Overcoming Logistics and Supply Chain Labor Shortages with Outsourcing
In April of 2021, the number of workers who quit their job in a single month broke an all-time U.S. record. Then, it broke again in July and August, leading economists to label it the “Great Resignation.”
As a result, job openings are now at an all-time high, and many are going unfilled for months. Meanwhile, the global supply chain is experiencing an abnormal number of bottlenecks.
Businesses everywhere, including the trucking industry, operate with fewer employees due to the labor shortage. It’s impacting far more than most people realize, from order fulfillment to a lack of goods.
With labor shortages, manufacturers must maintain strong supply chains. Outsourcing logistics management is critical in increasing supply chain flexibility and reducing workforce requirements.
Outsourcing provides access to valuable industry expertise and strategic data, whether using a logistics provider or third-party logistics (3PL) company.
How does outsourcing help overcome labor shortages?
Money-saving scalable efficiencies
Cutting costs is crucial in an environment of labor shortages, supply disruptions, and inflation. By increasing the efficiency of supply chains and freeing up time for strategic goals, outsourcing offers many ways to save manufacturers time and money.
Technology can improve productivity and help drive growth even in sub-par market conditions currently occurring in the construction industry.
Outsourcing gives manufacturers access to cutting-edge technology such as AI and machine learning, real-time data visualization tools, and data-driven insights. These innovations identify actionable ways to cut costs and streamline supply chains without additional hiring expenses.
Outsourced logistics providers can also lower costs for manufacturers by taking over carrier contracts and manual logistics tasks. Outsourcing logistics teams can identify the most cost-effective transportation for all shipments by carefully analyzing and comparing carriers and saving money in carrier contract negotiations.
Boost supply chain flexibility
Amid the uncertainty, manufacturers can increase their flexibility by optimizing supply chains. Outsourced logistics management increases a manufacturer’s supply chain agility, beginning with visibility.
In the event of labor shortages, complete supply chain oversight allows outsourced management to identify any problems, where they occur, and react. This oversight ensures optimized control of supply chains and facilities for on-time deliveries.
Build stronger supply lines
Market unpredictability forces manufacturers to evolve—often in ways that have a long-term impact. When labor shortages threaten supply chains and slow transportation, outsourced logistics management provides cost-saving efficiencies and the resources manufacturers need to get by with a smaller workforce.
About SALIX Data
SALIX Data offers customized or fully-outsourced end-to-end transportation and logistics management for those looking to boost productivity in the face of ongoing labor shortages.
Having successfully worked with over 2500 clients, we possess the experience necessary to support your team with the real-time data needed to make informed decisions and preserve your bottom line with a comprehensive range of outsourced services and baked-in business intelligence.
Protect your business against further labor shortages with streamlined supply chain management. Contact us today.