We stand at the precipice of a gap of our own collective making, a gap that deepens and widens with every failure to address the root causes of our talent shortfall.
Art van Bodegraven was, among other roles, chief design officer for the DES Leadership Academy. He passed away on June 18, 2017. He will be greatly missed.
I've been increasingly dismayed by the much-heralded and little-resolved skills and experience shortfalls in The Great Supply Chain Management Race—the so-called talent gap.
The "gap" terminology obscures the depth and severity of the challenge. It's a chasm, a gaping crack in the infrastructure. We don't have enough warm bodies to perform the simplest execution tasks, with a further dropoff in adequate numbers when basic arithmetic and/or communication abilities are added to organizational expectations—and needs.
When higher skill levels are requirements for analysis, planning, coding, data management, and other such esoterica, the situation becomes downright embarrassing—and dangerously vulnerable in global competition. In this more demanding arena, we do a most commendable job of education and preparation, but we can scarcely hope to produce enough working talent to meet needs (especially when manufacturing and other sectors would poach our best and brightest without the merest twinge of conscience).
Of course, our managers at various levels are oblivious to factors of time and change, and what it takes to be effective in the 21st century, wedded as they are to discredited models of yesteryear. That old practices and shopworn tactics serve to drive off otherwise enthusiastic and engaged staff only makes things worse.
And our greatest deficiency remains, imho, the yawning abyss of the authentic leadership we crave and have little chance of finding. That shortfall creates a domino cascade of talent shortage throughout an organization.
HOOVERVILLE REDUX
Meanwhile, unemployment is pervasive enough that accounting trickeration is necessary to disguise that a pleasingly plump image is actually morbidly obese. The almost-always-ballyhooed unemployment rate is a pleasant fiction that has little genuine meaning or utility. It, for example, does not recognize the underemployed or the discouraged who no longer bother seeking employment. The portion of the population able to work that is actually working is a frail 62.7 percent and continues to drop.
Politicians, unable to restrain themselves, are what we might politely call nonspecific about creating new jobs, "well-paying jobs," that will restore American prosperity. What they don't talk about, and most likely are clueless about, is the reality that jobs have changed, in numbers to produce given quantities, in content, and in basic skills requirements. Steelmaking, for instance, now requires a few hundred people to make the same steel that took several thousand a generation or two ago.
TECHNOLOGY TO THE RESCUE?
We have all kinds of mobile, wearable, multicapable technologies to help us do our jobs better—faster, more accurately, and more transparently. In a somewhat static environment, this must translate to reduced, or more slowly growing, work forces.
The march of robotics is under way. Can some robotics applications actually add jobs, or a least avoid cutbacks? Sure. In healthy organizations with open needs, growth potential, and an appetite for investment in retraining. But in the larger case, I suspect, the Bean Counter Brigade is looking for, and rewarded for finding, ways to reduce costs, a code phrase for reducing headcount.
This desperate clinging to last-century paradigms is a refuge for those unable to innovate and motivate at a new-century pace. I fear that the dinosaurs are not going to wade into La Brea willingly and are likely to be with us, in uncomfortable numbers, for another generation (one hopes not two).
What will almost surely make this worse is the move to elevate minimum wages. Here's my not-always-popular position: Every adult working at a full-time job should be receiving a living wage. Part-time jobs should pay an hourly rate equivalent to a full-time living wage. Full-time is neither permanent nor year-round. Lower-wage "job lite" options should be available as learner positions for younger employees.
However, we define these things, the minimum wage is trending—fast—toward $15 per hour. Time to get real. A capable lift truck operator or a speedy, versatile order selector is worth more—lots more—than someone asking "Would you like fries with that?" But the industry has been paying execution staff at fast-food levels for a long time, with increases coming in response to competition for a diminished labor pool. The result? Rapidly rising wages in supply chain execution will make it even more attractive to pursue robotic and automated material handling solutions, pushing more experienced employees out on the street.
A GLIMPSE INTO A BRIEFLY ILLUMINATED DARK FUTURE
So, where does all this lead us? So few leaders that they can't spare themselves to lead the country for a while. Managers who have yet to master managing but are persuaded that they are leaders, to the detriment of people and enterprises. Highly rewarded and prized technogeek employees. Well-compensated staff, who have developed and maintain relevant skills. A few functionaries who excite their leaders by seeking, adopting, embracing, and even creating change as (or before) environments and requirements evolve—or erupt.
And then, the rest. An army, easy to stir to mindless action with time on their hands, limited skills, less knowledge of what it takes to be a part of a functioning society—and no money to do much with, save stock up on Kools or cannabis, try to keep up with Anheuser-Busch's production, and some vague notion that their plight is all the fault of Carlos Slim or an Ethiopian cab driver working two jobs to feed his family.
