8 Commonly Overlooked Maintenance Tasks in Modern Truck Fleets

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8 Commonly Overlooked Maintenance Tasks in Modern Truck Fleets

February 22nd, 2022 Dylan Berger Leave a comment

Maintenance is a crucial part of managing any fleet. Professionals know this going into the industry, and regular repair schedules are a standard part of most fleets’ operations, but many may not be thorough enough.

While most fleet managers understand the importance of changing their oil and rotating their tires, other maintenance tasks go overlooked. Here are eight commonly overlooked processes that should have a spot in every maintenance checklist.

1. Checking Brake Pads

Checking brake pads to ensure they have proper thickness is a standard part of many maintenance checks. However, commercial fleets often don’t check them frequently enough.

Since long-haul trucks are 20 to 30 times heavier than average passenger vehicles, they require far more force to stop. As a result, their brake pads wear out faster than even large consumer vehicles, requiring more frequent replacements. Many brake pads can also be difficult to see on a vehicle with multiple axles, so it’s easy to skim over this process.

Commercial fleet repair professionals frequently see truck brakes worn down to the brake caliper. Considering how much costlier caliper replacements are compared to brake pads, fleets should check their brakes more often.

2. Battery Testing

Another maintenance task that often goes overlooked in commercial fleets is battery testing. While most maintenance stops include checking to ensure electronic components are working correctly, they don’t check the battery itself. This is insufficient, as there are often no external warning signs of battery life draining until it’s entirely dead.

While truck batteries last several years, long-haul shipments can take their toll on this equipment faster than some may expect. For example, vibrations break down internal battery components, so traveling over miles of roads in poor condition will deteriorate batteries. To avoid any unplanned downtime, every maintenance check should involve testing batteries and, if necessary, replacing them.

3. Considering Idle Time

Any fleet manager or driver knows the importance of changing their trucks’ oil. However, many fleets may take too long to check and change their oil because they don’t consider truck idling time.

While newer vehicles can go 7,500 to 10,000 miles between oil changes, driving isn’t the only thing that works the engine. Spending a significant amount of time idling, as most commercial trucks do, also wears out the engine and its oil. Despite this degradation, many fleets overlook it because they go by what the odometer says, which doesn’t account for idling.

To account for idle time, fleets should change their oil more frequently than they would normally. Frequent checks can help determine when oil changes should happen. Internet of things (IoT) sensors can provide even more insight, alerting drivers and managers when to change their oil.

4. Preventing Corrosion on Underride Guards

Another maintenance task that’s easy to overlook is checking for rust on underride prevention guards. Since these parts don’t actively affect a truck’s performance, they often don’t come to mind when inspecting components for corrosion. Despite that, enough corrosion could make them weak, ultimately not preventing underride accidents if a crash occurs.

Workers should always inspect underride guards closely to ensure they’re not corroding, including looking at their underside and back. If there’s some rust, workers can use a biodegradable, non-acid-based rust remover. Acid removers can be expensive and cause disposal problems, so it’s best to avoid them.

5. Refrigerated Trailer Maintenance

Fleets that use refrigerated trailers should also be careful not to overlook their refrigeration systems. If these trailers start to fail, they could lead to spoiled products, costing companies thousands and costing fleets their reputations. This maintenance can also be easy to forget about since refrigerated trailers carry unique concerns that may not be immediately apparent.

Moisture can break down insulating materials faster than normal, so teams must check for leaks and moisture inside the trailer. Similarly, they should look for any punctures or tears in the walls and ensure the trailer doors seal properly. IoT temperature sensors can help inform these inspections, alerting workers of irregular fluctuations or rising internal temperatures.

6. Testing Collision Sensors

Many newer trucks come with sensors to detect potential collisions and keep drivers aware of their surroundings. Things like automatic braking and lane departure warning have significantly reduced collisions, so they’re becoming increasingly popular. As drivers rely more heavily on these systems, fleets must ensure they work properly.

The sensors themselves are the most important part to check with these systems. If they get dirty, misaligned or broken, they may not detect what they’re supposed to accurately, potentially leading to crashes. Consequently, every maintenance stop should include checking these sensors to ensure they’re safe.

Cleaning sensors and cameras will help them achieve maximum accuracy. Workers can also pull diagnostic trouble codes (DTCs) from the truck’s onboard computer to see if there are any issues.

7. Looking for Leaks in Fluid Hoses

Most maintenance stops involve checking all of a vehicle’s fluids. Part of that inspection that may go overlooked is checking the fluid hoses, not just the reservoirs. A truck may have plenty of coolant, wiper fluid, oil or other fluids, but a dipstick test may not reveal smaller leaks in the hoses that could cause problems down the line.

Fluid checks should go beyond measuring levels with a dipstick. Even if these tests reveal a reservoir is full, maintenance workers should check under the truck to see if any hoses have leaks. If they do, they should replace them immediately, as even a small leak could cause substantial problems after a long drive.

8. Downloading Software Updates

Today’s trucks are technological marvels featuring a wide array of digital technologies. Since this abundance of technology is a relatively new trend, many fleets forget that proper maintenance now includes some IT considerations. More specifically, fleets must ensure all of their trucks’ onboard software is up-to-date.

Some devices may have an option to automatically download updates, which fleets should enable. If that’s not available, drivers should regularly check for updates and download them as soon as they’re available. If one driver notices a new update, they should inform the whole fleet to everyone can ensure their trucks feature the latest software.

Since 86% of commercial fleets today use telematics, they should apply this to these devices as well. Any IoT devices need regular software updates to stay safe from cybercrime and reach optimal performance.

Don’t Overlook These Maintenance Steps

Maintenance is one of the most important parts of running a fleet. While these eight steps are not the only parts of a sufficient maintenance stop, many fleet managers overlook them, leading to unnecessarily high costs and risks. Incorporating these tasks into maintenance schedules will keep fleets efficient and safe.

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Preparing to De-winterize Your Truck Fleet: 8 Important Steps

February 19th, 2022 Dylan Berger Leave a comment

Experienced fleet owners understand the importance of winterizing trucks when cold weather comes around. However, de-winterization often doesn’t get the same amount of press. Despite being a crucial step, many fleets may overlook de-winterization or rush the process.

Maintaining efficiency and minimizing maintenance costs means adapting to all weather conditions, not just the cold. Here are eight important steps to de-winterize a truck fleet.

1. Inspect for Damage

The first step in the de-winterization process is to check for any damage that might’ve occurred in the winter. As ice accumulates and then melts, it could seep into a truck’s metal parts and cause rust. De-icing chemicals on the road have a similar effect, causing $15.4 billion in rust damage over the last five years.

As the weather starts to warm, fleets should inspect their vehicles for damage like rust, chipping paint, and excess wear. Many of these hazards can be small and easily overlookable when they’re not paid attention to, but they’ll lead to more significant damage. Looking for and addressing winter damage early can help prevent larger, costlier breakdowns.

