By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
Start Your Business Magazine
  • Store
    Merchandise
    Subscribe
  • Features

    Grow, expand and leverage your business..

    Grow your start up business with our experts and industry insiders…

    Get Started

    Quick Links

    • Agenda
    • Business Books
    • Marketing
    • Technology
    • Wellbeing
    • Finance
    Reading: Automation’s Role in Alleviating UK Labour Shortage Pressures

    Our Newsletters

    Our website stores cookies on your computer. They allow us to remember you and help personalise your experience with our site..

    Read our privacy policy for more information.
  • Book
  • Trending
    Uncategorized

    Protected: Promotional Products That Boost Visibility and Loyalty

    This content is password protected. To view it please enter your password…

    blog

    Scam Report: The Latest Trends in SMS Cyber Attacks

    Brands Most Frequently Imitated  by Scammers Many SMS scams impersonate businesses to…

    agenda

    Social Domestic Pleasure or Commuting?

    DRIVING TO A WORK MEETING OR A COMPANY AWAY DAY? YOU MIGHT…

  • Topics

    Topics

    • Agenda
    • Blogs
    • Book Review
    • Business Advice
    • eCommerce
    • SME Update
    Reading: Automation’s Role in Alleviating UK Labour Shortage Pressures
    • Events
    • Business Experts
    • Featured
    • Franchise
    • Growing Business
    • Health
    Reading: Automation’s Role in Alleviating UK Labour Shortage Pressures
    • Finance
    • Franchise Experts
    • How To
    • Interviews
    • Just for fun
    Reading: Automation’s Role in Alleviating UK Labour Shortage Pressures
    • Lifestyle
    • Making money
    • Manufacturing
    • Marketing
    • Money
    • Property
    Reading: Automation’s Role in Alleviating UK Labour Shortage Pressures
    • Starting Up
    • Taxation
    • Technology
    • Wellbeing
    • Women in Business
    Reading: Automation’s Role in Alleviating UK Labour Shortage Pressures
Reading: Automation’s Role in Alleviating UK Labour Shortage Pressures
Connect
Start Your Business MagazineStart Your Business Magazine
Aa
  • Magazine
  • SEO – Backlinks
  • Book: Start Your Business
Search
  • Agenda
  • Book Review
  • Blogs
  • Finance
  • Growing Business
  • How To
  • Interviews
  • Marketing
  • SME Update
  • Starting Up
  • Technology
  • Wellness
  • Contact
Have an existing account? Sign In
Follow US
  • RSS
  • Terms And Conditions
  • Privacy Policy
  • Contact
  • Licensing
  • SEO
Copyright © 2014-2023 Ruby Theme Ltd. All Rights Reserved.

Automation’s Role in Alleviating UK Labour Shortage Pressures

Start Your Business
Technology
Share
9 Min Read

The pandemic has undoubtedly had a knock on effect across the global labour force, as many companies were forced to downsize operations or shut their doors, either temporarily or permanently. This jolt to business-as-usual, followed by a mass exodus of workers from the labour force during the Great Resignation and a hangover from Brexit created a ripple effect in the UK workforce that continues to impact employers today. 

Contents
Recruitment SOSHow technology helps turn the tide amidst workforce constraintsTech in actionAI making wavesLooking ahead

In fact, ONS data has revealed that nearly one third of UK businesses are experiencing labour shortages after an increase in economic inactivity post-pandemic. The number of workers has declined by 545,000 in what became known as ‘The Great Resignation’, a drop that contributed to worsening inflation and which also limited public service funding. Other factors, such as Brexit, have also resulted in a damaging effect, with research suggesting that the UK has lost over 330,000 workers due to Britain’s decision to leave the EU in 2016. 

Andrew Tavener, Head of Marketing for Fleet Solutions at Descartes Systems, explains how automation can help alleviate the UK’s labour shortage pressures. 

Recruitment SOS

As a result of this ongoing worker supply and demand imbalance, organisations are struggling to secure the labour, knowledge workers, and leaders they need to thrive—and logistics and supply chain-focused businesses have been hit particularly hard. According to a recent survey, 76% of supply chain and logistics leaders are experiencing notable workforce shortages in their operations, with 37% of respondents characterising the resource shortage as high to extreme. 

Although competition for resources is an enterprise-wide issue, the acuteness of the labour challenge varies by organisational function. According to survey data, transportation operations (61%) and warehouse operations (56%) were hardest hit by resource shortages, from truck drivers to the fulfillment team on the warehouse floor, as companies struggle to meet customer demands with fewer workers.

While these areas are admittedly highly labour-intensive, 55% of supply chain and logistics leaders said knowledge workers are the hardest to hire—and they are becoming increasingly important as supply chain and logistics operations become more technology-enabled and data-driven. 

Throw the extreme demands of peak season into the mix—only 9% of logistics and supply chain leaders said workforce shortages did not impact peak season performance at some level—and companies are feeling the pressure. And not only is the labour shortage affecting companies’ peak season, financial, and logistics partner performance, but it’s also taking a toll on customer service performance, with 58% of respondents specifying that workforce shortages have negatively impacted service levels. 

How technology helps turn the tide amidst workforce constraints

Staring down the barrel of critical labour shortages, logistics-focused organisations are centering their operational strategies around automation and technology solutions to ease the resource burden. A recent study that examined which strategies and tactics companies are implementing to survive the current labour shortage revealed that 54% of the supply chain and logistics leaders surveyed are focused on automating repetitive tasks and non-value-added services —a logical step in reducing the resource footprint to perform at higher levels with fewer workers.

