Logistics Industry culture shift targets workforce shortage
A new world of work is emerging for the Logistics Industry. Gathering insights from over 80 members of the logistics industry, from operational roles to senior management, the Q3 CCLI report detailed a cultural shift in hiring and retention.
One of the most critical issues facing the logistics industry right now is workforce shortages. While automation and robotics are allowing teams to achieve higher output, simplify complex tasks, and remove manual paperwork — the need for skilled personnel will never be replaced.
The industry is continuing to grow in both size and value, and flow on-impacts from the global pandemic continue to impact day-to-day operations — including remaining workforce shortages.
The unprecedented nature of the pandemic highlighted the critical role of supply chain stability and flexibility in the logistics industry. However, it also brought with it border closures coupled with workforce restrictions, illness, and health precautionary measures that dwindled the workforce at a time when logistics operations were booming.
The wider impact of post-pandemic flow-on include rising labor and operational costs (rising fuel prices and warehouse rent among a few), changes in workforce preferences and accelerated retirement. These trends have coupled to change the workforce of our industry, driving companies to explore new avenues in terms of workforce attraction and retention.
The CartonCloud Logistics Index (CCLI) 2022 Q3 industry whitepaper found ongoing workforce shortages were driving businesses to think outside the box in terms of hiring.
Gathering insights from over 80 members of the logistics industry, from operational roles to senior management, the Q3 CCLI report detailed a strong cultural shift angled at boosting workforce recruitment and retention.
“What it means to work in logistics is changing. Our industry is changing, and while our bread and butter will continue to be the storage and movement of goods, the services and specialized roles supporting this are evolving,” said Mr Fletcher.
“We’re seeing a major shift in the attitudes and tactics surrounding hiring within our industry.
“Companies are working to become more attractive employers by offering flexible work arrangements, on-the-job training, higher pay structures, and career advancement, looking at their own company values and culture.”
Having more defined company values can not only be used to set employers apart from the pack, CartonCloud COO/ Head of North America Shaun Hagen explained.
Strong company values also provide an opportunity for employers to look at bringing in new skill sets, and offering their customers new services, like data analysis, sales and marketing.
“It may be that new logistics employment opportunities emerge as a result of the cultural shifts toward hiring,” Mr Hagen said.
“New members of the workforce will continue to diversify the skill sets held within companies, and the adoption of technology and software solutions will continue to reduce the load of manual tasks, allowing companies to invest in other areas for growth.”
The CCLI report showed adoption of technology is trending upward, driven by greater expectations from both customers and other industry partners for data capture and sharing.
“This is altering the landscape of hiring within the logistics workforce,” Mr Fletcher said.
“Higher tech adoption across the industry brings new roles for data analysis and may open up greater opportunities for hiring flexibility in terms of roles and hours. What’s more, companies using easy-to-operate technology are finding it easier to train and assign workloads within their workforce, which means they can expand their hiring beyond those with prior industry experience.”
CCLI respondents cited flexible hours, on-the-job training, healthy team dynamics, wage incentives, and appropriate benefits as some of the tactics they were using to attract and retain their staff.
The report gathered insights from over 80 members of the logistics industry, across all roles and operations, from Australia and North America.
“The CartonCloud Logistics Index allows us to track and understand the issues that are most important to industry members today, and also gives us the opportunity to provide valuable insights and data back to the industry,” Mr Hagen said.
“We believe in data-led decision-making to drive growth. It’s at the heart of what we do, creating technology that is both powerful and easy to use — based on the most important features logistics people need to grow their business.
“Providing data like this allows us to support industry members to explore their own decisions within an industry context, and grow from the insights shared by others.”
CartonCloud works closely with industry members to identify, track and predict the issues and opportunities facing logistics businesses today and in the future.
To find out more, download the full CartonCloud Logistics Index from our webiste, or contact the team at CartonCloud for more information on intuitive software systems, built for logistics people.
RJW Logistics Group, a logistics solutions provider (LSP) for consumer packaged goods (CPG) brands, has received a “strategic investment” from Boston-based private equity firm Berkshire partners, and now plans to drive future innovations and expand its geographic reach, the Woodridge, Illinois-based company said Tuesday.
Terms of the deal were not disclosed, but the company said that CEO Kevin Williamson and other members of RJW management will continue to be “significant investors” in the company, while private equity firm Mason Wells, which invested in RJW in 2019, will maintain a minority investment position.
RJW is an asset-based transportation, logistics, and warehousing provider, operating more than 7.3 million square feet of consolidation warehouse space in the transportation hubs of Chicago and Dallas and employing 1,900 people. RJW says it partners with over 850 CPG brands and delivers to more than 180 retailers nationwide. According to the company, its retail logistics solutions save cost, improve visibility, and achieve industry-leading On-Time, In-Full (OTIF) performance. Those improvements drive increased in-stock rates and sales, benefiting both CPG brands and their retailer partners, the firm says.