We stand at the precipice of a gap of our own collective making, a gap that deepens and widens with every failure to address root causes of our talent woes. A merit-based class system is nearing open class warfare, made increasingly more possible as the divide between haves, have nots, don't wants, and can't dos grows without much serious effort to realign those who might be salvageable, re-educate those without the most basic tools, and retrain those who have a usable foundation.
Those robots are going to be needing programming, maintenance, and repair. We all have a lot at stake in restoring balance within the economic ecosystem of the nation.
Penske said today that its facility in Channahon, Illinois, is now fully operational, and is predominantly powered by an onsite photovoltaic (PV) solar system, expected to generate roughly 80% of the building's energy needs at 200 KW capacity. Next, a Grand Rapids, Michigan, location will be also active in the coming months, and Penske's Linden, New Jersey, location is expected to go online in 2025.
And over the coming year, the Pennsylvania-based company will add seven more sites under its power purchase agreement with Sunrock Distributed Generation, retrofitting them with new PV solar systems which are expected to yield a total of roughly 600 KW of renewable energy. Those additional sites are all in California: Fresno, Hayward, La Mirada, National City, Riverside, San Diego, and San Leandro.
On average, four solar panel-powered Penske Truck Leasing facilities will generate an estimated 1-million-kilowatt hours (kWh) of renewable energy annually and will result in an emissions avoidance of 442 metric tons (MT) CO2e, which is equal to powering nearly 90 homes for one year.
"The initiative to install solar systems at our locations is a part of our company's LEED-certified facilities process," Ivet Taneva, Penske’s vice president of environmental affairs, said in a release. "Investing in solar has considerable economic impacts for our operations as well as the environmental benefits of further reducing emissions related to electricity use."
Overall, Penske Truck Leasing operates and maintains more than 437,000 vehicles and serves its customers from nearly 1,000 maintenance facilities and more than 2,500 truck rental locations across North America.
That challenge is one of the reasons that fewer shoppers overall are satisfied with their shopping experiences lately, Lincolnshire, Illinois-based Zebra said in its “17th Annual Global Shopper Study.”th Annual Global Shopper Study.” While 85% of shoppers last year were satisfied with both the in-store and online experiences, only 81% in 2024 are satisfied with the in-store experience and just 79% with online shopping.
In response, most retailers (78%) say they are investing in technology tools that can help both frontline workers and those watching operations from behind the scenes to minimize theft and loss, Zebra said.
Just 38% of retailers currently use AI-based prescriptive analytics for loss prevention, but a much larger 50% say they plan to use it in the next 1-3 years. That was followed by self-checkout cameras and sensors (45%), computer vision (46%), and RFID tags and readers (42%) that are planned for use within the next three years, specifically for loss prevention.
Those strategies could help improve the brick and mortar shopping experience, since 78% of shoppers say it’s annoying when products are locked up or secured within cases. Adding to that frustration is that it’s hard to find an associate while shopping in stores these days, according to 70% of consumers. In response, some just walk out; one in five shoppers has left a store without getting what they needed because a retail associate wasn’t available to help, an increase over the past two years.
The survey also identified additional frustrations faced by retailers and associates:
challenges with offering easy options for click-and-collect or returns, despite high shopper demand for them
the struggle to confirm current inventory and pricing
lingering labor shortages and increasing loss incidents, even as shoppers return to stores
“Many retailers are laying the groundwork to build a modern store experience,” Matt Guiste, Global Retail Technology Strategist, Zebra Technologies, said in a release. “They are investing in mobile and intelligent automation technologies to help inform operational decisions and enable associates to do the things that keep shoppers happy.”
The survey was administered online by Azure Knowledge Corporation and included 4,200 adult shoppers (age 18+), decision-makers, and associates, who replied to questions about the topics of shopper experience, device and technology usage, and delivery and fulfillment in store and online.
Supply chains are poised for accelerated adoption of mobile robots and drones as those technologies mature and companies focus on implementing artificial intelligence (AI) and automation across their logistics operations.
That’s according to data from Gartner’s Hype Cycle for Mobile Robots and Drones, released this week. The report shows that several mobile robotics technologies will mature over the next two to five years, and also identifies breakthrough and rising technologies set to have an impact further out.
Gartner’s Hype Cycle is a graphical depiction of a common pattern that arises with each new technology or innovation through five phases of maturity and adoption. Chief supply chain officers can use the research to find robotic solutions that meet their needs, according to Gartner.
Gartner, Inc.
The mobile robotic technologies set to mature over the next two to five years are: collaborative in-aisle picking robots, light-cargo delivery robots, autonomous mobile robots (AMRs) for transport, mobile robotic goods-to-person systems, and robotic cube storage systems.
“As organizations look to further improve logistic operations, support automation and augment humans in various jobs, supply chain leaders have turned to mobile robots to support their strategy,” Dwight Klappich, VP analyst and Gartner fellow with the Gartner Supply Chain practice, said in a statement announcing the findings. “Mobile robots are continuing to evolve, becoming more powerful and practical, thus paving the way for continued technology innovation.”
