It seems there is no end of news items forecasting
difficult months ahead for industry and
consumers. The weakening U.S. dollar, escalating
labour shortages and rising fuel prices are
all putting significant pressure on supply chain
activities. Now add to that some of the most brutal
winter conditions areas of the country have seen in
decades, and it’s safe to say that logistics operators
have their work cut out for them.
Margins continue to erode as the cost of doing
business increases. Delays are pretty much the
norm as major gateways deal with higher traffic
volumes and freight forwarders have to cope with
tougher legislation requirements. And everyone is
sharpening their pencils to get leaner and meaner
when it comes to their supply chain processes.
It’s not all bad news. Challenging times can
also be a breeding ground for innovation. Whether
talking technology, business processes or people,
logistics operations are now taking a good, long
look at their practices from end to end. Industry
associations for their part are putting every effort
into encouraging collaboration among partners, as
well as recruitment and training activities.
There are some great strides being made in cost
cutting and efficiency. Automation is making it
easier and less costly to manage the paperwork
needed to get goods from point A to point B.
Online services not only simplify and streamline
processes, they eliminate the chances of human
error and costly delays.
More and more processes, from inventory management
to scheduling, are being integrated into
warehouse management to ensure that everyone is
on the same page – including customers. RFID tagging
and satellite tracking systems let everyone
know what shipments are where at any given time.
That kind of detailed information means more efficient
routing, lower fuel costs and delays, and ultimately,
better customer service.
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Businesses are also finding more efficiency through the railways and the waterways. Consolidating shipments through these channels means higher volumes per shipment, less border crossing and less fuel consumption.
All that innovation is also driving a demand for different skill sets. Today's logistics specialist must be a business manager, a marketing expert, a technology wizard and a human resources manager all rolled into one. While the folks at the top of the corporate ladder can fill these shoes, the question remains, where will these people come from in the future?
Given the labour shortages across all industry sectors, there are only so many professionals up for grabs. Everyone is chasing the same talent. For new entrants to the job market, supply chain is not always the first choice.
Of course seasoned supply chain professionals know otherwise. It's a dynamic, challenging industry that has a lot to offer potential applicants. So how does one get the message out? And more importantly, how do you nurture and retain the talent you do manage to bring into the fold? It's all about finding the talent you need; creating an inclusive environment once you hire them; and making sure they don't abandon ship the minute a better offer comes along.
There is no single answer for how to do it, since every operation is different in terms of management style, training programs, customer base and size. But the bottom line is, no matter what technology or process you improve, it's the people factor that will count the most in the long run.
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Marc Duhamel is President and Publisher of Logistics Magazine.
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