Having trouble finding the right people to fill logistics and supply chain positions? You might be going about it wrong. Here's how to find what you're looking for.
Contributing Editor Toby Gooley is a writer and editor specializing in supply chain, logistics, and material handling, and a lecturer at MIT's Center for Transportation & Logistics. She previously was Senior Editor at DC VELOCITY and Editor of DCV's sister publication, CSCMP's Supply Chain Quarterly. Prior to joining AGiLE Business Media in 2007, she spent 20 years at Logistics Management magazine as Managing Editor and Senior Editor covering international trade and transportation. Prior to that she was an export traffic manager for 10 years. She holds a B.A. in Asian Studies from Cornell University.
Every year, at the Council of Supply Chain Management Professionals' (CSCMP) Annual Global Conference, there are one or two concerns that seem to be on every attendee's mind. At the 2013 conference, the hot-button issue was talent. At educational sessions, in hallway conversations, even over breakfast and lunch, complete strangers engaged in discussions about how to recruit, train, develop, and retain both new and experienced logistics and supply chain professionals.
All of those topics are interrelated, and each deserves a lengthy article of its own. But let's start at the beginning, with the first step in the employment lifecycle: finding appropriate job candidates. According to SCM Talent Development: The Acquire Process, a new research report published by CSCMP and written by Brian Gibson of Auburn University along with Zac Williams, Sean Goffnet, and Robert Cook of Central Michigan University, this requires a two-step approach:
Assessing the position's responsibilities and, accurately and realistically, identifying the skills required to carry them out
Crafting effective communications about the position and employing appropriate recruiting methods.
That may sound straightforward, even obvious, but relatively few employers actually follow that process. Here's a look at what many companies are getting wrong, along with some recommendations on better ways to find qualified candidates.
IN SEARCH OF "THE PURPLE SQUIRREL"
Peruse a selection of logistics and supply chain job listings, particularly those for managerial and higher-level positions, and one thing will quickly stand out: Many companies are asking for the moon. Or, as Don Jacobson, president of Optimum Supply Chain Recruiters, puts it, "They're looking for what in my company we call the 'purple squirrel'—something that doesn't exist." These days, it's common to see job postings with excruciatingly specific descriptions of "must have" functional experience and expertise, personal characteristics, "soft" skills, product knowledge, educational experience, technical skills, and more, Jacobson says. The likely consequence of setting such exacting criteria is that very few people could possibly meet them.
A more realistic approach is to clarify which skills and experience are truly a "must have" and which could be classified as "desirable" or "preferred." Jacobson suggests considering candidates who have had exposure to, but not direct responsibility for, "desirable" or "preferred" areas, which are relevant to but not crucial for the job.
Pinpointing the necessary skills and experience should be a group exercise, say Gibson, Cook, et al. A best practice identified by their survey of more than 900 supply chain and human resources (HR) professionals: Assign specific HR people to supply chain management (SCM) and logistics, and have them work directly with hiring managers to develop job descriptions and postings. "This bolsters recruiters' knowledge of SCM talent requirements and ensures that candidates are recruited by people who can speak the language of SCM," the authors write.
Many companies make industry- or product-specific experience a "must have." But Jacobson advises being open-minded about a candidate from another industry who has all the right management skills, functional knowledge, and personal characteristics. He or she could not only be a perfect fit for the job but also bring valuable new perspectives and ideas to the table.
Finally, when it comes to figuring out what is really necessary to fill a position, don't limit your thinking to the individual job opening. "Assess your team's current skills and identify gaps, and use that to help determine what you need, not just for the specific position but for the organization or group," urged one respondent to the CSCMP survey. "Who do we have and what do we need, not just now but in the future?"
GETTING THE WORD OUT
Once you've come up with a realistic, accurate picture of the skills and experience required, the question then becomes how to let qualified candidates know about the job opening. Employers today use a variety of methods: Some rely on electronic platforms, such as companies' own websites, general career websites, specialized supply chain and logistics career websites, and social media. Others use more traditional, face-to-face communication through such means as executive recruiters, professional networking, internship and co-op programs, and collaborating with academic institutions.