2. Check Tire Pressure and Treads

As fleets inspect their trucks, they should also address the tires. Tires will lose a significant amount of air pressure in colder weather as the air condenses. As the weather starts to warm, this could lead to severely underinflated tires or uneven inflation.

Fleets will likely have to inflate their tires more frequently as the weather changes than they would normally. Anticipating this shift can help fleets adapt their maintenance schedules to prevent uneven wear from underinflated tires.

While workers inspect truck tires, they should also pay attention to the treads. The rubber could’ve hardened in the cold, leading it to wear down faster or even crack. If fleets don’t check for this damage and replace any worn-out or cracked tires, it could cause serious accidents.

3. Look for Animals and Nests

One part of de-winterization that can easily go overlooked is checking undercarriages and engines for animals. As temperatures drop, small animals sometimes shelter in vehicles to stay warm. If they stay hidden, they could cause serious damage to a truck and may get seriously injured in the moving parts.

Fleets should inspect truck engines, wheel wells, and undercarriages for evidence of animals. If they find any, workers can get rid of them by making loud noises on the truck to scare them away or enticing them out with food. These checks should happen regularly throughout the winter, especially if some vehicles lie dormant, but they’re a critical part of de-winterization, too.

4. Change Oil and Check Other Fluids

A more obvious but still crucial de-winterization step is checking and changing the trucks’ fluids. Lighter fluids don’t thicken as easily, so many fleets switch to lighter oils in the winter. While most drivers know to make this switch, it’s important to change back to a heavier oil as the weather warms

If trucks used 0W-20 in the winter, they could switch to 5W-20 as winter ends to ensure proper lubrication. This switch shouldn’t add any time to regular maintenance schedules since fleets should already perform regular oil changes.

This step applies to other fluids, too. Fleets should check their wiper fluid, coolant, power steering fluid, brake fluid, and – if any trucks have automatic transmissions – transmission fluid. Even if fleets don’t need to change them, they may need to replenish them.

5. Wash the Exterior

Washing fleet vehicles may seem unimportant at first, as their utility is far more important than their appearance. However, washing should be a standard part of de-winterizing fleets, not to get rid of dirt but salt and de-icing chemicals.

Since more than 70% of roads in the U.S. are in snowy regions, salt and other de-icers have likely accumulated through the winter. These materials can corrode metal parts if they sit on the vehicle for too long. Fleets can avoid breakdowns and high maintenance costs simply by washing these materials off their trucks.

Some fleets may even want to wax their trucks. While this step isn’t necessary, it can protect the trucks’ paint and prevent early corrosion.

6. Align and Balance the Wheels

As trucks stop for de-winterizing maintenance, fleets should align and balance their wheels. Fleets likely already include wheel alignments and balancing in their regular maintenance schedules, but it should be a part of de-winterization regardless.

Water that seeps into cracks in the road freezes and expands in the winter, creating more cracks and potholes. As a result, road conditions during the colder months tend to take a larger toll on truck wheels. Aligning and rebalancing them as the weather starts to warm will help avoid damage from these poor conditions, minimizing ongoing maintenance costs.

7. Check the Batteries

Another part of the truck to inspect is the battery. Batteries produce less current at low temperatures, so they have to work harder to deliver the same power in the cold. Consequently, they’ll wear out faster in the winter, so fleets should check to see if they need to change them as winter ends.

De-winterization checklists should include a battery voltage test. This will reveal if a truck’s battery has depleted faster than expected, and fleets can adjust their maintenance schedules accordingly. If batteries have seen substantial damage or drainage, it’s best to replace them ahead of time to avoid complications down the line.

8. Replace the Wiper Blades

Finally, fleets should replace all trucks’ wiper blades as the winter subsides. The rubber on these parts becomes hard in the cold, causing them to wear down and crack faster. Replacing them before heavy rains start will ensure this damage doesn’t cause more significant issues.

Even if wiper blades seem fine, it’s best to replace them during de-winterization downtime. That way, no cracks or other damage invisible to the naked eye threaten the wipers’ integrity down the line. It may also be a good idea to supply drivers with an extra pair of wiper blades in case they encounter any issues while driving.

De-winterization Is as Important as Winterization

De-winterization may not see as much conversation as winterization, but it’s just as important. If fleets overlook these maintenance steps, lingering issues from the winter or improper preparation could create larger issues. They could endanger drivers or lead to more expensive repairs in the future.

Every fleet must include de-winterization as part of its maintenance schedule. These eight steps aren’t the only things that these processes can cover, but they provide a baseline. Without these considerations, de-winterization will be insufficient.

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Successfully Financing a Truck Fleet: 7 Strategies

February 18th, 2022 Dylan Berger Leave a comment

Getting any business off the ground can be challenging, and truck fleets carry unique obstacles. The average cost of a new vehicle hit a record high in late 2021, and long-haul trucks were already expensive. High insurance rates and maintenance needs further add to the list of expenses.

Thankfully, new fleet owners don’t need to pay for all these factors upfront. Several financing options exist, and which one is the best depends on a company’s specific situation. Here’s a look at seven strategies and who they benefit the most.

1. Bank Loans

The most straightforward financing option for truck fleets is to get a loan from the bank. Large banks may seem intimidating, but many partner with the Small Business Association (SBA) to offer more accessible loans for startups. SBA-backed loans can reach up to $5.5 million and often come with lower payments and fairer terms.

Fleet owners should understand that loan terms vary widely among banks, even with SBA-backed loans. Looking into and comparing available options is a crucial part of the process.

Bank loans may offer some of the most capital, but their approval processes are typically longer and stricter. As a result, they’re best for business owners with good credit who can afford to wait months before getting the money.

2. Alternative Lenders

Institutions other than banks and credit unions offer business loans. Alternative lenders provide rates comparable to most banks and often feature faster approval processes.

Many alternative lending companies offer industry-specific loans that may fit fleets’ unique needs better than banks. Some of these also feature more flexible terms and payment options. However, the amount of capital these loans provide is often not as high as what fleets would get from a bank.

Alternative lenders are typically smaller companies, so they may be more risk-aversive than traditional institutions. Consequently, they’re often better for fleet owners with high credit scores. Some may target those with poor credit, but it’s important to inspect these terms closely to make sure they’re not misleading.

3. Direct Truck Loans

Another loan option is to work with a direct trucking lender. These companies specialize in offering loans to commercial fleets, so they have a more intimate understanding of the industry and its requirements.

Fleet financing companies often have decades of experience, so they’ll be able to understand unique situations. Unlike traditional financial institutions, they lend their own money, making them more flexible than banks. At the same time, that means they may also offer less competitive interest rates.

