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Supply Chain Executives Voice their Workforce ConcernsOur annual Workforce & Operations Planning Survey examines industry trends and challenges in labor management across the supply chain. For 2016, we heard from executives and senior management across North America in manufacturing, distribution and retail industries. The respondents shared details of their labor management programs, top-of-mind workforce challenges and future hiring plans. The results point to an evolution in workforce issues where controlling costs is just one aspect of a complex labor landscape.

Rising Wages, Shrinking Labor Pool Fuel Need for Labor Management ProgramsAccording to respondents, combating turnover and managing temporary workers are rising challenges that reflect the realities of a tightening labor market. Even faced with a shrinking labor pool, over 40% of companies plan to increase the number of associates in their supply chain this year. Faced with this conflicting mix of challenges, the majority of respondents are using a labor management system to boost workforce productivity and engagement and to control labor costs, with many companies planning to expand the role of LMS technology and practices in their operations.

What Workforce Trends & Initiatives areImpacting Supply Chain Operations in 2016?

Survey Methodology

TZA conducted the survey to explore the labor management initiatives companies in North America are planning for 2016.

The 2016 survey is the second such supply chain survey conducted by TZA, which includes responses from supply chain executives with warehouses and distribution centers in a range of industries. 72% of these executives hold senior management positions, while 28% hold C-level or Vice President posts.

Increased Hiring Plans for 2016A growing economy is creating a greater demand for skilled workers…and greater competition among employers. According to the MHI Roadmap, the logistics industries will need to fill 1,400,000 jobs in the next five years.

Of the companies responding in 2016, 41% anticipate adding new associates across their supply chain operations. This is an increase from 33% planning new hires in our 2015 survey.

41% will be increasing the number of supply chain associates in 2016

60% are currently using engineered labor

standards and/or labor management software

18% plan to expand use of labor standards

and/or LMS

Expanding Use of Labor ManagementTo respond to challenges of workforce performance, engagement and retention, a majority of companies have implemented labor management technology and programs, with additional organizations implementing or expanding their use of labor solutions in 2016.

Operational EnvironmentSurvey respondents were from small and large companies and represented a wide range of industries covering most manufacturing segments, wholesale and retail trade, and warehousing services:

• Most manage multiple facilities• Average number of warehouse associates is 667• 45% have delivery fleets • 61% offer kitting, assembly or other value-add services

Transportation & WarehousingRetailLife Sciences

Consumer Goods

Food & Beverage

Industrial Supply

Industries

4%8%

14%

16%

24%

34%

Top 5 Workforce ChallengesSurvey respondents confirm that there are shifts in traditional labor management strategies and objectives. While controlling labor costs is still an important goal, finding and keeping skilled workers has become a primary challenge today as turnover rates keep rising. The use of temporary labor―and managing a contingent workforce―is also a growing concern for many respondents.

Rising Wage &Benefit Costs

Turnover TemporaryLabor

UnplannedOvertime

Visibility toPerformance

47%43%

38%30%

25%