Online job postings are often the first, and possibly only, place many job seekers today look for open positions. Each of the platforms mentioned above has its advantages. For example, companies can design the careers section of their own websites however they like, and they have free rein to promote the company and its culture. General job boards like Monster.com and Careerbuilder.com are household names and attract large volumes of both postings and site traffic. Social media can be a good way to reach a young, entry-level audience. Specialized job boards have an advantage because they specifically target a logistics and supply chain audience.
There are potential disadvantages to electronic methods as well. It can be tedious for job seekers to scan a large number of company-specific websites; unless they are targeting specific companies as potential employers, good candidates may not check a corporate site regularly. Social media platforms are unlikely to reach the older candidates who would be qualified for higher-level positions. General job boards are highly automated, and keyword searches will pull up any listing with that word in the description, not just in the job title. A brief search on two of the largest such sites using the term "logistics" turned up hundreds of appropriate jobs as well as postings for such positions as "associate manager, surgical training and events" and "director, marine electronics—power propulsion" because the word "logistics" appeared somewhere in the job description.
Don Firth, president and co-founder of JobsInLogistics.com, the first and largest of the specialized job boards, points out another potential drawback of general listings. "If you advertise a logistics job on [a general career website], almost everyone will apply to it. But nobody goes to JobsInLogistics.com unless they're in logistics," he says. According to Firth, the site has more than 30,000 registered employers, who pay to list their open positions and have rights to search the résumé database. The company, which also owns the JobsInTrucks.com job board, has more than 900,000 résumés in its logistics database; more than 250,000 individual job seekers in the United States peruse the logistics listings each month.
Online posting may be popular, but many companies are not getting as much out of them as they could. To get the right candidates to respond to an online job posting, Firth says, employers should make sure the positions are correctly classified and that the descriptions include multiple key words that could apply to the position. "They should be aware that what one person might call a logistics position, someone coming out of distribution might call a different name and search with a different key word," he says. He also advises employers to limit job descriptions to a few specific, brief points rather than long, narrative paragraphs, so candidates can quickly tell whether the job would be appropriate for them; the "nice to know" details can be shared with applicants later. And be sure to include a brief "sales pitch" for the employer. "We suggest looking at it from the candidate's point of view. ... You want to indicate the benefits of working for you," he says.
While popular, online job postings are not as effective as some of the other methods employed by respondents to CSCMP's survey. When asked to rate the effectiveness of their recruiting methods, respondents ranked the method they used most often—job postings on their companies' own websites—next to last, just above newspaper ads. The most effective methods, they said, are those that require active pursuit of candidates and personal involvement, such as executive recruiters, internship and co-op programs, university faculty referrals, networking, and employee referral programs. (See Exhibit 1.)
Why are these "old-fashioned" methods so effective? Because they allow employers to get to know a candidate as a person, not just a résumé. Internships, for example, let employers observe and assess prospective employees' capabilities and "fit" with the company. Consistent engagement with university logistics and supply chain management programs gives employers an opportunity to "get your organization out in front of the emerging talent base," said one respondent to the CSCMP survey. Professors and college placement centers can also help match jobs with appropriate students and alumni.
Networking with peers and supply chain partners, encouraging employees to refer candidates, and working with recruiters can also be fruitful. Recruiters with a strong background in logistics and supply chain operations, for example, will understand a position's responsibilities and requirements, says Jacobson, who worked in the field before becoming a recruiter. The personal touch is important, he adds. "We know how to find and talk to those that are not actively seeking a new position, and we can introduce them to an opportunity that would be a good fit for them. We can make sure they are a good fit for the company, both in experience and personality."
The research findings and advice offered by Firth, Jacobson, and others involved in logistics and supply chain recruiting provide a useful guideline for managers worried about finding the right talent for increasingly complex and demanding jobs. A program that combines realistic requirements for candidates with both online and proactive recruiting efforts will lead to success in acquiring the best talent in today's marketplace.
Editor's note: SCM Talent Development: The Acquire Process is available from the Council of Supply Chain Management Professionals for $29.95 ($19.95 for members). CSCMP has published two additional reports in its series on best practices in talent development: The Develop Process and The Advance Process. More information is available at cscmp.org under "Resources & Research."