Direct truck loans may be best for fleets with unique concerns or poor credit histories. They may be a reliable option for all companies, as long as their rates hold up against the competition. Be sure to compare them to other options to find the best deal.

4. Leasing

Fleets don’t have to buy their equipment outright, either. Leasing trucks instead of buying them can be a helpful way to finance a fleet since this entails smaller upfront payments. It also means companies can upgrade their vehicles quickly and with minimal investment.

Fleets can also buy out of their leases once they become comfortable with their vehicles and the current market. This may come with high costs depending on the leasing term, but refinancing options can help.

Leasing is particularly attractive to new players in the industry, as it provides quick, affordable access to top-of-the-line equipment. However, buying trucks outright may be better for companies that want more flexibility or control.

5. Franchising

Truck fleets could also adopt a franchise business model. In these arrangements, owner-operators pay a franchising fee and a portion of their profits but operate with relative independence.

The most significant advantage of this business model is that it reduces costs. Owner-operators must pay their own fuel bills and take care of maintenance. However, that also means franchisors have less control over vehicle types, maintenance and driving regulations.

Most owner-operators prefer to work with an established name, so startup fleets may not succeed with this model. Profits may be slimmer, too, as franchisors only receive a portion of franchisees’ revenue. Still, it can be an attractive option for fleets that have been in the industry for a while. It may be especially appealing for those that are looking to expand.

6. Invoice Factoring

Loans, equipment costs and business models aren’t the only ways to improve a fleet’s finances. Collecting outstanding payments can be a challenge for trucking companies, especially when they’re new. Payment for trucking invoices takes 36.9 days on average, limiting fleets’ financial mobility. Invoice factoring streamlines the process.

Factoring brokers act as an intermediary between clients and fleet owners. The broker will give fleets an advance on their payment, taking a fee of around 3%-5% in return. This lowers fleets’ overall income, but it can provide almost instant payment, helping them address expenses sooner.

Factoring can be particularly valuable to new fleets, as it enables more fiscal mobility. Faster payments allow companies can expand more rapidly. However, the associated fees may limit this growth.

7. Quick Pay

Quick pay is a similar solution that many brokers offer. Like factoring, this provides faster payments, but it comes from load brokers themselves, not financial services companies.

Choosing this option often means brokers will pay fleets in a week or less instead of the standard 37 days. That’s not as immediate as factoring, but it’s far faster than traditional payment options and provides similar mobility benefits. Quick pay also usually entails a small fee, similar to what a factoring company would charge.

Quick pay removes the intermediaries of factoring, but it doesn’t offer many advantages beyond that. Fleets should compare their options to see which offers the best rates for their specific situation.

Truck Fleets Have Many Financing Options

Financing a truck fleet can be intimidating at first, considering the high upfront and operational costs. These expenses can be high, but the abundance of options in the market today makes them far more approachable. Fleets should determine their budget and compare their available local opportunities to find the best way forward.

Fleets can use one or more of these strategies to become mobile and start serving clients with minimal expenses. They can then fully capitalize on this long-standing and growing industry.

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Reducing Incidents of Impaired Driving in the Trucking Industry

February 12th, 2022 Dylan Berger Leave a comment

Trucking can be a dangerous profession, and impaired driving makes it needlessly more so. Drivers under the influence of alcohol or drugs are a danger in any vehicle, but especially in a 17-ton semi-truck. Fleet managers must reduce impaired driving incidents in their fleets in light of this danger.

No fleet manager would argue against the need to eliminate impaired driving incidents. However, the path toward that goal can be less clear. The dangers are immediately evident, but it can be harder to determine which remediation strategies are most effective.

The State of Impaired Driving in Trucking

Thankfully, drunk driving incidents are far less common in truck drivers than among ordinary passenger vehicles. While 20.6% of drivers in passenger cars involved in fatal crashes were above the legal limit in 2017, just 2.5% of truck drivers were. However, that figure rises to 3.6% when considering truck drivers who had alcohol in their system but weren’t above the legal limit.

Drug use is a more common factor in impaired driving among truck drivers. Over-the-counter medication accounted for 17% of fatal and injury crashes among commercial drivers. While many of these medicines aren’t inherently dangerous, they may make drivers drowsy or unattentive, putting them at risk.

Impaired driving may not be a frequent issue for fleets, but considering how dangerous it is, just one incident is one too many. With that in mind, here are five ways fleet managers can reduce these incidents.

Implement Strict Policies

One of the most effective methods is also one of the most straightforward. Stricter impaired driving policies discourage these incidents, as heavier consequences provide more motivation to avoid unsafe behavior. Drunk driving laws reflect this, as DUI fatalities have trended downward as regulations have become stricter.

Fleet managers can apply this concept by establishing harsher penalties for incidents surrounding impaired driving. Ideally, these policies should be tighter than local laws, imposing sanctions for lower blood alcohol content (BAC) levels. Actions that break the law should result in termination, and smaller offenses should still carry consequences like temporary suspensions.

It’s also important to formalize these policies and communicate them early and often. The more drivers are aware of these actions and their penalties, the less likely they will engage in them. Management should also enforce these rules evenly to solidify their stance on their gravity.

Install Ignition Interlocks

Technology can also be a helpful resource in reducing impaired driving incidents. The most useful technology fleets can use is ignition interlocks, which require drivers to pass a BAC test to start their engines. Studies show that programs reduce repeat drunk driving offenses by 50% to 90% after installing these devices.

Ignition interlocks can take several forms, too. Some use traditional BAC tests that drivers blow into, and these may provide the most accurate readings. Other systems use passive sensors that detect alcohol vapors in the air. These are less disruptive but may not be as precise.

Fleet managers should also use ignition interlocks to measure data and track trends related to impaired driving. Even if someone is below the legal limit and can thus drive, their readings can show trends in alcohol consumption. Managers can then notice when a driver may be at risk and take appropriate intervention steps.

Monitor Impairment Risk in Hiring

Fleet operators can also reduce impaired driving by looking for risk signals in the hiring process. Hiring managers should perform background checks to look for any past impaired driving incidents. This should apply to more than just DUIs, including crashes where alcohol was present but below legal limits.

Past driving behavior is often a reliable indicator of how someone will act in the future. One study found that 20.7% of truck drivers involved in fatal crashes had a record of previous accidents. Past incidents of drug and alcohol use could likewise make an applicant more at-risk of driving while impaired.

Hiring managers should ask applicants about their history if any crash or substance abuse-related records come up. Some drivers may have made substantial strides and improved from past mistakes. Where fleets draw the line is up to the individual company’s discretion and ability to accept risk.

Improve Education

It can also help to ensure employees understand the risks of impaired driving. Drivers are likely already aware that they shouldn’t drive drunk but may feel like having a few drinks before driving isn’t a big deal. Fleet managers should educate drivers on how dangerous this can be to encourage safer behavior.

