Supply chain issues will continue to be one of the biggest challenges of running a warehouse in 2024, just as they were in the previous several years. Unfortunately, global circumstances are still creating significant delays in the supply chain, and warehouse managers have to adjust and adapt.
Liberty Staffing Services can help you adapt to one of the most important aspects of running your warehouse: staffing! To learn more about how we can provide you with the ideal staffing solutions for your warehouse, reach out to us today!
Additionally, these are some of the warehousing supply chain issues you should consider as you plan for 2024.
Labour Shortages
Finding a high quality workforce is always a challenge. Many HR experts project that labour shortages will be a long term issue that businesses must overcome.
Supply chain issues don’t cause labour shortages, but they are made worse when you don’t have the employees you need when you need them.
Shortages are caused by numerous issues, including but not limited to: an aging population, skills gaps in the workforce, tight immigration policies, and geographic challenges. Warehouses in rural or hard-to-reach areas may face additional difficulty finding employees.
Warehouse operations slow down during these shortages, as fewer workers means slower fulfillment and reduced ability to keep up with the demand. When you are already dealing with delays because of supply chain issues, you have no wiggle room for additional slow-downs.
To address these concerns, we recommend investing in staffing and hiring temporary workers.
Paying a competitive salary and providing excellent benefits will help you stand out from other employers in your area and industry. Investing in your workforce helps you attract and retain high quality employees.
Rising Costs
Raising wages to stay competitive isn’t the only cause of rising costs. In 2024, warehouses will face rising costs from inflation, high energy prices, and supply chain disruptions.
Supply chain issues cause warehouses to face problems with both incoming and outgoing shipments. When incoming shipments are delayed, this causes fulfillment issues, likely reducing your profit margins.
Additionally, your outgoing shipments may need to be paused as other industries deal with delays, which means valuable space is taken up by stalled orders. What a mess!
Combining these concerns, warehouses will experience immense pressure on their already tight profit margins. The best way to respond to these problems is to anticipate them: plan ahead and find ways to improve your efficiency to protect your profits.
Potential COVID-19 Resurgences
COVID-19, while no longer categorized as a national public health emergency, still plays a part in the global marketplace.
Supply chains have generally recovered from early COVID-19 shutdowns, but there is a continued risk of new variants and resurgences. 2024 may see slow-downs in production and shipments based on where outbreaks occur and how national governments choose to handle them.
Warehouses with a significant number of international contracts are especially susceptible to these delays.
Have contingency plans to build redundancy across the supply chain so that you can minimize illness-related disruptions to your operations.
Liberty Staffing Can Help You Deal with Supply Chain Uncertainty
As you look ahead to 2024, it’s clear that supply chain disruptions will continue to create complex challenges for warehouse managers. Labour shortages, rising costs, and pandemic uncertainty collide in a way that puts pressure on your productivity and profitability.
Flexible staffing will prove to be an essential strategy for warehouses as they adapt to meet industry changes. The right mix of permanent and temporary workers will enable you to adjust your workforce capacity quickly and efficiently.
The permanent and temporary staffing experts at Liberty Staffing Services are happy to guide you through this turbulence. Our tailored recruiting and training programs deliver strong warehouse associates to your facilities. We are quick to provide you with the talent you need to operate at peak performance!
Liberty Staffing helps Southern Ontario’s warehouses achieve staffing agility so that they can fulfill orders, satisfy retail and individual customers, and secure your success – no matter what 2024 brings!
Partner with us to onboard the warehouse associates you need! Contact Liberty Staffing today to learn more about how our methods can make your warehouse run smoothly and efficiently.
