You're determined to hire the best and you know it's going to cost you there will be advertising expenses, wages and benefits, travel and relocation costs, and maybe even executive recruiters' fees. And that's not the half of it.
Don Jacobson is the president of Optimum Supply Chain Recruiters, a recruiting organization that specializes in the placement of management personnel in the logistics field on a nationwide basis. You can reach him by calling Optimum SCR at (800) 300-7609 or by visiting the firm's Web site, www.OptimumSCR.com.
Shelley Safian is vice president of marketing for Optimum Supply Chain Recruiters, a recruiting organization that specializes in the placement of management personnel in the logistics field on a nationwide basis. You can reach her by calling Optimum SCR at (800) 300-7609 or by visiting the firm's Web site, www.OptimumSCR.com.
You're determined to hire the best and you know it's going to cost you—there will be advertising expenses, wages and benefits, travel and relocation costs, and maybe even executive recruiters' fees. And that's not the half of it. Although few managers realize it, there are also "hidden costs"—administrative expenses associated with the process—that can pile up quickly. Dollar amounts vary depending on the geographic region and type of position, of course, but a typical company can expect to incur some or all of the following:
Strategic planning costs. Yes, it will take you away from your daily responsibilities, but a crucial part of the process is stepping back to consider what kind of person you need to hire. That means setting aside time to figure out exactly what you want from this new staff member and to articulate the qualities, characteristics, skills and traits you're looking for. Resist the temptation to rush through this step. You can't pick the best available candidate if you don't know what you want and need.
Advertising costs. Aside from the obvious costs—fees for placing an ad in the local newspaper or on the hottest online job site—there are quite a few hidden expenses. At a minimum, there's the time it takes someone—whether it's you or someone from human resources—to write and place that ad.
Costs incurred in receiving the resumes. If you're not using one of those expensive recruiting software packages, someone has to wade through the e-mail responses and print out the resumes. As anyone who's tried to hire in the last few years will tell you, that could be a lot of time and paper.
Costs incurred in sorting the resumes. Someone has to screen the resumes to weed out the candidates who don't meet the minimum qualifications and sort the remainder into piles labeled "Maybe" and "Definitely Consider." That alone could take days. It's not unusual to get more than 500 responses to a job opening posted on a popular Internet job board (although at least 400 of them will most likely prove to be a total waste of time).
Interview costs. Once you've culled the top candidates from the pile of resumes, it's time for telephone screening. That means calling each candidate, setting up an appointment and conducting the first round of phone interviews. You can conservatively figure each interview will take 20 minutes of your time.
Costs of skills assessment. These are the costs you'll incur if you decide to conduct any testing to make sure the candidate meets the position's criteria or will fit into the company's culture.
Costs of conducting reference and background checks. It sounds quick and easy, but checking the references provided by your finalists will be anything but—it takes time to try to break through the legal wall of "Yes, she worked here on those dates. That's all I'm permitted to say." It's also wise to budget for multistate background checks to assure that candidates have represented their credentials accurately and don't have criminal records.
Costs incurred in negotiating the salary and terms. When hiring for upper-level positions, expect to spend time hammering out the terms: the exact salary, benefits such as moving expenses and other details.
Costs of sending rejection letters. Though it's not required, sending out rejection letters shows consideration for the people who took the time to apply for the job. You never know, you might want one of them to come work for you someday.You might even end up soliciting some of them as customers.
Supply chain planning (SCP) leaders working on transformation efforts are focused on two major high-impact technology trends, including composite AI and supply chain data governance, according to a study from Gartner, Inc.
"SCP leaders are in the process of developing transformation roadmaps that will prioritize delivering on advanced decision intelligence and automated decision making," Eva Dawkins, Director Analyst in Gartner’s Supply Chain practice, said in a release. "Composite AI, which is the combined application of different AI techniques to improve learning efficiency, will drive the optimization and automation of many planning activities at scale, while supply chain data governance is the foundational key for digital transformation.”
Their pursuit of those roadmaps is often complicated by frequent disruptions and the rapid pace of technological innovation. But Gartner says those leaders can accelerate the realized value of technology investments by facilitating a shift from IT-led to business-led digital leadership, with SCP leaders taking ownership of multidisciplinary teams to advance business operations, channels and products.
“A sound data governance strategy supports advanced technologies, such as composite AI, while also facilitating collaboration throughout the supply chain technology ecosystem,” said Dawkins. “Without attention to data governance, SCP leaders will likely struggle to achieve their expected ROI on key technology investments.”
The U.S. manufacturing sector has become an engine of new job creation over the past four years, thanks to a combination of federal incentives and mega-trends like nearshoring and the clean energy boom, according to the industrial real estate firm Savills.
While those manufacturing announcements have softened slightly from their 2022 high point, they remain historically elevated. And the sector’s growth outlook remains strong, regardless of the results of the November U.S. presidential election, the company said in its September “Savills Manufacturing Report.”
