Staff Shortages in Logistics Persist Despite Economic Downturn

The Descartes Systems Group, the world’s leading Software-as-a-Service provider for logistics companies, has released its first study of 2024: “Workforce for Supply Chain and Logistics: How Great is the Challenge?” According to 76 percent of the 1,000 logistics executives surveyed from nine countries worldwide, the industry is experiencing a significant shortage of personnel resources. This, in turn, affects finances, logistics performance, and, according to around 600 respondents, negatively impacts customer service.

(Leipzig) The survey was conducted at the end of 2023 and forms the first part of a two-part study by the internationally operating corporate group in collaboration with SAPIO Research. The stated goal is to give companies, in the first step, a sense of the causes and areas of impact of the labor shortage, in order to create a perspective on possible solutions for the personnel challenges in the second part of the study.

“After the economic boom phase of recent years, the situation is gradually cooling down. Therefore, many companies in the logistics sector assumed that the personnel shortage would also slowly ease. Unfortunately, this is not the case, and we are getting to the bottom of this problem with the study,” says Dirk Haschke, VP & General Manager, E-Commerce Solutions at the Descartes Systems Group. The difficulty in finding sufficient personnel remains very present and will continue to be so. 37 percent of the logistics decision-makers surveyed classify the resource shortage as high to extremely high.

Aside from the logical consequence that logistics processes run slower with insufficient personnel, this situation also affects the overall performance of a company in the long run. For example, 58 percent of respondents indicate that the quality of customer service suffers due to the shortage. “At the latest during the peak season, the consequences of the labor shortage are felt throughout the entire supply chain. Orders are processed late or incorrectly, and shipping service providers do not deliver on time,” explains Haschke. Additionally, employee dissatisfaction rises due to overtime and performance pressure, especially in labor-intensive areas such as warehousing and transportation. Ultimately, this also increases frustration for customers.

According to the study’s findings, the personnel shortage—especially in the expert sector—primarily affects the performance of companies and their logistics partners in the areas of finance, customer service, and logistics performance during peak phases. Decision-makers are increasingly turning to modern technology to at least partially compensate for the lack of transportation and warehousing personnel. In turn, skilled professionals with expert knowledge are becoming increasingly important to manage technology-driven and data-driven supply chains. Finding these professionals presents a new challenge that the study respondents must face in workforce planning.

Skill Shortages Persist

The results of the Descartes and SAPIO survey suggest that skill shortages will continue to persist in the future. Therefore, the Descartes Systems Group recommends that executives along the entire logistics supply chain further develop their hiring processes and comprehensive programs for workforce recruitment and retention. Additionally, the use of technology helps to automate work steps that were previously handled by personnel.

Download the study here

Photo: © Descartes