Labor Shortages and their Effect on the Supply Chain
Partnering with a forward-thinking 3PL like Taylored Services is crucial to getting your products in the hands of your customers as soon as possible.
One of the most pressing issues disrupting the supply chain today are the ongoing labor challenges that have persisted since the beginning of the pandemic. The inability to find the correct candidates for job vacancies has perpetuated the greater need for hiring urgency within an already traditionally high-churn industry.
Finding the right candidate for a vacant position has not only become an industry wide issue, but has caused large disruptions to supply chain efficiency.
Business owners are now tasked with streamlining operations which includes lengthening workers shifts, servicing around the clock, and moving more volume daily with less workforce.
During this labor shortage, the average time it takes for containers to be picked from dray trucks has increased to a near all-time high. This can be attributed to driver shortages and the lack of container storage space across Southern California’s industrial market. The backlog at major U.S intermodal rail yards has drastically affected the long haul truck market. Costs have almost quadrupled for drayage as well as freight, pallets, and labor.
In the time since the height of the pandemic, the national labor shortage has raged on. An estimated 9.6 million American workers lost their jobs, but an estimated 3.5 million have resigned from their jobs in the past 3 years.
An estimated 30-40 million people will be retiring between now and 2025, which is also creating a talent gap. This leads to increased labor costs as well as higher turnover and longer onboarding periods. Supply chain workers are coming into the workforce without the technical skills they once had, which is leading employers to reimagine jobs for younger employees.
60% of supply chain jobs require skills that a mere 20% of the labor pool possesses, meaning traditional and long-term job titles and responsibilities are no longer applicable. It’s important to rethink and allocate the correct tasks to a worker based on their skill set, not what the role would have traditionally been asked to do.
How Our Award-Winning 3PL Services Can Help Your Business
Partnering with a forward-thinking 3PL like Taylored Services is crucial to getting your products in the hands of your customers as soon as possible. Taylored Services has implemented a robust protection program to combat the labor shortage outside of increasing labor costs.
They’ve put into place bonus programs, referral incentives, increased advertising for careers, and joined physical job fairs in an attempt to increase staff and allow them to position themselves for these increasing shortages.
They have dedicated team members now available over an 11-hour period (to accommodate for East and West Coast operations) who are expertly trained in the latest communication technology, business and training rules, customized applications, and most importantly, your product.
Taylored is emphasizing the importance of weekly scheduled calls in order to keep you updated on the daily operations of your business. Utilizing their Quarterly Business Report (QBR) will not only give you a breakdown of performance over the quarter but offer valuable insights that can improve your operation. They strive for efficiency. Taylored’s team members are always looking for ways to help you optimize your operation and, of course, cut down your costs.
Taylored Services’ yards continue to operate at full capacity with 24/7 access and their warehouses are operating 3 shifts with all efforts placed around reducing bottlenecks with internal processes. To address the constraints and to increase the placement of the labor force, Taylored has worked towards fast-tracking recruitment by shortening the recruitment process and reducing some standardized requirements for employment.
They are also increasing the temp to perm conversion to reduce the volatility with temporary employment. Permanent positions are key to the sustainability of the company and maintaining the high-level service that they value to our customers.
With a nationwide footprint of more than 4 million square feet, Taylored Services has the ability to service your needs wherever you are. The best choice you can make for your business is to work with a company that is staying ahead of these challenges and can offer the gold standard of customer support through difficult situations and circumstances.