These sessions should focus on the less obvious factors, such as over-the-counter medications causing drowsiness. Point to figures like how BAC levels as low as 0.015% can impair hand-eye coordination by 20%. It may also help to stress how these factors impact the drivers’ personal safety to make it more resonant.

These training sessions should occur during onboarding and at regular intervals after. Educating employees and offering the latest facts and statistics at least once annually can help them retain this information. When they better understand the risks, they’ll be less likely to engage in dangerous behavior.

Minimize Related Risk Factors

Fleet managers can avoid impaired driving incidents by preventing situations that lead to them. Most drivers probably won’t drink on the job, but some circumstances could change that.

Professional drivers are especially vulnerable to having mental health issues like stress. This could lead them to drink or take medication when they otherwise wouldn’t, leading to impaired driving. Fleet managers can mitigate this risk by reducing on-the-job stress.

Improved route planning can help by making drivers feel less rushed, and keeping them informed of any changes has similar effects. Flexible schedules can also reduce stress by making it easier to maintain a healthy work-life balance. Fleet managers could also survey their drivers to see what would help them feel less strained, reducing the risk of impaired driving.

Reducing Impaired Driving Is a Must for Fleet Managers

Impaired driving may seem like a straightforward issue at first, but it can be multifaceted. Likewise, multiple prevention strategies should be used to attain the greatest risk reduction.

Fleet managers that employ these five steps can create safer operations for their drivers and others on the road. They can then prevent injury, ensure timely deliveries and avoid hefty legal consequences.

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Fortifying the Supply Chain Against Seasonal Challenges: 7 Scenarios

February 9th, 2022 Dylan Berger Leave a comment

As the seasons change, so do the risks businesses face. That’s true of any industry, but these seasonal challenges can be even more impactful in a sector as complex and interconnected as the supply chain.

Resilience is key to success in an increasingly competitive industry. Supply chains must anticipate and prepare for shifting seasonal obstacles to become as resilient as possible. With that in mind, here are seven common seasonal scenarios supply chains should plan for.

1. Demand Shifts

One of the most consistent seasonal challenges supply chains face is shifting demand. For many logistics companies, like UPS, peak season lies between November and January, while others are busier in the summer. Regardless of when it occurs, supply chains face uneven demand throughout the year, which can be disruptive.

Failure to adapt to these shifts quickly or accurately can result in shortages, delays or surpluses. The solution to this challenge is to promote more transparency throughout the supply chain and its partners. Logistics companies must communicate quickly and thoroughly with their clients and vice versa to reveal demand shifts as they occur.

Data analytics can help predict future seasonal demand shifts based on historical trends. Supply chains can utilize Internet of Things (IoT) sensors to gather this data and predictive analytics algorithms to analyze it and stay on top of these changes.

2. Extreme Temperatures

Another seasonal challenge supply chains must account for is extreme temperatures in the winter and summer. Heat and cold add urgency to operations by endangering sensitive shipments and raising maintenance concerns.

Since most trailers aren’t temperature-controlled, extreme cold and heat could damage products if they take too long to ship. Logistics companies can mitigate this risk by prioritizing time-sensitive shipments like these and employing climate-controlled trailers. IoT trackers can help monitor product health to inform any needed route changes, which is especially helpful in food supply chains.

Supply chain organizations must also ensure all vehicles meet high maintenance standards as temperatures shift. Extreme heat and cold take a toll on trucks, so businesses may have to schedule upkeep more often to prevent breakdowns.

3. High Rainfall and Flooding

Supply chains may have to deal with high rainfall in some areas during spring and summer. This can make road transportation risky, limiting drivers’ visibility and reducing trucks’ grip on the road. It can also lead to flooding in extreme cases, further delaying shipments and damaging goods.

Logistics companies must ensure they train drivers on how to be safe in the rain. Telematics systems can help monitor speed and behavior to enforce driving policies. Supply chain managers can also incorporate weather analytics into their route planning to help drivers avoid heavy rain if possible.

Supply chains with locations near coasts, lakes or rivers should assess their flooding risk. Facilities in high-risk areas should install early warning systems and flood barriers.

4. Winter Storms

Winter storms bring snow and ice, and these conditions can also threaten supply chains. Ice will expand inside cracks in the road, creating potholes and making roads slippery, and snow may limit air travel.

Like with many weather conditions, winter storm preparedness starts with monitoring. Supply chains that see a storm approaching should develop a contingency plan if one route becomes inaccessible. Companies may need to ship items from a different warehouse as roads and airports shut down.

Communication is also essential. Every point along the logistics network should communicate with others about developing road conditions and incoming storms. That allows supply chains to respond faster to inclement weather.

5. Increased Traffic

Some seasonal challenges have more to do with behavior trends than weather threats. Increasing traffic in the warmer months can be an obstacle since 71.6% of all freight in the U.S. travels by truck. Ground shipments will likely take longer to reach their destination, and vehicles may face more hazards from other drivers.

Most traffic peaks occur in warmer months, with August consistently featuring the most miles traveled and July falling close behind. Supply chain organizations should prepare for increased transit in these months and give themselves more time for road shipments than usual. Adjusting shipment methods to prefer shorter routes can also help.

A significant portion of addressing traffic delays is managing clients’ expectations. Logistics providers may not be able to deliver on quick shipment times, so they shouldn’t promise them during peak months.

6. Fluctuating Workforces

The supply chain industry faces a fluctuating workforce throughout the year. Some months may be more challenging to find workers than others, making expansion or adjusting to meet seasonal demands more difficult.

The number of young people looking for work increases dramatically between April and July as schools and colleges let out. These may be the best times of year for supply chains to hire new workers, but they may struggle to acquire them in the fall by comparison. Understanding the context behind these shifts can inform more effective hiring decisions.

Seasonal availability may increase in the summer, but if supply chains want permanent workers, they should favor new college graduates. Hiring in the summer will give companies a broader pool of applicants to choose from, making it easier to expand.

7. Shifting Maintenance Needs

Equipment maintenance needs will also shift between seasons. Proactive maintenance is essential any time of year, but different components will wear at varying speeds depending on the weather. Understanding these uneven repair needs can help companies plan more effective maintenance schedules.

For example, dirt, insects and other contaminants may accumulate in truck engines faster during the summer. Consequently, logistics companies may have to schedule oil and filter changes more frequently in the warmer months. Similarly, since vehicle batteries consume twice as much power to start in the cold, battery checks may have to be more frequent in the winter.

Supply chain organizations should review these repair needs to create maintenance schedules that vary between seasons. Using IoT devices to enable predictive maintenance, which alerts workers to repair concerns in real-time, may be even more effective. That way, companies can address issues as they become a concern but before they become a bigger problem.

Create a Supply Chain for all Seasons

Changing weather and shifting human behavior can challenge supply chains if they don’t prepare for it. However, if logistics companies understand how their obstacles change throughout the year, they can become as resilient as possible.