"After several years of mitigating inflation, disruption, supply shocks, conflicts, and uncertainty, we are currently in a relative period of calm," John Paitek, vice president, GEP, said in a release. "But it is very much the calm before the coming storm. This report provides procurement and supply chain leaders with a prescriptive guide to weathering the gale force headwinds of protectionism, tariffs, trade wars, regulatory pressures, uncertainty, and the AI revolution that we will face in 2025."
A report from the company released today offers predictions and strategies for the upcoming year, organized into six major predictions in GEP’s “Outlook 2025: Procurement & Supply Chain” report.
Advanced AI agents will play a key role in demand forecasting, risk monitoring, and supply chain optimization, shifting procurement's mandate from tactical to strategic. Companies should invest in the technology now to to streamline processes and enhance decision-making.
Expanded value metrics will drive decisions, as success will be measured by resilience, sustainability, and compliance… not just cost efficiency. Companies should communicate value beyond cost savings to stakeholders, and develop new KPIs.
Increasing regulatory demands will necessitate heightened supply chain transparency and accountability. So companies should strengthen supplier audits, adopt ESG tracking tools, and integrate compliance into strategic procurement decisions.
Widening tariffs and trade restrictions will force companies to reassess total cost of ownership (TCO) metrics to include geopolitical and environmental risks, as nearshoring and friendshoring attempt to balance resilience with cost.
Rising energy costs and regulatory demands will accelerate the shift to sustainable operations, pushing companies to invest in renewable energy and redesign supply chains to align with ESG commitments.
New tariffs could drive prices higher, just as inflation has come under control and interest rates are returning to near-zero levels. That means companies must continue to secure cost savings as their primary responsibility.
Freight transportation sector analysts with US Bank say they expect change on the horizon in that market for 2025, due to possible tariffs imposed by a new White House administration, the return of East and Gulf coast port strikes, and expanding freight fraud.
“All three of these merit scrutiny, and that is our promise as we roll into the new year,” the company said in a statement today.
First, US Bank said a new administration will occupy the White House and will control the House and Senate for the first time since 2016. With an announced mandate on tariffs, taxes and trade from his electoral victory, President-Elect Trump’s anticipated actions are almost certain to impact the supply chain, the bank said.
Second, a strike by longshoreman at East Coast and Gulf ports was suspended in October, but the can was only kicked until mid-January. Shipper alarm bells are already ringing, and with peak season in full swing, the West coast ports are roaring, having absorbed containers bound for the East. However, that status may not be sustainable in the event of a prolonged strike in January, US Bank said.
And third, analyst are tracking the proliferation of freight fraud, and its reverberations across the supply chain. No longer the realm of petty criminals, freight fraudsters have become increasingly sophisticated, and the financial toll of their activities in the loss of goods, and data, is expected to be in the billions, the bank estimates.
Specifically, 48% of respondents identified rising tariffs and trade barriers as their top concern, followed by supply chain disruptions at 45% and geopolitical instability at 41%. Moreover, tariffs and trade barriers ranked as the priority issue regardless of company size, as respondents at companies with less than 250 employees, 251-500, 501-1,000, 1,001-50,000 and 50,000+ employees all cited it as the most significant issue they are currently facing.
“Evolving tariffs and trade policies are one of a number of complex issues requiring organizations to build more resilience into their supply chains through compliance, technology and strategic planning,” Jackson Wood, Director, Industry Strategy at Descartes, said in a release. “With the potential for the incoming U.S. administration to impose new and additional tariffs on a wide variety of goods and countries of origin, U.S. importers may need to significantly re-engineer their sourcing strategies to mitigate potentially higher costs.”
A measure of business conditions for shippers improved in September due to lower fuel costs, looser trucking capacity, and lower freight rates, but the freight transportation forecasting firm FTR still expects readings to be weaker and closer to neutral through its two-year forecast period.
Bloomington, Indiana-based FTR is maintaining its stance that trucking conditions will improve, even though its Shippers Conditions Index (SCI) improved in September to 4.6 from a 2.9 reading in August, reaching its strongest level of the year.
“The fact that September’s index is the strongest since last December is not a sign that shippers’ market conditions are steadily improving,” Avery Vise, FTR’s vice president of trucking, said in a release.
“September and May were modest outliers this year in a market that is at least becoming more balanced. We expect that trend to continue and for SCI readings to be mostly negative to neutral in 2025 and 2026. However, markets in transition tend to be volatile, so further outliers are likely and possibly in both directions. The supply chain implications of tariffs are a wild card for 2025 especially,” he said.
The SCI tracks the changes representing four major conditions in the U.S. full-load freight market: freight demand, freight rates, fleet capacity, and fuel price. Combined into a single index, a positive score represents good, optimistic conditions, while a negative score represents bad, pessimistic conditions.