A ‘deep supply chain automation deficit’ is hurting businesses

Despite increased attention and interest in automation, there remains a “deep deficit” when it comes to supply chain, and many managers lack software experience, making adoption of automation difficult technology.

That’s one of the findings of an analysis of 182 open US supply chain job postings on Indeed.com by cloud-based onboarding platform Cleo.

“These findings clearly point to a deep deficit in supply chain automation at a time when companies can least afford it. Software technology, people and processes have not come together in a transformational way. that has really permeated supply chain organizations,” said Tushar Patel, CMO of Cleo.

Cleo reviewed and scored the requirements and responsibilities listed in job postings to identify what hiring managers were looking for in candidates. The supply chain jobs report attempted to use job postings, all of which were posted before September 10, to identify trends in recruitment strategies to identify the importance of the IT innovation and digitization in supply chain-focused businesses, including manufacturers, logistics providers. , warehouses and wholesalers/retailers. The job postings came from logistics and supply chain companies with reported revenues between $250 million and $2 billion.

The company, which offers the Cleo Integration Cloud for logistics and supply chain companies, noted that “supply chain-focused roles are still very manual at a time when companies should digitize roles and process”.

Only 30% of all roles required enterprise resource planning experience and 42% required no software experience.

“The data indicates that companies are failing to approach digitization through an end-to-end lens that visualizes and analyzes supply chain operations in their internal and external ecosystems,” Patel added. “The lack of recruitment of people skilled in modern software will leave organizations struggling to maintain operational efficiency – which is desperately needed in an increasingly fierce supply chain market.”

Cleo said 77% of job postings listed internal collaboration as an expected role contribution, though it’s a responsibility that could easily be facilitated by an ERP or integration solution, he said.

Job descriptions also indicate that leaders are not looking at their business as a whole when developing a digitalization strategy, Cleo added. Successful digitization and optimization starts with buy-in from the top of the workplace hierarchy, but 42% of manager and senior management positions required no software experience.

“Supply chain-focused companies don’t think about the end game, which is to become more agile,” Patel said. “Post-pandemic supply chain inefficiencies have impacted all businesses, resulting in the redefinition of many supply chain roles and processes. Given the rapid transitions and market volatility, effective supply chain management will make or break organizations in 2023.”

Looking at geographic distributions, Cleo found that technical supply chain jobs were increasingly moving south and west.

A fifth of all jobs in the South are in Florida or Georgia.

In the North East, only 1 in 3 management positions include supply chain software in the job description. However, more than half of managerial jobs located in the South (59%) and Midwest (60%) mention software; and roles in the West required managers to have experience with an average software application, Cleo said.

The report ultimately concluded that companies could do more to improve their efficiency.

“By integrating and automating business processes between an organization’s ecosystem (customers, partners, suppliers, and marketplaces) and these core back-end systems, organizations can track and analyze data across the enterprise to produce insights that fuel real-time business decisions – removing the need for overly manual activities to optimize the business,” the report notes.

Of all postings, 25% made no mention of software or indicated any skills required that would be related to operating software systems.

“This begs the question, ‘Has modern software and business process automation really permeated supply chain organizations?’ asked Cleo. “Otherwise, companies are missing an opportunity to fully digitize end-to-end business processes – from the initial transaction with a supply chain entity (i.e. an order from a customer or shipper) upon delivery of their services or goods.”

Failure to develop end-to-end digitized processes “will cause organizations to flounder in an increasingly competitive supply chain market.”

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