These seven scenarios are not the only seasonal challenges supply chains may face, but they are common threats. Businesses that prepare to mitigate these obstacles ahead of time can maintain peak efficiency regardless of the season.

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How to Make Supply Chain Employees Feel More Invested in Their Work

January 18th, 2022 Dylan Berger Leave a comment

Supply chain operations typically involve a lot of long hours and repetitive work. That can make it difficult for employees to feel invested in their jobs, leading to errors, lower productivity and burnout.

If supply chains want to optimize their operations, they can’t overlook employee investment. Here are eight ways that management can encourage their employees to invest more in their work.

1. Help Workers Reach Their Own Goals

One of the best ways to get workers invested in the company is to invest in them first. Management should start by helping employees define and pursue their personal professional goals. This will show that the company cares about their development and is willing to put effort into it, encouraging reciprocation.

This process starts with talking with individual employees to help quantify their specific goals. Studies show that those with defined goals are ten times more likely to succeed than those without them. After that, management can create progress charts to monitor growth, encouraging hard work from employees and pushing them to their full potential.

As workers strive toward their individual goals, they’ll become more invested in their day-to-day work. The company as a whole will benefit as a result.

2. Provide Paths for Upward Mobility

Another crucial factor for employee investment is career advancement opportunities. Just 29% of surveyed employees say they’re satisfied with their workplace’s opportunities for career advancement. If workers don’t have anything more to reach for, there’s not much reason for them to invest heavily in their performance.

By contrast, if there are plenty of paths for upward mobility, employees will have the motivation to work harder. Supply chain organizations can promote from within rather than finding outside hires for upper-level positions. That way, workers will know that they can work their way up, encouraging them to invest in the business.

3. Enable Lateral Movement

In that same vein, supply chain organizations should also enable lateral movement. In addition to being able to move upward, workers should be able to change areas or departments. This will help keep satisfied, productive employees if they decide they want a career change or to apply new skills.

Some workers may start to feel burned out in their current role but have skills and interests that apply to another. Letting them change jobs to work in another department could help them find work within the company that compels them. When employees can find the role that fits them the best, they’ll invest more in their job.

4. Reward Investment

Some strategies to help supply chain employees feel more invested are remarkably straightforward. By rewarding those who invest more heavily in their work, employers can motivate employees to do so. Management should establish a system for rewarding hard work, such as productivity bonuses or an employee of the month scheme.

Monetary incentives are particularly powerful, but they’re not necessary if they’re outside a company’s budget. In one survey, 37% of workers said that more personal recognition would drive them to produce better work more often. Recognizing professional and personal achievements, especially in front of others, can provide the encouragement employees need to feel invested.

5. Be Charitable

Another way to help employees feel more invested is to create a company spirit that they want to invest in. If employees can see how their work contributes to a cause they care about, they’ll be more willing to put more into it. Supply chain businesses can foster this by donating to charities or helping local organizations provide community services.

It’s important to ensure these efforts go beyond one-time actions. They should be ongoing, in-depth initiatives so workers know they’re contributing to meaningful change, not just a publicity stunt. For example, some organizations donate profits to education departments, as well as partner with education organizations. This broader but still unified scope helps make a more substantial impact.

6. Be Sustainable

Another way that companies can help employees contribute to things they care about is through sustainability. Since transportation is responsible for almost a third of all greenhouse gas emissions, supply chains often have considerable carbon footprints. Embracing sustainability initiatives can help make up for this and encourage more investment from employees.

Investing in electric vehicles or renewable energy infrastructure can help supply chain companies become more sustainable. As these efforts grow, workers will see that their efforts within the company contribute to a greener future. Publishing sustainability goals and achievements will help raise awareness and drive further investment from employees.

If possible, try to tie these directly to workers’ achievements. That way, employees will have more concrete encouragement that their actions lead to more eco-friendliness.

7. Organize Team Building Events

Even if companies follow other steps, employees will struggle to feel invested if they feel distant from their coworkers. Businesses can fix that issue by planning regular social events to help build a more communal spirit. When employees feel closer to their coworkers, they’ll feel more engaged at work, driving more investment.

These activities don’t have to look like traditional corporate team-building exercises. They can be as simple as an after-hours party where management provides food, drinks and activities. The more casual and less work-related these feel, the better, as that will help develop closer, friendlier relationships.

8. Listen to Employees

Finally, supply chain organizations should seek employees’ advice on what would help them feel more invested. If management doesn’t take the time to listen to workers’ feedback, the employees will feel undervalued and won’t put in as much effort. Employees may also have good insider advice for the company, so regular surveys can fuel ongoing improvements.

Workers should have an accessible, always available means of giving feedback. While 64% of HR leaders think such a tool is essential, only 20% have one in place. Creating an HR chatbot or comment box is a simple fix that will help employees feel valued.

It’s important to follow up on these comments, too. Asking for feedback won’t lead to any meaningful change if management doesn’t also act on it.

An Invested Workforce Will Drive Success

When supply chain workers feel more invested, they’ll give more to the company. They’ll be more productive, produce higher-quality work and foster more positive workplace relationships. In an industry that can easily become dull and disenchanting, those benefits are impossible to ignore.

These eight steps can help any supply chain business motivate and encourage its employees. They’ll invest more heavily in their work as a result.

Archives, Commentary, Global Trade Daily

8 Effective Strategies for Increasing Engagement Among Supply Chain Employees

January 14th, 2022 Dylan Berger Leave a comment

Even in heavily automated fields, employees are the lifeblood of any company. Many supply chain optimization strategies focus on new technologies and workflows, but any effective measure must also consider the workforce.

One of the most important factors to address is employee engagement. Without an engaged workforce, no supply chain will operate at its full potential.

Why Is Engagement Important?

Engagement, the degree to which employees feel motivated, interested and passionate, is hard to quantify but essential to success. Studies show that highly engaged teams are 21% more profitable, exhibit 59% less turnover and 41% less absence.

Despite those benefits, many companies fail to engage their employees. As of January 2021, just 39% of U.S. workers reported being engaged at work. While that figure has risen over time, it still indicates that most employees don’t feel motivated in their workplaces.

In a field like supply chain operations, where efficiency is crucial, businesses can’t afford to overlook this data. Employers must keep supply chain workers engaged, and here are eight strategies to do so.

1. Invest in Employees’ Careers

One of the most important steps to take is to emphasize career development. Surveys show that 94% of employees will stay at their company longer if their employer invested in their career. By contrast, if workers feel like they have no opportunities for advancement in their workplace, they’ll become dissatisfied, eventually leaving.

One solution is to provide opportunities for upward mobility within the company, promoting from within. Another is to offer career development classes or training, equipping workers with new skills. Whatever path a company takes, it should emphasize and promote these opportunities.

