Key Supply Chain Trends for 2020
Looking back on the trends of 2019, the supply chain predictions for this year highlight several challenges for organizations.
Growing labor market challenges
Labor market challenges have been increasing over recent years. Businesses can expect to see a tighter and more competitive labor market in 2020. With unemployment at the lowest it’s been in nearly 30 years, the baby boomer retirement wave and fewer millennials seeking warehouse and manufacturing jobs, the available pool of talent has continued to shrink. Attracting new talent is becoming more competitive than ever. With supply chain organizations of all sizes competing for the same shrinking labor pool, businesses are forced to come up with creative new ways to attract candidates and stay competitive.
Rising labor wages will also make 2020 more difficult for supply chain organizations. According to Glassdoor’s Local Pay Report, the cumulative pay growth for manufacturing material handlers has increased 13.7% since 2014, while warehouse associates climbed 11.3%, truck drivers increased 12.2% and delivery drivers at an astounding 17%. While offering higher wages can give you a competitive edge in the tight labor market, it also significantly increases your labor spend.
Employee retention strategies should be top of mind for supply chain managers and executives for 2020. A proper onboarding strategy is critical to engage employees and reduce turnover. Labor management software can provide onboarding and learning curve metrics to boost a formal plan to coach and reward employees.
Increased Data Visibility
With the rapidly changing labor market supply chains companies need to be better prepared for the unexpected in 2020. Successful organizations are adopting new cutting-edge technologies to address labor demand and stay ahead of their competition. With new technologies like Labor Management Systems including business intelligence reporting, supply chain organizations can further optimize their operations through enhanced analytics allowing them to make informed data-driven business decisions.
Take a moment and visualize the future supply chain.
Meet your 2020 Goals
ProTrack Labor Management Software can help your rise to the challenges of the new decade. Contact us today to schedule a demo and learn more about what you can achieve with LMS in your operations.