The transport and logistics industry is pivotal to all our lives and constantly needs to change and adapt to remain competitive. The pandemic has accelerated some trends, it has also brought to light new challenges and opportunities in the supply chain. Companies in the sector now have to adapt to new market requirements.
Customer expectations have greatly increased. They want their shipments faster, at a lower price and with as much transparency as possible. The ability to track orders online, to know exactly where they are at any time and when they will be delivered is becoming a must and many companies will have to invest in their digital fitness to be able to deliver this kind of service. 3PLs and 4PLs will need to digitise at a fast pace to future proof their operations.
to reduce the workload of warehouse staff and exploiting data analytics to run more efficient Technology has a huge role to play in the transformation of the sector. Most logistics providers will need to set a clear digital strategy in order to harness the benefits of new platforms and systems. Being able to automate further supply chains will be critical.
Supply chains will also have to become more agile. The limits of globalisation were crystallised when the pandemic shut down the world and more recently with the conflict in Ukraine. The global integration of supply chains has created an interdependence that is now causing problems. Finding local solutions to speed up fulfilments, whilst keeping costs down, will be a challenge for many providers. With customers expecting next day or even same day delivery, rethinking the delivery network and last mile services will be key. Again, technology will be a great tool to help logistics companies forecasting inventory and delivery. Supply Chain Management technology can provide insight using data and analytics and to help with planning.
The introduction of cloud technology and autonomous vehicles is likely to have a huge impact on the industry too. New business models should become possible. There is quite a lot of noise about the “physical internet”, enhanced connectivity across the logistics sector could speed up its emergence. Multiple innovations are starting to address the automation of last-mile deliveries of packages. Amazon has started to experiment the use of drones earlier this year and Google is also testing self-driving lockers in the US.
The push on automation and technology is essential, however, the industry still relies on drivers to move goods around the world. They are a crucial part of the activity and companies need to address the shortage of skills. In addition to putting together effective retention policies, the industry will need to find new ways to attract candidates.
Another key challenge for the industry is reducing their carbon emissions. Companies need to invest in sustainable solutions to become greener. Sustainability is bringing new challenges, options such as using electric vehicles and finding environmentally friendly packaging will have to be taken into consideration.
Hiring trends seen by Partner Executive
We have seen a greater emphasis from firms now ensuring that their supply chains are fit for purpose as for many this is holding back their business growth. This has been particularly noticeable in the automotive industry where the lead time to acquiring a new car has increased significantly.
This issue doesn’t just sit with Supply Chain Directors but with their CFOs as material costs have been rising, in particular Energy costs, and therefore the FP&A functions in an organisation are ever more critical. This has brought about increased hiring within the FP&A arena as firms look to strengthen their budgeting and planning. This has been particularly noticeable in the last 12 months and has also gone hand in hand with improved financial reporting. Finance transformation projects that were put on hold due to the pandemic are now back on the agenda of CFOs as they look to provide the business with clearer financial information. The demand for specialists in this area is also increasing and firms are finding themselves competing for the best talent.
Logistics is becoming ever more robotic and with the advent of autonomous vehicles on the horizon, workforce planning is becoming a greater challenge as firms adapt to the new technology and require different skillsets in human capital.
The next 12-24 months will see continued advancement in transport and logistics and will require firms to adapt and be innovative in their workforce planning.
If you have any comments or questions, please contact Partner Executive on 0203 178 4996.