2. Listen to Employee Feedback

Another effective strategy for increasing engagement is to listen to what employees have to say. Workers will quickly become disinterested and disillusioned if they feel that management doesn’t care about their opinions. Asking for feedback can help assuage those feelings, but it’s important to go a step further, too.

Businesses must respond to employee feedback, not just request it. If common threads emerge between workers’ suggestions or complaints, there’s likely an underlying issue that needs addressing. Management should take all feedback seriously, thanking employees for it first, then investigating it further. If meaningful change comes from this feedback, companies should highlight it.

3. Create Volunteer Opportunities

Engagement often stems from workers’ respect for the company or a feeling like they’re making a difference in their role. One way to lean into that is to coordinate volunteer opportunities for employees to give back to their communities. In a 2017 survey, 74% of employees and workers said that volunteerism improves their sense of purpose.

Management should look for opportunities to partner with local charities or organize volunteer initiatives. It’s also important to encourage participation, partly to involve more workers and partly to show enthusiasm for the project. Hosting projects like this at least once a year can help employees feel they’re part of something bigger, improving morale.

4. Host Social Events

Volunteer opportunities aren’t the only events outside of work that can boost employee engagement. Social events like parties, potlucks and trips can give workers a chance to grow closer to one another and their leaders. As employees build closer, healthier social relationships within the workplace, work will begin to feel more cooperative and engaging.

Listen to employees to gauge what types of outings and events would interest them the most. Hosting various social events throughout the year can help appeal to different workers, ensuring no one feels left out. In nearly all settings, providing food can be effective, so find people-pleasing recipes to bring.

5. Recognize Commendable Performance

One of the primary goals of boosting engagement is to get employees to perform to their full potential. If companies don’t recognize and reward exceptional performance, they can’t expect workers to strive for these goals. Conversely, if management shows their appreciation for commendable work, more workers will feel motivated to perform better.

In some circumstances, simply highlighting a job well done to other employees is enough to motivate workers. Offering tangible rewards for meeting certain performance goals may be even more effective, as it gives something concrete for employees to work toward. These rewards could be cash bonuses, extra paid time off, gift cards or anything else that workers would want.

6. Pay Attention to Worker Health

Another effective employee engagement strategy is to emphasize worker health. Employees will have an easier time engaging with their work if they feel their company cares about their wellbeing. In supply chain operations, this should include measures to prevent injury, but sponsored workout classes or fitness goals are also good ideas.

Considering one in five American adults experience a mental health issue each year, this strategy should include mental health. Businesses should emphasize the importance of looking after emotional wellness and offer related solutions. Counseling services, support groups and other measures can help assure workers their company cares about them.

7. Remove Inefficiencies and Complexity

Some factors affecting employee engagement aren’t as immediately apparent. One impactful yet relatively easy-to-fix obstacle is inefficient or overly complicated workflows. If employees have a hard time understanding what they’re supposed to do or face multiple obstacles doing it, it will be hard to remain engaged.

The solution to this issue involves two main areas of focus: training and workflow adjustments. More comprehensive, involved training can help workers understand their tasks better, removing mental roadblocks to engagement. Removing unnecessary complexity or inefficiencies in a workflow will then help employees focus on value-adding work, maintaining engagement.

8. Lead by Example

Finally, it’s important for supply chain management to embody the company spirit in their own work. Workers won’t likely exhibit much engagement if the leaders they see don’t appear motivated or passionate about their work either. By the same token, if company leaders are enthusiastic, positive and driven, it will inspire others to be the same.

Studies show that 50% of all workers have left a job at some point because of a bad manager. What constitutes a “bad” leader may vary between people, but leaders saying one thing and doing another certainly won’t help. Anyone in a leadership position in supply chains must lead by example.

Engaged Employees Are Productive Employees

Supply chains become far more efficient with engaged employees. If logistics companies can follow one or more of these eight strategies, they can engage their workforce on a deeper level. They can then maximize their human potential, mitigating workforce issues that plague the industry.

Archives, Global Logistics, Global Trade Daily, Trucking

Leveraging GPS Tracking for Automated Fleet Maintenance

January 12th, 2022 Dylan Berger Leave a comment

Maintenance is one of the most important parts of fleet management. A good maintenance strategy can help a business cut repair costs, improve fuel efficiency, and eliminate vehicle downtime.

Scheduling vehicle maintenance can be difficult, however, especially for businesses that don’t know exactly where their fleet vehicles are.

GPS tracking technology is one of the best tools that fleet managers can use to streamline maintenance — or even completely automate it.

Why Businesses Use GPS Tracking for Fleet Management

GPS tracking is a fleet tracking strategy that uses networked GPS systems to provide managers with the real-time location of each vehicle in the fleet. Location data is often used to streamline scheduling and routing, allowing administrators to make more informed decisions when they need to dispatch a vehicle or schedule a new job.

GPS data may also enable a system to track driver behavior, including unnecessary idling, speeding, and harsh braking events. This information can be provided to fleet managers and dispatchers, as well as passed on directly to drivers.

Fleet managers and dispatchers can use the information to improve their decision-making while drivers can learn more about their own habits and practices — allowing them to identify potential areas of improvement.

These tools are popular among businesses in parts of the country where idling laws may mean hefty fines for businesses that allow drivers to leave vehicles idling. They are also frequently used by businesses that want to track and reduce dangerous driving habits that can harm vehicle health, reduce fuel economy, and make drivers less safe.

The benefits of a GPS tracking system can vary from business to business, but most will see noticeable improvements to vehicle fuel efficiency, overall driving hours, driver behavior, compliance, and safety.

Many GPS tracking systems are also part of a larger telematics system that can provide managers with even more fleet data. These systems may also include dashboards and data visualization tools that help fleet managers better understand the data they’ve collected.

With the right solution, it can be much easier to predict fleet expenses and implement new business policies that help improve fleet performance.

Automating Maintenance With GPS Tracking

The most effective maintenance strategies are preventive. Long before small problems with a vehicle become serious issues, the business takes action to keep the vehicle in the best operating condition possible.

For example, a business may hire a mechanic to regularly inspect brakes, check oil levels, change filters, or check tire tread. These simple checks allow businesses to prevent most common vehicle issues, like brake failure, frequently seen in vehicles like semi-trucks or tractor-trailers when they’re not properly maintained.

The simplest maintenance tasks aren’t usually expensive or time-consuming, and they can help keep vehicles on the road while providing other benefits — like better fuel economy and a lower risk of breaking down.

Preventive maintenance can be hard to implement, however — especially for businesses that have relied on a reactive maintenance strategy in the past.

The time and money needed for preventive maintenance are usually repaid over time, as maintenance reduces the need for repairs or the frequency of breakdowns. Typically, preventive maintenance only becomes challenging when a business doesn’t have enough information on its vehicles, drivers, or maintenance providers.

