Talent shortage remains a ‘critical challenge’

Despite all relevant efforts, 48% of companies consider the supply chain talent shortage a critical challenge. However, this is down slightly from 50% in 2023. These findings come from recruiter Alcott Global following new research among 152 supply chain executives at major multinationals.

This year, specialized skills such as data analysis (59%), understanding the latest supply chain technology (45%), and sustainability practices are particularly in demand. In the previous survey in 2023, respondents highlighted the need for holistic understanding of the end-to-end supply chain (89%), and problem-solving leadership skills (80%). Incidentally, holistic understanding of the end-to-end supply chain also scored highest this year at a whopping 96%.

Industry transformation

The changing demands, according to Alcott Global, underscore a broader transformation within the industry, with technology and sustainability no longer being peripheral issues, but central to strategic decision-making instead. Moreover, the survey indicates an increasing emphasis on environmental, social and governance (ESG) practices, with 38% of respondents now seeing sustainability as a crucial skill for supply chain teams, up from 33% in 2023.

This trend reflects increasing regulatory and consumer pressures that are forcing organizations to integrate environmentally friendly practices into their operations. And as companies navigate these shifts, they also face the challenges of retaining top talent. In this regard, 22% of executives see high employee turnover as a major concern.

Shortage of talents with technical skills

When asked about the biggest challenge in recruiting for senior supply chain roles, 65% cited finding candidates with the right skills. According to 59%, the shortage of talents with technical skills, such as data analytics and supply chain automation, is a challenge. Reducing the lead time for hiring people and the lack of diversity among supply chain candidates score 35% and 27%, respectively. Retaining talent and minimizing staff turnover is a challenge for 22%.

Changes in geopolitics, trade policies and customs regulations are the main concern for 70% of the supply chain executives surveyed. Changing customer expectations and demand patterns are in second place with 59%. This is followed by talent shortage and retention at 48%, while only one in five respondents are concerned about rising labour costs.

Top priorities: cost reduction and digital transformation

As top priorities for the supply chain in 2024, supply chain executives cite cost reduction and digital transformation; both topics score 76%. Lastly, it is noteworthy that only 47% of respondents consider implementing sustainable and environmentally friendly practices a top priority.