Technologies that are on the rise include autonomous data collection and inspection technologies, which are expected to deliver benefits over the next five to 10 years. These include solutions like indoor-flying drones, which utilize AI-enabled vision or RFID to help with time-consuming inventory management, inspection, and surveillance tasks. The technology can also alleviate safety concerns that arise in warehouses, such as workers counting inventory in hard-to-reach places.
“Automating labor-intensive tasks can provide notable benefits,” Klappich said. “With AI capabilities increasingly embedded in mobile robots and drones, the potential to function unaided and adapt to environments will make it possible to support a growing number of use cases.”
Humanoid robots—which resemble the human body in shape—are among the technologies in the breakthrough stage, meaning that they are expected to have a transformational effect on supply chains, but their mainstream adoption could take 10 years or more.
“For supply chains with high-volume and predictable processes, humanoid robots have the potential to enhance or supplement the supply chain workforce,” Klappich also said. “However, while the pace of innovation is encouraging, the industry is years away from general-purpose humanoid robots being used in more complex retail and industrial environments.”
An eight-year veteran of the Georgia company, Hakala will begin his new role on January 1, when the current CEO, Tero Peltomäki, will retire after a long and noteworthy career, continuing as a member of the board of directors, Cimcorp said.
According to Hakala, automation is an inevitable course in Cimcorp’s core sectors, and the company’s end-to-end capabilities will be crucial for clients’ success. In the past, both the tire and grocery retail industries have automated individual machines and parts of their operations. In recent years, automation has spread throughout the facilities, as companies want to be able to see their entire operation with one look, utilize analytics, optimize processes, and lead with data.
“Cimcorp has always grown by starting small in the new business segments. We’ve created one solution first, and as we’ve gained more knowledge of our clients’ challenges, we have been able to expand,” Hakala said in a release. “In every phase, we aim to bring our experience to the table and even challenge the client’s initial perspective. We are interested in what our client does and how it could be done better and more efficiently.”
Although many shoppers will
return to physical stores this holiday season, online shopping remains a driving force behind peak-season shipping challenges, especially when it comes to the last mile. Consumers still want fast, free shipping if they can get it—without any delays or disruptions to their holiday deliveries.
One disruptor that gets a lot of headlines this time of year is package theft—committed by so-called “porch pirates.” These are thieves who snatch parcels from front stairs, side porches, and driveways in neighborhoods across the country. The problem adds up to billions of dollars in stolen merchandise each year—not to mention headaches for shippers, parcel delivery companies, and, of course, consumers.
Given the scope of the problem, it’s no wonder online shoppers are worried about it—especially during holiday season. In its annual report on package theft trends, released in October, the
security-focused research and product review firm Security.org found that:
17% of Americans had a package stolen in the past three months, with the typical stolen parcel worth about $50. Some 44% said they’d had a package taken at some point in their life.
Package thieves poached more than $8 billion in merchandise over the past year.
18% of adults said they’d had a package stolen that contained a gift for someone else.
Ahead of the holiday season, 88% of adults said they were worried about theft of online purchases, with more than a quarter saying they were “extremely” or “very” concerned.
But it doesn’t have to be that way. There are some low-tech steps consumers can take to help guard against porch piracy along with some high-tech logistics-focused innovations in the pipeline that can protect deliveries in the last mile. First, some common-sense advice on avoiding package theft from the Security.org research:
Install a doorbell camera, which is a relatively low-cost deterrent.
Bring packages inside promptly or arrange to have them delivered to a secure location if no one will be at home.
Consider using click-and-collect options when possible.
If the retailer allows you to specify delivery-time windows, consider doing so to avoid having packages sit outside for extended periods.
These steps may sound basic, but they are by no means a given: Fewer than half of Americans consider the timing of deliveries, less than a third have a doorbell camera, and nearly one-fifth take no precautions to prevent package theft, according to the research.
Tech vendors are stepping up to help. One example is
Arrive AI, which develops smart mailboxes for last-mile delivery and pickup. The company says its Mailbox-as-a-Service (MaaS) platform will revolutionize the last mile by building a network of parcel-storage boxes that can be accessed by people, drones, or robots. In a nutshell: Packages are placed into a weatherproof box via drone, robot, driverless carrier, or traditional delivery method—and no one other than the rightful owner can access it.
Although the platform is still in development, the company already offers solutions for business clients looking to secure high-value deliveries and sensitive shipments. The health-care industry is one example: Arrive AI offers secure drone delivery of medical supplies, prescriptions, lab samples, and the like to hospitals and other health-care facilities. The platform provides real-time tracking, chain-of-custody controls, and theft-prevention features. Arrive is conducting short-term deployments between logistics companies and health-care partners now, according to a company spokesperson.
The MaaS solution has a pretty high cool factor. And the common-sense best practices just seem like solid advice. Maybe combining both is the key to a more secure last mile—during peak shipping season and throughout the year as well.