We use cookies to provide you with a better experience. By continuing to browse the site you are agreeing to our use of cookies in accordance with our Cookie Policy.
  • INDUSTRY PRESS ROOM
  • SUBMISSIONS
  • MEDIA FILE
  • Create Account
  • Sign In
  • Sign Out
  • My Account
Free Newsletters
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
  • STRATEGY
  • GLOBAL
  • LOGISTICS
  • MANUFACTURING
  • PROCUREMENT
  • VIDEO
    • News & Exclusives
    • Viewer Contributed
    • CSCMP EDGE 2022 Startup Alley
    • Upload your video
  • PODCAST ETC
    • Podcast
    • White Papers
    • Webcasts
    • Events
    • Blogs
      • Reflections
      • SCQ Forum
    • Mobile Apps
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
  • STRATEGY
  • GLOBAL
  • LOGISTICS
  • MANUFACTURING
  • PROCUREMENT
  • VIDEO
    • News & Exclusives
    • Viewer Contributed
    • CSCMP EDGE 2022 Startup Alley
    • Upload your video
  • PODCAST ETC
    • Podcast
    • White Papers
    • Webcasts
    • Events
    • Blogs
      • Reflections
      • SCQ Forum
    • Mobile Apps
Home » Labor and skills shortage slow corporate dash toward digitalization

Labor and skills shortage slow corporate dash toward digitalization

Survey from ToolsGroup and CSCMP shows top supply chain investment for 2022 is “increasing recruitment and training efforts.”

toolsgroup Screen Shot 2022-05-13 at 1.31.24 PM.png
May 13, 2022
Supply Chain Quarterly Staff
No Comments

As companies continue to emerge from pandemic restrictions and cope with volatile economic conditions, a stubborn shortage of labor and skills is weighing down their efforts to settle on a “new normal,” a study shows.

One of the main victims of the labor pinch is digital transformation, which remains a popular goal—more than 93% of companies are actively engaged in that pursuit—but is hamstrung by the people/skills deficit, which is cited as the number one obstacle by 53% of firms, according to a survey from supply chain planning provider ToolsGroup and the Council of Supply Chain Management Professionals (CSCMP).

“The past two years have put a spotlight on the need for digitizing supply chain planning, and fortunately, more companies than ever are responding by stepping up efforts to transform their operations,” Caroline Proctor, chief marketing officer at ToolsGroup, said in a release. “The percentage of companies that are not pursuing a digital transformation strategy at all is, at 7%, the lowest we have measured so far. Our findings reveal increasing investments in software, automation, and people.”

Leaders surveyed in the third annual report are “extremely concerned” about external supply chain threats but lack the people needed to make transformation succeed, ToolsGroup and CSCMP said. Measured another way, respondents said their top growth investment for 2022 is “increasing recruitment and training efforts,” according to results from the survey of more than 300 supply chain professionals around the world completed between January and March.

Those results run parallel to the results of the same survey last year, which found that companies around the globe were striving to speed up their logistics digitization plans to meet continuing pandemic challenges, but nearly half of them were hindered in that process by a lack of the necessary technology skills among their employees.

However, there were also some large shifts over the past 12 months, as last year’s top objective–to keep up with evolving customer behaviors and expectations–has plummeted to number five in 2022. Following the top response about recruitment and training, other high-priority goals are developing better and faster reactions to unplanned disruptions (47%) and increasing supply chain resilience (also 47%). 

Looking into the future, most companies started 2022 with a positive business outlook, but they remain extremely concerned about external factors that have impacted supply chain planning strategies in the last two years. The survey showed that the external concerns that most worry respondents are: supply chain delays (25%), surging inflation (24%), and escalating fulfillment costs (19%).

“The survey results show that companies are charting a steady course toward digital transformation,” Mark Baxa, CSCMP’s president and CEO, said in a release. “As supply chain challenges become more frequent and intense, company leaders are increasingly focused on implementing solutions that can help them better manage risk, bypass skills shortage and become more resilient.”

The results of the 2022 ToolsGroup/CSCMP survey on digital #supplychainplanning are in! Read the release and download the full report https://t.co/vFnWHaovE0 for insights from over 300 global supply chain leaders. #digitaltransformation #automation pic.twitter.com/Ke3OA2i2GT

— ToolsGroup (@ToolsGroup) May 12, 2022
Strategy Technology
KEYWORDS CSCMP - Council of Supply Chain Management Professionals ToolsGroup
  • Related Articles

    Labor pains to speed digitalization initiatives in 2023

    Global Study: 52% of Digital Supply Chain Transformation Hamstrung by Skills and Labor Crunch

    Keynote speaker: Want to solve the labor shortage? Start valuing blue-collar work

Recent Articles by Supply Chain Quarterly Staff

IoT vendors say industry needs better collaboration

Survey: only 55% of shippers filled their LTL trucks to full capacity in 2022

Survey: consumers set price cap on paying sustainability premium

You must login or register in order to post a comment.

Report Abusive Comment

Most Popular Articles

  • Survey: parcel delivery drivers are frustrated by using their own smartphones for work

  • Survey: most Americans unaware that truckers face shortage of parking spaces

  • Best practices in logistics sustainability

  • Supply chain executives not yet seeing expected results from technology investments

  • Postal Service plans to seize items mailed with fake stamps

Featured Video

20221107korber large vs

Enhancing Customer Experience with Your Supply Chain Strategy

Viewer Contributed
With the rise of e-commerce, many businesses have had to transform their warehouses to handle online orders in addition to regularly scheduled inventory shipments. This means warehouses need more information than ever before to ensure they can meet customers' needs. As a result, companies need to select warehouse...

FEATURED WHITE PAPERS

  • Five tips for parcel success in 2023

  • Guide to Pallet Rack Safety

  • 3PLs: Complete Orders Faster with Flexible Automation

  • A shipper's guide to navigating post-pandemic holiday freight

View More

Subscribe to Supply Chain Quarterly

Get Your Subscription
  • SUBSCRIBE
  • E-NEWSLETTERS
  • ADVERTISING
  • CUSTOMER CARE
  • CONTACT
  • ABOUT
  • STAFF
  • PRIVACY POLICY

Copyright ©2023. All Rights ReservedDesign, CMS, Hosting & Web Development :: ePublishing