a large enough pool of experienced managers to replace them.
Changing Skill Set: As experienced leaders retire, businesses seek replacements with a broader skill set than those who came before them. Because technology is becoming more important in the field, candidates – even for skilled labour positions like forklift drivers, must have more technical and analytical skills. Similarly, businesses are looking for people with specific skills.
Cost-cutting Measures: During the recent economic downturn, companies used cost-cutting measures, which exacerbated the shortage. Many businesses reduced or eliminated their training and development programmes and reduced or eliminated their headcount. As a result, workers have lacked the resources necessary to develop the skills needed to address today's supply chain challenges.
Lack of Training Programs: There aren't enough schools, universities, and other institutions in developing countries that offer logistics and supply chain management courses.
The Solution
Surprisingly, there may be a simpler answer than you believe. Many businesses have discovered that they already have the employees they require, but they are being used inefficiently. When reviewing your available skill sets, keep an open mind and pay special attention to skills that may be transferrable. To counter for a shortfall of skilled workers, several businesses have begun to offer training to their current staff in order to adapt them to meet current vacancies. This can include in-house training where a qualified person shares their unique skills with others.
When labour shortages become a severe issue, it may be time to reconsider how you hire new personnel. Attracting and retaining people is an important part of expanding your workforce. Dealing with regular turnover can put employers under more stress and cost them more money to hire fresh faces. Employers must discover innovative strategies to attract and keep quality personnel to their organisation; otherwise, employing an experienced manpower recruitment agency will ensure businesses hire the correct individuals while also lowering turnover and the process of re-hiring.