Technology is changing the way we recruit, retain and motivate people working various supply chain roles.
Written by the DHL Supply Chain team
The world of work is changing, and technology and digitalization is playing a huge part in that. It is estimated that AI and other related technologies, for example, have the potential to automate work activities that absorb 60 to 70% of employees’ time today.
But what specific impact is technology having, and how will it change things in the future, for supply chains? With a range of roles, from office-based and administration to warehouse and distribution, there are a multitude of areas which will be impacted in different ways.
We take a look across three different areas—working conditions, role types, and recruitment and retention of employees—at how technology is changing the way we work within supply chains.
Changing working conditions
The last few years have seen increased pressures on the supply chain workforce, with the logistics sector expecting to face worker shortages of 400,000 by 2026.
There are many reasons workers are driven to leave the logistics sector, or prove reluctant to enter it in the first place: perceptions of it being a dirty, labor intensive and antiquated sector to name a few. Digitalization and technology can enhance the human workers’ experiences, however.
Indoor robotic transport, such as AGVs, can move pallets, bins and cages accurately and safely, allowing the reassignment of human workers to more satisfying work and reducing labor fatigue, while increasing operating capacity. Many organizations are realizing the benefits—the automated guided vehicle market size reached USD 3.39 billion in 2020 and the market is predicted to grow at an annual rate of 13.8% up to 2028.
Beyond the warehouse, driver fatigue is one of the leading causes of fatalities for truckers on the road, but it is preventable. Devices such as Optalert glasses can detect eye movements associated with fatigue, while in-truck driver assist, automation technology and data-driven tracking and route planning can ensure no driver is pushed beyond reasonable driving limits.
And consider back office and administration functions. Invoicing carriers, requesting Proof of Deliveries and scheduling delivery appointments are all repetitive tasks that can tie up a lot of time. This is where a technology like Intelligent Process Automation can help. It’s an AI-like system which automates and takes over repetitive, time-consuming, high volume tasks, freeing up time for employees and moving them away from jobs like data entry and constant copying and pasting between systems.
Technologies such as these are all a vital step towards reducing physical and mental strain, increasing safety, and allowing employees to focus on more challenging tasks, ultimately enabling them to add more value and further develop their skills and job experience.
Changing roles
As well as changing working environments, digitalization is changing the types of roles organizations need to create and fill. One study has found that 92% of jobs require digital skills, including those that traditionally wouldn’t have before. In supply chain’s frontlines, the need is for more technical and analytical competencies.
There has also been the creation and proliferation of digital-specific roles too, particularly around data. This is the result of digital advances such as data analytics, the Internet of Things and digital twins for planning and risk mitigation, to name three.
This means that in much the same way that firms such as Tesla are integrated technology and automotive companies, traditional supply chain and logistics organizations will need to ensure digitalization is a fundamental part of their operations, with a workforce to match. Data architects, analysts, AI specialists and others will become as vital to leading logistics companies as warehouse operatives, drivers and pickers and packers.
For employees who have been in the supply chain industry for years, this transition to a digital workplace can be a daunting challenge. However, across all industries, only 40% of employees said their company is upskilling—supply chain organizations must ensure they are empowering their employees to achieve their, and the company’s, ambitions.
Another technology, virtual reality (VR), can hold the key to this upskilling. Compared to classroom or e-learning environments, VR systems can significantly increase the effectiveness of workplace training, while reducing the time needed by workers to train. On average, it can be four times faster to train by VR than through the classroom, with a resulting 275% increase in confidence at putting new knowledge into action, compared to a 198% increase from face-to-face learning.
Changing HR processes
As well as increasing efficiency and automation in the warehouse or production facility, digitalization can also transform HR practices.
Take recruitment, for example. At DHL Supply Chain we onboard more than 30,000 people each year, and in doing so, we need to assess more than one million applications. Technology, in particular artificial intelligence, is becoming key to dealing with these huge volumes more effectively and efficiently.
And to fully empower an internal workforce to progress their careers, employees can upload profile information to digital systems, including the skills they want to develop and areas of work that interest them. These systems can then point managers to people whose suitability for a vacancy might not otherwise be obvious.
Digitalization is also helping to ensure a feeling of belonging among employees, regardless of role. Employee engagement apps allow frontline and office-based staff to access news and information applicable to them, both on desktop or mobile devices.
Reporting and analytics platforms can also connect HR system capabilities with key business and talent outcomes. For example, HR can use tech-enabled talent analytics to inform leader decisions and enhance talent outcomes.
And talent management leaders can use predictive analytics to provide insights on attrition, burnout, employee sentiment and other metrics.
Say, for example, that an employee still has two weeks of annual leave available, and the year-end is approaching. Using analytical systems, HR can proactively reach out to that employee, letting them know that they still have vacation time left and checking to see if they had considered taking some time off. By cross-referencing with their work schedule, dates could be suggested that might be suitable for taking vacation.
Operational needs can then be met by automatically providing other available employees with the ability to view and select open shifts using flexible shift planning solutions.
From the day-to-day job to organizational recruitment and retention, digitalization is changing talent acquisition, management and employment—and will continue to do so. But despite all the changes one fact remains—the future of work is a combination of the best of people and the best of technology.