Most of the apparel sold in North America is manufactured in Asia, meaning the finished goods travel long distances to reach end markets, with all the associated greenhouse gas emissions. On top of that, apparel manufacturing itself requires a significant amount of energy, water, and raw materials like cotton. Overall, the production of apparel is responsible for about 2% of the world’s total greenhouse gas emissions, according to a report titled
Taking Stock of Progress Against the Roadmap to Net Zeroby the Apparel Impact Institute. Founded in 2017, the Apparel Impact Institute is an organization dedicated to identifying, funding, and then scaling solutions aimed at reducing the carbon emissions and other environmental impacts of the apparel and textile industries.
The author of this annual study is researcher and consultant Michael Sadowski. He wrote the first report in 2021 as well as the latest edition, which was released earlier this year. Sadowski, who is also executive director of the environmental nonprofit
The Circulate Initiative, recently joined DC Velocity Group Editorial Director David Maloney on an episode of the “Logistics Matters” podcast to discuss the key findings of the research, what companies are doing to reduce emissions, and the progress they’ve made since the first report was issued.
A: While companies in the apparel industry can set their own sustainability targets, we realized there was a need to give them a blueprint for actually reducing emissions. And so, we produced the first report back in 2021, where we laid out the emissions from the sector, based on the best estimates [we could make using] data from various sources. It gives companies and the sector a blueprint for what we collectively need to do to drive toward the ambitious reduction [target] of staying within a 1.5 degrees Celsius pathway. That was the first report, and then we committed to refresh the analysis on an annual basis. The second report was published last year, and the third report came out in May of this year.
Q: What were some of the key findings of your research?
A: We found that about half of the emissions in the sector come from Tier Two, which is essentially textile production. That includes the knitting, weaving, dyeing, and finishing of fabric, which together account for over half of the total emissions. That was a really important finding, and it allows us to focus our attention on the interventions that can drive those emissions down.
Raw material production accounts for another quarter of emissions. That includes cotton farming, extracting gas and oil from the ground to make synthetics, and things like that. So we now have a really keen understanding of the source of our industry’s emissions.
Q: Your report mentions that the apparel industry is responsible for about 2% of global emissions. Is that an accurate statistic?
A: That’s our best estimate of the total emissions [generated by] the apparel sector. Some other reports on the industry have apparel at up to 8% of global emissions. And there is a commonly misquoted number in the media that it’s 10%. From my perspective, I think the best estimate is somewhere under 2%.
We know that globally, humankind needs to reduce emissions by roughly half by 2030 and reach net zero by 2050 to hit international goals. [Reaching that target will require the involvement of] every facet of the global economy and every aspect of the apparel sector—transportation, material production, manufacturing, cotton farming. Through our work and that of others, I think the apparel sector understands what has to happen. We have highlighted examples of how companies are taking action to reduce emissions in the roadmap reports.
Q: What are some of those actions the industry can take to reduce emissions?
A: I think one of the positive developments since we wrote the first report is that we’re seeing companies really focus on the most impactful areas. We see companies diving deep on thermal energy, for example. With respect to Tier Two, we [focus] a lot of attention on things like ocean freight versus air. There’s a rule of thumb I’ve heard that indicates air freight is about 10 times the cost [of ocean] and also produces 10 times more greenhouse gas emissions.
There is money available to invest in sustainability efforts. It’s really exciting to see the funding that’s coming through for AI [artificial intelligence] and to see that individual companies, such as H&M and Lululemon, are investing in real solutions in their supply chains. I think a lot of concrete actions are being taken.
And yet we know that reducing emissions by half on an absolute basis by 2030 is a monumental undertaking. So I don’t want to be overly optimistic, because I think we have a lot of work to do. But I do think we’ve got some amazing progress happening.
Q: You mentioned several companies that are starting to address their emissions. Is that a result of their being more aware of the emissions they generate? Have you seen progress made since the first report came out in 2021?
A: Yes. When we published the first roadmap back in 2021, our statistics showed that only about 12 companies had met the criteria [for setting] science-based targets. In 2024, the number of apparel, textile, and footwear companies that have set targets or have commitments to set targets is close to 500. It’s an enormous increase. I think they see the urgency more than other sectors do.