From 2021 to 2024, over 995,000 new U.S. manufacturing jobs were announced, with two thirds in advanced sectors like electric vehicles (EVs) and batteries, semiconductors, clean energy, and biomanufacturing. After peaking at 350,000 news jobs in 2022, the growth pace has slowed, with 2024 expected to see just over half that number.
But the ingredients are in place to sustain the hot temperature of American manufacturing expansion in 2025 and beyond, the company said. According to Savills, that’s because the U.S. manufacturing revival is fueled by $910 billion in federal incentives—including the Inflation Reduction Act, CHIPS and Science Act, and Infrastructure Investment and Jobs Act—much of which has not yet been spent. Domestic production is also expected to be boosted by new tariffs, including a planned rise in semiconductor tariffs to 50% in 2025 and an increase in tariffs on Chinese EVs from 25% to 100%.
Certain geographical regions will see greater manufacturing growth than others, since just eight states account for 47% of new manufacturing jobs and over 6.3 billion square feet of industrial space, with 197 million more square feet under development. They are: Arizona, Georgia, Michigan, Ohio, North Carolina, South Carolina, Texas, and Tennessee.
Across the border, Mexico’s manufacturing sector has also seen “revolutionary” growth driven by nearshoring strategies targeting U.S. markets and offering lower-cost labor, with a workforce that is now even cheaper than in China. Over the past four years, that country has launched 27 new plants, each creating over 500 jobs. Unlike the U.S. focus on tech manufacturing, Mexico focuses on traditional sectors such as automative parts, appliances, and consumer goods.
Looking at the future, the U.S. manufacturing sector’s growth outlook remains strong, regardless of the results of November’s presidential election, Savills said. That’s because both candidates favor protectionist trade policies, and since significant change to federal incentives would require a single party to control both the legislative and executive branches. Rather than relying on changes in political leadership, future growth of U.S. manufacturing now hinges on finding affordable, reliable power amid increasing competition between manufacturing sites and data centers, Savills said.
The British logistics robot vendor Dexory this week said it has raised $80 million in venture funding to support an expansion of its artificial intelligence (AI) powered features, grow its global team, and accelerate the deployment of its autonomous robots.
A “significant focus” continues to be on expanding across the U.S. market, where Dexory is live with customers in seven states and last month opened a U.S. headquarters in Nashville. The Series B will also enhance development and production facilities at its UK headquarters, the firm said.
The “series B” funding round was led by DTCP, with participation from Latitude Ventures, Wave-X and Bootstrap Europe, along with existing investors Atomico, Lakestar, Capnamic, and several angels from the logistics industry. With the close of the round, Dexory has now raised $120 million over the past three years.
Dexory says its product, DexoryView, provides real-time visibility across warehouses of any size through its autonomous mobile robots and AI. The rolling bots use sensor and image data and continuous data collection to perform rapid warehouse scans and create digital twins of warehouse spaces, allowing for optimized performance and future scenario simulations.
Originally announced in September, the move will allow Deutsche Bahn to “fully focus on restructuring the rail infrastructure in Germany and providing climate-friendly passenger and freight transport operations in Germany and Europe,” Werner Gatzer, Chairman of the DB Supervisory Board, said in a release.
For its purchase price, DSV gains an organization with around 72,700 employees at over 1,850 locations. The new owner says it plans to investment around one billion euros in coming years to promote additional growth in German operations. Together, DSV and Schenker will have a combined workforce of approximately 147,000 employees in more than 90 countries, earning pro forma revenue of approximately $43.3 billion (based on 2023 numbers), DSV said.
After removing that unit, Deutsche Bahn retains its core business called the “Systemverbund Bahn,” which includes passenger transport activities in Germany, rail freight activities, operational service units, and railroad infrastructure companies. The DB Group, headquartered in Berlin, employs around 340,000 people.
“We have set clear goals to structurally modernize Deutsche Bahn in the areas of infrastructure, operations and profitability and focus on the core business. The proceeds from the sale will significantly reduce DB’s debt and thus make an important contribution to the financial stability of the DB Group. At the same time, DB Schenker will gain a strong strategic owner in DSV,” Deutsche Bahn CEO Richard Lutz said in a release.
Transportation industry veteran Anne Reinke will become president & CEO of trade group the Intermodal Association of North America (IANA) at the end of the year, stepping into the position from her previous post leading third party logistics (3PL) trade group the Transportation Intermediaries Association (TIA), both organizations said today.
Meanwhile, TIA today announced that insider Christopher Burroughs would fill Reinke’s shoes as president & CEO. Burroughs has been with TIA for 13 years, most recently as its vice president of Government Affairs for the past six years, during which time he oversaw all legislative and regulatory efforts before Congress and the federal agencies.
Before her four years leading TIA, Reinke spent two years as Deputy Assistant Secretary with the U.S. Department of Transportation and 16 years with CSX Corporation.