As the supply chain industry grows in size and complexity the need for labor simultaneously grows. This paired with the shift to retirement age in the Baby Boomer generation has caused a rift in qualified labor availability. In the recently released 19th Annual Third-Party Logistics Study 50% of surveyed executives are encountering this problem. Finding and retaining qualified labor has become a struggle for many supply chain management businesses. To address this challenge many 3PLs, warehouse and distribution centers, manufacturers and retailers are taking steps towards developing and attracting new talent. Supply chain executives have begun to implement supply chain community engagement programs where community members of all ages can participate in trade shows, summer camps, ambassador programs and local competitions. In 2014 there was a nationwide Manufacturing Day where 1600 events were held, drawing 250,000 attendees. These types of programs help to educate people about the industry and address any misconceptions, making these open positions more desirable. Partnering with local schools in the form of STEM programs have also shown positive results. These programs equip students with the knowledge, skills and understanding that SCM businesses search for in qualified candidates. While this does not solve the immediate labor shortage it helps to ensure a consistent flow of candidates in the coming decade. Working with third party recruiters and university intern programs have also helped to bring in new qualified talent into the labor pool. 68% of surveyed CEOs thought that recruiting using third parties was providing the best results in comparison to 63% for internships. Both provide qualified talent to mitigate the existing shortages. Supply chain businesses are also beginning to invest in internal training and development programs in hopes of increasing employee retention rates. 94% of surveyed executives believe these programs improve the state of the talent gap as well. These internal programs should be all encompassing including both formal and informal training, knowledge sharing, apprenticeship, performance support and coaching. All of these key areas will provide supply chain businesses with qualified team members. 3PLs and other industry groups are also raising labor budgets to allow for much needed wage increases. These increases will not only help to retain current skilled labor positions, but attract new talent to open skilled and executive level positions. Investing in technology such as automated storage and retrieval systems, mobile computers, voice technology, WMS, 3D printing and more is also attracting new, fresh GenX tech-savvy talent. It is shown that SCM businesses with higher levels of automation have more success filling open positions with interested GenX employees. Lastly, implementing labor management technology has also helped to mitigate the labor shortage issues.

1. HOW THE
SUPPLY CHAIN
INDUSTRY:
IS ADRESSING
LABOR
SHORTAGES

2. Supply Chain Labor Shortages
• According to the findings of the 19th Annual Third-PartyLogistics
Study performed by Penn State, Penske Logistics and Capgemini:
– 50% of executives surveyed are having issues finding and retaining qualified talent
– Supply chain management positions will outpace available, qualified labor 6:1 in
the next few years

3. Supply Chain Community
Engagement Programs
• Supply chain businesses and affiliated organizations have begun
reaching out to their communities to remove misconceptions about
the industry and educate about available jobs within their
organizations
• These come in the form of:
– Trade shows
– Summer camps
– Ambassador programs
– Local competitions
• An example of this is “Manufacturing Day” held in 2014 where 1,600
events were held with 250,000 community members in attendance

4. Supply Chain Industry is Partnering
with Local Schools
• 3PLs, warehouses, manufacturers and other supply chain businesses
have started STEM programs in secondary schools.
• These programs equip students with the knowledge, skills and
understanding that SCM businesses look for in qualified candidates.
• While this is not an immediate solution to labor shortages, it helps to
ensure a steady flow of candidates for the next decade.
2015 2017 2019 2021 2023 2025

5. Using Third Party Recruiters & Interns to
Remediate the Labor Shortage
• In search of qualified candidates SCM organizations are utilizing third
party recruiting firms to identify those in the labor pool that fit their
needs and begin the interview process on their behalf.
• These businesses are also utilizing internships with local
opportunities to attract new, qualified talent to the industry that may
have selected jobs elsewhere.
* These methods work best when filling high-level, technical positions such as
engineers, researchers, etc.
100%
80%
60%
40%
20%
0%
Recruiters Internships Universities
68% 63% 58%
Survey results showed that
CEOS thought these areas
provided the best hiring results

6. Supply Chain Operations Are Investing in
Internal Training & Development Programs
• These types of programs have proven to mitigate issuesencountered
due to the supply chain talent shortage
• Of SCM executives surveyed, 94% believe these programs improve
the state of the talent gap for skilled laborpositions
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%

7. Invest in Internal Training & Development
Programs
• Successful training programs are all inclusive with:
Formal training
Apprenticeship
Informal training
Performance support
Knowledge sharing
Coaching

8. Supply Chain Industry Wage Increases
• As job complexity increases, a higher level skillset is requiredfor
employees. These higher skillsets typically results in higher wages.
• In many cases wage increases have been minimal, as low as25
cents between 2004 and 2015.
• Supply chain businesses see increasing wages as an opportunityto
incentivize high level employee retention and are investing more in
their labor budget than in previous years.
0
2
6
4
2015 2017
Wages
2019 2021
Labor Pool Size
It is assumed that as wages increase,
labor supply will increase
simultaneously

9. Labor Shortage Spurs Investment in
Technology to Attract GenX Workers
• As Baby Boomers exit the workforce and a more tech-savvy GenX
workforce enters, state-of-the-art technology becomes more
desirable and a draw for potential employees.
• Of supply chain businesses surveyed in the recent 19th Annual Third-
Party Logistics study, businesses with higher levels of automation
and technology use have more success in filling open positions with
interested GenX employees.
Automated storage&
retrieval systems
Mobile computers Voice directed
technology

10. SCM Businesses Are Investing
in WMS & Labor Management Systems
• SCM businesses have also begun to implement warehouse
management software (WMS) with labor management functionality
to monitor, analyze and make changes to labor planning.
• Insight into real-time labor analytics helps supply chain management
operations such as 3PLs optimize how their labor is used, eliminating
excess labor hours and reducing overall costs.
• Labor planning increases productivity and helps these businesses to
determine the appropriate staffing level needed, potentially reducing
existing labor shortages by eliminating unnecessary positions.

11. Conclusion
Sources:
http://www.supplychainquarterly.com/news/20141022-talent-shortage-permeates-logistics-and-supply-chain-organizations-annual-survey-concludes/
http://www.dcvelocity.com/articles/20141002-warehouse-dc-labor-crunch-approaching-crisis-levels-at-worst-time-survey-finds/
http://www.rila.org/supply/resources/Documents/Fifth%20Annual%20SRSC%20Report.pdf
http://www.themanufacturinginstitute.org/~/media/827DBC76533942679A15EF7067A704CD.ashx
http://www.supplychain247.com/article/forecasting_a_supply_chain_talent_perfect_storm
• 55% of supply chain executives plan to invest higher than average
dollars in 2015 for talent development to reduce or eliminate labor
pool issues
• All of these techniques play a part in minimizing labor issues
encountered by SCM organizations
Talent Development Expenditures 2015
100%
80%
60%
40%
20%
0%
Higher OnPar Lower None

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