This information could be a shipping estimate on essential replacement parts, a mechanic’s availability, or the current status of fleet vehicles.

Without the right information, fleet managers can struggle to coordinate the different parts of a preventive maintenance strategy — like the business’s mechanics, tools, replacement components, or the vehicles themselves.

How GPS Tracking Makes Maintenance Automation Possible

GPS tracking provides a valuable source of information on fleet vehicles’ location and driving conditions. The system is continuously updating managers on the position of each vehicle and how drivers are operating those vehicles.

With a GPS tracking solution, it’s typically possible to create automatic maintenance alerts that instantly notify managers when maintenance is needed.

These maintenance alerts are customizable, meaning managers can configure them to appear after a certain number of hours have passed, or when a vehicle passes a number of miles driven.

Many of these solutions also track how employees are driving their vehicles, allowing managers to draw connections between driver behaviors, maintenance costs, and specific repairs.

This data can help managers identify behaviors that harm vehicle health the most, allowing them to track driver behavior and maximize vehicle lifespan while minimizing maintenance costs.

A more advanced system could also provide additional benefits — for example, by automatically scheduling maintenance when it’s needed. Using information from the GPS trackers, the system could automatically schedule maintenance and generate a route to the maintenance garage based on the vehicle’s current location, the driver’s job status, and the distance to nearby maintenance locations.

Over time, information from GPS tracking systems can also help managers understand their fleet’s schedule. With this data, managers can know exactly when business tends to be slow or when specific vehicles are available, allowing them to schedule maintenance in a way that won’t disrupt work.

They may also be able to provide better availability estimates to customers and help their team dispatch vehicles more effectively.

For businesses that have struggled with creating driver schedules or meeting client needs, these tools could help them create better schedules for their team, making it easier to dispatch drivers and complete jobs.

Integrating GPS With Other Maintenance Automation Tools

Fleet managers that benefit from using GPS to automate fleet maintenance will probably also benefit from many of the other fleet maintenance automation tools available.

Many of these tools are built with technology like GPS tracking in mind, meaning they may integrate easily with existing GPS tracking solutions or be able to utilize the real-time data these solutions provide.

For example, a comprehensive telematics and maintenance automation system may be able to provide managers with automatic alerts based on both miles driven and data collected by vehicle components — like tire pressure sensors, brake system sensors, and the engine control unit.

Using GPS to Improve and Automate Fleet Maintenance

An automated preventive maintenance strategy can help any business keep its fleet on the road. Implementing preventive maintenance without the right information may be difficult, however.

GPS tracking systems provide real-time updates on fleet vehicle locations that managers can use to make preventive maintenance much more practical. These tools can also help managers identify reckless driving or bad habits, like idling.

Combined with other maintenance and telematics solutions, GPS tracking can also help make automating maintenance much easier. The right solution can provide automatic notices when a vehicle hits a major milestone or number of hours driven.

Archives, Departments, Executive Getaways, Global Trade Daily

10 Safety Tips for Supply Chain Employees Traveling Abroad

January 7th, 2022 Dylan Berger Leave a comment

Supply chains are global, interconnected networks. It’s only natural, then, that supply chain employees must occasionally travel abroad. Whether it’s for meetings with international partners, inspecting remote warehouses or something else, international travel is a standard part of supply chain management.

While traveling abroad may be an industry standard, it can still pose some risks. In light of those risks, here are ten tips for supply chain employees to stay safe while traveling.

1. Research the Destination

The first step to any international trip is to research the destination. Different countries have different laws and regulations, so employees should know these ahead of time to avoid complications. For example, international COVID-19 travel requirements may differ from the U.S., some resulting in denial of entry for failure to meet them.

Employees should also research cultural taboos to avoid and local crime statistics. Learning a few key phrases in the native language can be helpful, too.

2. Create Backups of Essential Documents

Employees traveling abroad will likely have various important documents with them. In addition to their passports and IDs, they may have hotel reservations, health information or contracts and other work-related documents. Losing these could have severe consequences, so it’s best to have backups.

Employees should have both paper and electronic copies of all their essential documents. Travelers should store digital copies on secure, encrypted cloud services to keep them safe from cyberattacks. Keep in mind, though, that some countries restrict imported encryption software, so employees should ensure their encryption service is legal first.

3. Arrange All Travel and Lodging Ahead of Time

Transportation and lodging are some of the most potentially risky parts of international travel. The best way to prevent any costly mistakes with these considerations is to organize them before leaving. As employees research their destination, they should also find safe, trusted transportation services and hotels and reserve them ahead of time.

When employees are in a new country, it may be difficult to understand which transport services or lodging options are the safest. Looking them up ahead of time gives time to read reviews and get a better understanding of the situation. Reserving them then ensures they don’t have to worry about making arrangements once there.

4. Don’t Trust Public Wi-Fi

While physical security might be more prominent, cybersecurity is also a concern during international travel. As employees travel, they’ll likely encounter many public Wi-Fi networks in airports and hotels. These networks are often not as secure as they should be, so it’s best to avoid them.

If workers must use public Wi-Fi for work purposes, they should use a virtual private network (VPN). VPNs encrypt internet traffic and hide devices’ IP addresses, helping protect users on networks with minimal other defenses. Employees should also avoid clicking unsolicited links, visiting unencrypted websites or entering personal information on these networks.

5. Keep Essential Items Separate

Travelers often keep items like wallets, passports and cellphones close together for convenience. While this is certainly convenient and can feel safe, it could pose a greater threat than people realize. If everything is in the same area, pickpockets or other criminals could steal them all at once.

Keeping essential items separate helps mitigate this problem. If a criminal does steal from someone’s pocket or cuts into part of their bag, the victim won’t lose everything. Consider storing passports, wallets and other essential items in different parts of a bag or keeping them in different pockets.

6. Choose the Right Type of Luggage

Some bags are easier to break into than others, so traveling employees should keep this in mind. For example, hard-sided security bags are virtually impervious to thieves, while soft bags are vulnerable to cuts and tears. If workers bring any valuable items or documents with them, they should consider using harder bags.

Similarly, bags with multiple latches and places to put locks are ideal. While it may be less convenient, if it’s harder for an employee to get into it, it will be harder for a thief, too. Some bags may even come with hidden pockets where workers can place particularly sensitive items and documents.

7. Try to Blend In

When employees reach their destination, they should try not to stand out. Criminals may target people who look like tourists or seem unfamiliar with their surroundings, as they make easier targets. Blending in with the locals helps pass under the radar of would-be thieves.

Part of blending in is simply avoiding being flashy. While an expensive suit and a gold watch might impress potential business partners, they also communicate to criminals that someone is a valuable target. While not in meetings, employees should dress casually, adopt the behaviors of locals and try to avoid looking lost or surprised.

