**London**: A new report from Cleo exposes a disconnect between the commitment to digitisation among supply chain leaders and actual hiring practices, revealing that a mere 6.5% of job postings mention automation, raising concerns about the industry’s readiness for technological advancements.
Supply chain leaders have asserted their commitment to digitisation, yet a recent analysis highlights a significant mismatch between this rhetoric and hiring practices. The 2024 Supply Chain Jobs report by Cleo reveals crucial findings regarding the job market in the supply chain sector, challenging the narrative that industry leaders are prioritising automation in their operations.
The survey conducted by Cleo surveyed 925 tech-oriented supply chain job postings from platforms like LinkedIn, Indeed, Glassdoor, and talent.com, specifically focusing on companies with annual revenues between $500 million and $2 billion. The results indicated that only 6.5% of current openings included the term “automation,” while a mere 1.6% referenced “artificial intelligence,” despite the significant buzz surrounding AI in the supply chain industry. Additionally, only 4.9% of job postings sought skills related to data management, visualisation, mining, or insights, whereas a substantial 54.3% of postings required some familiarity with software.
Tushar Patel, Cleo’s Chief Marketing Officer, expressed concerns over this disparity. “There’s a significant discrepancy in the supply chain industry’s push toward digital transformation and the foundational skills actually being prioritised in the workforce,” he explained. This disconnect is further underscored by a nationwide survey conducted by Eagle Hill Consulting which noted that merely 12% of U.S. workers use AI daily, while 58% reported never having employed the technology in their roles. Most of those using AI—65%—indicated they had learned to use it independently, absent workplace training.
There remains uncertainty about the genuine interest of businesses, especially within supply chains, in harnessing automation’s potential. Patel observed that while major consulting firms have indicated executives are keen on digitising operations, job postings paint a different picture. “Executives are really interested in automating and digitising their businesses,” he said. Yet, many organisations appear sluggish in embracing advanced technologies and capabilities.
Patel suggested that one reason for this disconnect could be a lack of understanding regarding the value that automation can bring. Many companies still rely on outdated systems, including legacy software and applications developed over time from inconsistent practices. “They have not taken that step in modern supply chain solutions,” he noted.
Widespread apprehension concerning the adoption of new technologies also plays a role. Business leaders often face pressure to deliver elevated quarterly profits, fuelling fears about the costs associated with new technology. Employees share these concerns, worrying about job loss in an era where AI capabilities are continuously claimed to outperform human decision-making.
Another contributing factor is the lack of clarity over who controls the budget for new technologies. Many organisations operate with a division between supply chain management and IT, leading to silos that hamper effective collaboration. “There’s a huge silo between the two departments, existing not just at the top level but throughout,” Patel stated.
Nonetheless, some businesses are adopting a more integrative approach by prioritising supply chain convergence, which involves collaboration with IT to identify solutions that streamline workflows. Despite this progress, aspirations outstrip action, with Patel referencing an EY report stating that 40% of supply chain organisations are investing in generative AI, though only 2% of job descriptions mention this technology.
The skills gap in the sector remains pronounced, with many companies lacking qualified personnel to implement and maintain new technological tools, hindering their expected return on investment. This can breed skepticism about automation’s value. Patel emphasised the importance of organisations either training existing staff to better utilise data or investing in technology that simplifies data visualisation processes.
He underscored the significance of convergence, noting a trend towards hiring candidates with experience in backend systems, yet a failure to prioritise individuals who can aggregate the requisite data effectively. “People all want to talk about supply chain convergence,” Patel elaborated, “but there definitely seems to be a disconnect between that and what people are actually hiring for.”
In summary, Cleo’s research highlights that without a decisive shift to emphasise digital skills in job requirements, organisations might impede their progress toward achieving comprehensive digitalisation, which is increasingly essential for maintaining an adaptable and resilient supply chain amid the complexities of today’s environment.
Source: Noah Wire Services
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