We have companies that have been working at sustainability for quite a long time. I think the apparel sector has developed a keen understanding of the impacts of climate change. You can see the impacts of flooding, drought, heat, and other things happening in places like Bangladesh and Pakistan and India. If you’re a brand or a manufacturer and you have operations and supply chains in these places, I think you understand what the future will look like if we don’t significantly reduce emissions.
Q: There are different categories of emission levels, depending on the role within the supply chain. Scope 1 are “direct” emissions under the reporting company’s control. For apparel, this might be the production of raw materials or the manufacturing of the finished product. Scope 2 covers “indirect” emissions from purchased energy, such as electricity used in these processes. Scope 3 emissions are harder to track, as they include emissions from supply chain partners both upstream and downstream.
Now companies are finding there are legislative efforts around the world that could soon require them to track and report on all these emissions, including emissions produced by their partners’ supply chains. Does this mean that companies now need to be more aware of not only what greenhouse gas emissions they produce, but also what their partners produce?
A: That’s right. Just to put this into context, if you’re a brand like an Adidas or a Gap, you still have to consider the Scope 3 emissions. In particular, there are the so-called “purchased goods and services,” which refers to all of the embedded emissions in your products, from farming cotton to knitting yarn to making fabric. Those “purchased goods and services” generally account for well above 80% of the total emissions associated with a product. It’s by far the most significant portion of your emissions.
Leading companies have begun measuring and taking action on Scope 3 emissions because of regulatory developments in Europe and, to some extent now, in California. I do think this is just a further tailwind for the work that the industry is doing.
I also think it will definitely ratchet up the quality requirements of Scope 3 data, which is not yet where we’d all like it to be. Companies are working to improve that data, but I think the regulatory push will make the quality side increasingly important.
Q: Overall, do you think the work being done by the Apparel Impact Institute will help reduce greenhouse gas emissions within the industry?
A: When we started this back in 2020, we were at a place where companies were setting targets and knew their intended destination, but what they needed was a blueprint for how to get there. And so, the roadmap [provided] this blueprint and identified six key things that the sector needed to do—from using more sustainable materials to deploying renewable electricity in the supply chain.
Decarbonizing any sector, whether it’s transportation, chemicals, or automotive, requires investment. The Apparel Impact Institute is bringing collective investment, which is so critical. I’m really optimistic about what they’re doing. They have taken a data-driven, evidence-based approach, so they know where the emissions are and they know what the needed interventions are. And they’ve got the industry behind them in doing that.
The global air cargo market’s hot summer of double-digit demand growth continued in August with average spot rates showing their largest year-on-year jump with a 24% increase, according to the latest weekly analysis by Xeneta.
Xeneta cited two reasons to explain the increase. First, Global average air cargo spot rates reached $2.68 per kg in August due to continuing supply and demand imbalance. That came as August's global cargo supply grew at its slowest ratio in 2024 to-date at 2% year-on-year, while global cargo demand continued its double-digit growth, rising +11%.
The second reason for higher rates was an ocean-to-air shift in freight volumes due to Red Sea disruptions and e-commerce demand.
Those factors could soon be amplified as e-commerce shows continued strong growth approaching the hotly anticipated winter peak season. E-commerce and low-value goods exports from China in the first seven months of 2024 increased 30% year-on-year, including shipments to Europe and the US rising 38% and 30% growth respectively, Xeneta said.
“Typically, air cargo market performance in August tends to follow the July trend. But another month of double-digit demand growth and the strongest rate growths of the year means there was definitely no summer slack season in 2024,” Niall van de Wouw, Xeneta’s chief airfreight officer, said in a release.
“Rates we saw bottoming out in late July started picking up again in mid-August. This is too short a period to call a season. This has been a busy summer, and now we’re at the threshold of Q4, it will be interesting to see what will happen and if all the anticipation of a red-hot peak season materializes,” van de Wouw said.
“Unrelenting labor shortages and wage inflation, accompanied by increasing consumer demand, are driving rapid market adoption of autonomous technologies in manufacturing, warehousing, and logistics,” Seegrid CEO and President Joe Pajer said in a release. “This is particularly true in the area of palletized material flows; areas that are addressed by Seegrid’s autonomous tow tractors and lift trucks. This segment of the market is just now ‘coming into its own,’ and Seegrid is a clear leader.”
