There has been a shortage of labor across business sectors – in part due to the continuation of federal assistance through unemployment benefits as well as hesitation due to safety and health concerns. However, when these payments run out and safety concerns begin to subside, there will be a flood of individuals looking to return to the workforce.
I recently sat down with Robert Bowman at SupplyChainBrain to discuss how companies have changed their operations to adapt to labor shortages and mitigate rising costs.
Specifically, when looking at companies that rely on a high level of customer service, you see minimum wage increases. Executives are doing this to ensure they maintain higher levels of service as well as attract and retain employees. Other companies, particularly in the supply chain sectors, are opting for further automation and robotics to reduce their need for human labor.
Some U.S. manufacturers are considering reshoring their labor workforce, which will provide more jobs in the U.S. However, the trend towards further automation and the use of robots will result in smaller sized teams.
Labor isn’t the only cost businesses are seeing increase, other costs of the supply chain, such as raw materials, packaging and shipping are also increasing. In order to mitigate these increasing costs, companies need to prioritize their supply chain management and procurement practices.
Watch my full interview with SupplyChainBrain below to learn more.