The survey also found that 50% of the logistics-focused organisations surveyed are leaning into centralising operations (e.g., centralised transportation planning). Typically executed through cloud-based solutions leveraged as shared services across the enterprise, this strategic approach helps increase operational efficiency without increasing headcount.

Tech in action

How does the goal of automating repetitive, low-value tasks and leveraging technology to drive efficiencies translate to the warehouse floor or to transportation operations? Driverless vehicles, robotics, drones, and soft and hard automation in the warehouse are all on the table for supply chain and logistics decision-makers but there are some clear productivity-boosting technology winners in the pursuit of mitigating current labour challenges in these areas. 

To help drive productivity gains for labour workers, a late 2023 survey of 1,000 supply chain and logistics decision-makers across three sectors: 1) manufacturing, distribution and retail; 2) carriers; and 3) logistics services providers revealed that delivery route optimisation (54%) and driver mobile productivity (45%) solutions are the top technology choices. To mitigate the impact of the shortage of knowledge workers, automated real-time shipment tracking (53%) emerged as the top technology choice.

Indeed, for distribution-focused organisations, deploying automated technology solutions that optimise route planning and execution and mobile apps that help drivers perform more efficiently (and safely) on the road translates to productivity gains that reduce labour requirements. 

For instance, strategic route planning solutions increase route density and asset utilisation, while reducing planning time and resources required to deliver maximum efficiency. In another example, intelligent dispatch and tracking software uses real-time GPS to ensure responsive, more consistent on-time delivery performance that helps to keep customer service standards high.

In the warehouse, some companies are turning to robotics and automated guided vehicles (AGVs) to eliminate the need for manual labour. On the back end, warehouse management systems (WMS) with barcode-based pick and pack workflows, multi-carrier parcel/LTL shipping automation and capabilities for real-time visibility into the order journey help companies minimise labour costs and fulfil more orders while enhancing the customer experience.

Perhaps even more importantly, automated logistics and supply chain technology solutions not only ramp up productivity but play a role in improving employee retention by simplifying and streamlining daily workflows for warehouse staff, planners, dispatchers, and drivers —a valuable advantage amidst ongoing labour constraints.

AI making waves

In the wake of the launch of ChatGPT, interest in Artificial Intelligence (AI) has surged and generative AIs have raised awareness and expectations related to AI technologies, as well as opportunities to bring new capabilities into the market. Supply chain and logistics leaders are also looking to AI to help improve operational efficiency and worker productivity. According to the survey, almost 30% of respondents are in the process of investigating AI technology while 53% are planning to deploy/partially deployed/fully deployed in their AI implementations. 

As logistics becomes increasingly data-driven, the ability of AI to analyse vast volumes of data in the blink of an eye will continue to propel technology innovations. While AI-based capabilities like, for example, predictions and event detection in the context of route planning and transportation management, have been embedded in logistics technology for years now, the capacity of AI to continuously evaluate tens of thousands of data points and variables and make learned adjustments will help to further automate and accelerate logistics processes, eliminate redundancies and inefficiencies, and increase worker productivity.

Looking ahead

For supply chain and logistics leaders faced with the challenge of keeping operations profitable with fewer resources post Brexit, post pandemic and after the Great Resignation, technology is changing the face of the strategies, tactics, and best practices used. For labourers bogged down with repetitive and time-consuming low-value tasks and for knowledge workers spending an inordinate amount of time preparing data, compiling reports, or tracking shipments manually, automation is a gamechanger. 

With technology-powered tools doing the bulk of the heavy lifting, workers can free up valuable productive time to focus on more meaningful tasks, while enjoying more simplified and streamlined workflows that enhance their daily work experience and, ultimately, help improve retention rates. From the C-suite perspective, the combined power of automating low-value, repetitive tasks and adopting technology-driven solutions spurs increased productivity, supply chain visibility, and top- and bottom-line performance while fostering more positive employee, partner, and customer experiences.

Sign Up For Daily Newsletter

Be keep up! Get the latest breaking news delivered straight to your inbox.

By signing up, you agree to our Terms of Use and acknowledge the data practices in our Privacy Policy. You may unsubscribe at any time.
Start Your Business September 18, 2024
Share this Article
Twitter LinkedIn Reddit Email Copy Link
  • RSS
  • Terms And Conditions
  • Privacy Policy
  • Contact
  • Licensing
  • SEO

Get the latest from us delivered straight to your inbox

Start Your Business Magazine: The Ultimate Business Start Up Guide provides information advice and guidance for entrepreneurs and new business start ups. Get the latest from us delivered directly to your inbox.

Our website stores cookies on your computer. They allow us to remember you and help personalize your experience with our site..

Read our privacy policy for more information.

Copyright 2023 Gambit Interactive Media Limited – All Rights Reserved.

Manage Cookie Consent
We use technologies like cookies to store and/or access device information. Cookies are used for ads personalisation We do this to improve browsing experience as well as show personalized ads. Consenting to these technologies will allow us to process data such as browsing behavior or unique IDs on this site. Not consenting or withdrawing consent, may adversely affect certain features and functions.
Functional Always active
The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
Preferences
The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
Statistics
The technical storage or access that is used exclusively for statistical purposes. The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
Marketing
The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
Manage options Manage services Manage {vendor_count} vendors Read more about these purposes
View preferences
{title} {title} {title}
Go to mobile version
Welcome Back!

Sign in to your account

Lost your password?