8. Share Itineraries

Another best practice for traveling safely is to share itineraries with other trusted parties. When an employee goes abroad, they should give their manager or another colleague a copy of their flight and meeting schedule. That way, they can check on delays or other disruptions without having to contact the traveler.

It may also be a good idea to share some of these details with anyone the employee is meeting. That way, if they miss an appointment, the others in the meeting will know something is wrong and can help address the situation.

9. Stay in Contact

Along those same lines, it’s important to stay in contact with people back home. Whenever an employee lands, boards a flight, checks in to their hotel or hits any other points on the itinerary, they should let someone know. This gives companies peace of mind and helps them respond to any potential risks faster.

If an employee doesn’t check in by the time they should, the company will know something may be wrong. They can then look into the situation sooner, even if it’s something as mundane as a delayed flight.

10. Consider Insurance

Finally, businesses should consider getting travel insurance for their employees. Since 15% of international travelers encounter a medical issue while abroad and many people have ongoing medical needs, ensuring they’re insured is crucial. Many U.S. health insurance plans don’t apply internationally, so travel insurance may be necessary.

On top of covering travelers’ baggage, travel insurance often includes short-term healthcare coverage.That way, if something happens to them or they need to care for ongoing needs, they can do so affordably.

International Travel Doesn’t Have to Be Risky

Traveling abroad can seem intimidating, but proper preparation mitigates risk. If supply chain employees follow these ten tips, they can stay safe no matter where they go. They can then accomplish what the company needs without worry.

Archives, Global Trade Daily, Special Reports

A Macroanalysis of the Future of Work and Employment From Its Facilitators

December 30th, 2021 Dylan Berger Leave a comment

Recent disruptions have made it clear that the nature of employment is changing. Labor shortages have proved persistent across industries, and employers are realizing that traditional workspaces, trends and workflows may not be ideal.

Perhaps the most notable shift coming from these trends is a broad movement toward remote work. As Nicole Sahin, CEO and founder of Globalization Partners, emphasizes, “companies who can build successful international teams will be ideally placed to succeed in the post-pandemic economy.”

These changes are coming to more than just office workspaces, too. The future of supply chain employment hinges on this shift.

Changing Workforces Today

This shift is already visible across workforces and industries today. While some companies have announced a return to in-person work, many plan to enable remote or hybrid options long term.

According to a Gartner survey, more than 80% of companies plan on enabling remote work at least part-time after the pandemic. Many of these businesses likely didn’t anticipate embracing these policies long-term but changed their minds after witnessing the effects. About 82% of executives reported similar or higher productivity after shifting to remote work.

Another trend impacting the future of supply chain workforces is the growing labor shortage. In a recent survey, 47% of third-party logistics companies cited finding, training and retaining qualified labor as a top challenge.

Amid these shifts, supply chain employment won’t remain the same for long. Here’s a closer look at what’s ahead for the industry.

Why Future Supply Chains Need Remote Work

The most significant change coming for supply chain employment is the same as other industries: remote work. Over the next few years, leading supply chain organizations will embrace off-site and hybrid jobs. Those that don’t will fall behind.

Remote work will be a necessity for future supply chains. Here’s why.

Higher Productivity

One of the biggest reasons supply chains will need remote work is because of its productivity benefits. Sahin emphasizes the benefits of remote work on productivity in a recent blog post. “Those who spend at least 60%-80% of their time working remotely were more likely to be engaged.”

Engaged workers tend to meet higher productivity standards, which supply chains need. Widespread disruptions will likely continue into the future, and logistics organizations must adapt to mitigate them and prevent future delays. Higher productivity is a crucial step in that direction.

If supply chains can boost employee productivity through remote work, they can meet growing logistics needs.

Acquiring Top Talent

Another critical advantage of flexible work environments is how they give companies access to global talent leaders. As Sahin explains in a LinkedIn post, “by spreading the net wide, you can tap into highly qualified talent pools, many of which are found in emerging economies … remote work can bring the best companies and the brightest people together.”

As the supply chain space grows more competitive, acquiring top talent will be increasingly valuable. Companies that can gain the expertise of worldwide leaders in management and technology can speed ahead of the competition. Since these people will come from all regions of the globe, working with them requires remote collaboration.

Mitigating Labor Shortages

Remote work will also help supply chains overcome the ongoing labor shortage. In the face of unfilled positions, logistics companies must look outside their immediate area, and traditional avenues in that area are declining.

Sahin explains: “While some companies depend on immigration programs to relocate talent, those avenues are facing increasing restriction. All the while, the skills gap widens.” The solution is to enable remote work to pull talent from around the globe.

If supply chains can access distant talent pools, local labor shortages won’t be as impactful. As the current “Great Resignation” continues, that will become all the more central to ongoing success.

How Remote Work Could Grow in Supply Chains

While it’s clear that supply chain workforces must go remote, the path to that goal is less evident. Unlike in office jobs, where much of the work-from-home revolution is happening, logistics involves a lot of hands-on, physical labor.

Despite these challenges, the supply chain industry can still capitalize on remote work. However, doing so will require significant change over the next few years. Here’s what that could look like.

Hybrid Offices

The first step the industry will take toward remote work is on the management side of operations. While truck drivers and many warehouse workers must be in-person to perform their duties, that’s not true of office employees. These jobs also potentially have the most to gain from remote work.

In an interview with Tealfeed, Sahin touched on how traditional office jobs are becoming a thing of the past: “it seems likely that the office-based environment that has remained a foundation of modern business could see permanent change.” When modern technologies make these jobs easily accessible remotely and working from home improves productivity, there’s little reason to keep them in a physical office.

Supply chain management is ideal for remote collaboration given its distributed, often international nature. If management teams need to collaborate across multiple countries anyway, it’s only natural that they should fully embrace work-from-home tools.

Industry 4.0 Technologies

The next step in the shifting future of supply chain employment is to bring hybrid work to the warehouse. Traditionally, these jobs were impossible to translate into the work-from-home model. Industry 4.0 technologies like 5G and the Internet of Things (IoT) offer a solutions.

Some companies have already started testing remote-controlled forklifts, enabling off-site employees to accomplish in-warehouse tasks. As faster, more reliable networks become widespread through 5G, similar technologies could apply to multiple workflows. Companies that invest in these methods earlier could drive the workforce shifts of the future.

This transition will take time, largely due to limited infrastructure. As Sahin points out, “As of October 2020, only 59% of the world’s population had internet access … [and] many communities with internet infrastructure don’t have the resources to access it.” Internet access will have to become more widely available and reliable for this shift to take full effect.

Employment Is Changing, Even for Supply Chains

After the disruptions of the past few years, it’s clear that supply chains must adapt. Part of that evolution is a shifting workforce, especially in embracing remote work.

The road to remote work for supply chain organizations is long, but the benefits are too promising to ignore. As current trends continue, logistics employment will shift to become more flexible, unlocking new possibilities.