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Supply Chain Challenges, Logistics Labor Management

What Shortage? We’ll Just Have to Pay More

Alex Stark | December 05, 2012

By 2018, there is expected to be a shortfall of almost 200,000 qualified applicants for positions in logistics and supply chain.

The counter argument goes – pay more and the people will come. That may be true. Maybe.

Problem is who pays the additional money to cover those roles? The third party logistics company who hires truck drivers, forklift operators, distribution center personnel? The manufacturer whose employees handle the daily tasks of producing, storing, and shipping product? The retailer who receives, stocks, and sells product?

Truth is the consumer pays ultimately. If the theory is correct, then the increased pay to entice individuals to the supply chain sector will have a daisy chain effect on all parties.

Trouble is (as in most low margin, mostly transactional industries) – who makes the first move? Competition is fierce, so no one wants to risk paying more, raising rates, and possibly losing business.

Labor management as a supply chain strategy, anyone? It's your move.