As the labour market tightens, demand for supply chain and tech talent is at an all-time high. With the skills shortage posing a major threat to organisations’ resilience, efficiency and profitability, Körber Supply Chain takes a deep dive into what’s driving the labour shortage and how businesses can better retain, attract and upskill their workforce.
According to recruitment firm Hays, more than 91 per cent of Australian and New Zealand businesses are currently experiencing a skills shortage. The Hays Salary Guide 22/23 revealed 83 per cent of responding businesses stated the insufficient supply of local skilled professionals will hinder growth and operations this year – the highest level the recruiter has recorded in the 43 years it’s been producing its report.
The talent crisis is being felt around the world, in every region and sector. In supply chain and retail, the pursuit of customer satisfaction and efficiency is the driving force for many businesses, and as a result sourcing and retaining labour has become extremely challenging.
“The supply chain is facing competing customer demands for faster delivery, and more product choice, all against the backdrop of unprecedented labour shortages,” Anthony Beavis, Managing Director APAC at Körber Supply Chain tells MHD.
Finding and retaining labour is one of the biggest challenges facing supply chain businesses today. In a recent Körber Master Class Survey, 73 per cent of respondents indicated that it takes at least 30 days to fill an open warehouse position.
Not only is there a worldwide shortage of staff, but it is also becoming increasingly difficult to attract workers into a warehouse environment that can be both physically demanding and dangerous.
Combine this with low pay and the constant pressure for efficiency and consumer satisfaction, and you have a perfect storm of worker disinterest and dissatisfaction.
However, according to Körber’s Anthony Beavis, the skills shortage presents an opportunity to redefine the way we work, including the way we value our employees.
“Without productive, efficient and motivated teams a supply chain operation simply cannot serve its customers. We know that employees are motivated when they feel valued and can create impact. To compete for talent in today’s environment, we need to make sure all employees feel valued by using technology to create an optimised environment for them to thrive in,” Anthony says.
Overcoming challenges with advanced technology
Against these challenges, technology offers a solution, unlocking new operational savings while supporting employees to work more safely, enthusiastically, and productively.
Introducing the right technology, in the right place, and connecting it with the workforce and the warehouse system, will enable organisations to build the supply chains needed for the future.
With warehouse managers under increasing pressure, they now must find, train and engage staff to manage the demands of growing customer expectations, expanding product lines and unexpected peaks.
Today, Körber customers around the world are leveraging the benefits of advanced technology to improve efficiency and productivity and increase employee safety and engagement.
Empowering employees with voice picking technology
One highly agile and flexible solution is voice-directed work (VDW). During the early stages of the pandemic, one of Australia’s largest retailers worked with Körber to become the first Australian retailer to deploy Android Voice based systems throughout its retail fulfilment operation.
The Android Voice solution guides employees with online and instore order fulfilment – improving productivity, reducing errors and safety incidents, as well as decreasing training time.
By blocking out the noise of the warehouse and streamlining worker activities, VDW can improve accuracy, productivity, and safety across various functions in the warehouse including picking, putaway, replenishment, cycle counting, receiving, inspection and line loading.
In some use-cases, VDW has proven to improve productivity by 35 per cent, accuracy by up to 85 per cent, reduce training time by 50 per cent and importantly, reduce employee turnover by 50 per cent.
Boosting efficiency with agile automation
A further opportunity to tackle labour challenges with technology is the use of Automated Mobile Robots (AMRs). In the APAC region, Körber has been working with several major logistics providers and retailers to boost efficiency and help tackle labour shortages with agile and flexible automation.
Equipped with a combination of sensors, vision systems, and sophisticated mapping software that allows AMRs to respond in real time to changes in the environment, these robots can move independently around the warehouse, avoiding people and objects.
Many are fitted with screens that help assist warehouse workers, with details of what needs to be picked or put away. Ideal for scaling up and scaling down, they help organisations rapidly meet peak demands and can move goods more efficiently around the warehouse than traditional picking methods.
They also reduce the steps and movement that warehouse staff have to make, which not only improves productivity but reduces the risks of slips and falls, repetitive strain injuries and fatigue or fatigue-related accidents.
During the challenges of the pandemic, a record number of retailers and logistics providers explored the use of AMRs in their operation. Most recently, a major Australian department store retailer announced it will work with Körber to deploy more than 200 AMRs at its new national distribution centre.
This major commitment to AMR technology will make the leading retailer the first in the world to boast three different AMR technologies – Geek+ RS8 Shuttle, P800s and Körber’s sortation solution, the site will also be the largest Geek+ RS8 Shuttle implementation in the Southern Hemisphere.
Where technology meets humanity
Rather than be a cause for conflict, technology can be used to fulfil the needs of both the customer and the employee. With careful planning and consideration, the introduction of selected technologies can be a cost-effective way to improve product quality and choice, while simultaneously driving safety, productivity, and worker engagement.
“Any solution needs to match the scale of your operation, and offer benefits from both a safety and an efficiency perspective, encompassing the requirements of both your business and your workforce,” Anthony Beavis says.
Another major Australian retailer is working with Körber Supply Chain to deploy advanced technology to not only improve fulfilment capabilities but benefit the wellbeing of its team members.
As the organisation grows, the retailer maintains focus on its team members and their wellbeing. As a result, it has explored technology that enables it to not only fulfil at an increased speed and rate but improves the environment for its team members.
“At Körber, we look at technology with a much wider lens and as such it has been great to deliver some further benefits for our customers around sustainability, employee wellbeing and occupational health and safety,” Anthony says.
Finding the right solution
Whether an organisation needs to respond to peak demand or manage crises, increase employee awareness and social distance, expand product lines, or adapt to new regulations – technology is available to support.
“Whether your organisation is national or international, single warehouse or multi-distribution centre, single channel or omnichannel, there is the technology to match and scale to your needs,” Anthony says.
However, whatever technology is deployed, labour will always remain the cornerstone of any operation.
“That is why the needs of your workforce must be considered in every technological decision. Using technology as a tool to augment and support employees to do their jobs better is the secret to keeping them safe and on side,” Anthony concludes.
For more information on Körber, click here.