According to Pajer, Seegrid’s strength in the sector is due to several new technologies it has released in the past six months. They include: Sliding Scale Autonomy, which provides both flexibility and predictability in autonomous navigation and manipulation; Enhanced Pallet and Payload Detection, which enables reliable recognition and manipulation of a broad range of payloads; and the planned launch of its CR1 autonomous lift truck model later this year.
Seegrid’s CR1 unit offers a 15-foot lift height, 4,000-pound load capacity, and a top speed of 5 mph. In comparison, its existing autonomous lift truck model, the RS1, supports six-foot lift height, 3,500 pound capacity, and the same top speed.
The “series D” investment round was funded by existing lead investors Giant Eagle Incorporated and G2 Venture Partners, as well as smaller investments from other existing shareholders.
The report cites data showing that there are approximately 1.7 million workers missing from the post-pandemic workforce and that 38% of small firms are unable to fill open positions. At the same time, the “skills gap” in the workforce is accelerating as automation and AI create significant shifts in how work is performed.
That information comes from the “2024 Labor Day Report” released by Littler’s Workplace Policy Institute (WPI), the firm’s government relations and public policy arm.
“We continue to see a labor shortage and an urgent need to upskill the current workforce to adapt to the new world of work,” said Michael Lotito, Littler shareholder and co-chair of WPI. “As corporate executives and business leaders look to the future, they are focused on realizing the many benefits of AI to streamline operations and guide strategic decision-making, while cultivating a talent pipeline that can support this growth.”
But while the need is clear, solutions may be complicated by public policy changes such as the upcoming U.S. general election and the proliferation of employment-related legislation at the state and local levels amid Congressional gridlock.
“We are heading into a contentious election that has already proven to be unpredictable and is poised to create even more uncertainty for employers, no matter the outcome,” Shannon Meade, WPI’s executive director, said in a release. “At the same time, the growing patchwork of state and local requirements across the U.S. is exacerbating compliance challenges for companies. That, coupled with looming changes following several Supreme Court decisions that have the potential to upend rulemaking, gives C-suite executives much to contend with in planning their workforce-related strategies.”
Stax Engineering, the venture-backed startup that provides smokestack emissions reduction services for maritime ships, will service all vessels from Toyota Motor North America Inc. visiting the Toyota Berth at the Port of Long Beach, according to a new five-year deal announced today.
Beginning in 2025 to coincide with new California Air Resources Board (CARB) standards, STAX will become the first and only emissions control provider to service roll-on/roll-off (ro-ros) vessels in the state of California, the company said.
Stax has rapidly grown since its launch in the first quarter of this year, supported in part by a $40 million funding round from investors, announced in July. It now holds exclusive service agreements at California ports including Los Angeles, Long Beach, Hueneme, Benicia, Richmond, and Oakland. The firm has also partnered with individual companies like NYK Line, Hyundai GLOVIS, Equilon Enterprises LLC d/b/a Shell Oil Products US (Shell), and now Toyota.
Stax says it offers an alternative to shore power with land- and barge-based, mobile emissions capture and control technology for shipping terminal and fleet operators without the need for retrofits.
In the case of this latest deal, the Toyota Long Beach Vehicle Distribution Center imports about 200,000 vehicles each year on ro-ro vessels. Stax will keep those ships green with its flexible exhaust capture system, which attaches to all vessel classes without modification to remove 99% of emitted particulate matter (PM) and 95% of emitted oxides of nitrogen (NOx). Over the lifetime of this new agreement with Toyota, Stax estimated the service will account for approximately 3,700 hours and more than 47 tons of emissions controlled.
“We set out to provide an emissions capture and control solution that was reliable, easily accessible, and cost-effective. As we begin to service Toyota, we’re confident that we can meet the needs of the full breadth of the maritime industry, furthering our impact on the local air quality, public health, and environment,” Mike Walker, CEO of Stax, said in a release. “Continuing to establish strong partnerships will help build momentum for and trust in our technology as we expand beyond the state of California.”