- Supply chains must be flexible to meet emerging demands coming from gradual and uneven digital developments
- Logistics industry continues to be a people business: successful digital transformation depends on collaboration of leadership and workforce
Understanding the potential of new technologies to transform logistics, and the speed at which these changes will come, is critical as we prepare for the future of work. When looking ahead it's clear that while adoption is accelerating, the complete digital transformation of logistics is a multi-decade journey that is essential for improving supply chains to meet emerging customer demands. Talent management acts as a key enabler, using a holistic approach to integrate multiple elements, such as technology, health and safety, sustainability, and diversity - in one workplace.
The next installment of the DHL Trend Report "Future of Work in Logistics" presents two possible futures - one augmented by technology and one automated by it - and the practical considerations for balancing the implementation of each while leading through change today. DHL envisages a future in which some aspects from both the augmented and automated concepts are realized, mostly across the following six segments of the supply chain: warehousing operations, long-haul transportation, last-mile delivery, back-office operations, customer service, and supply chain planning.
"We know that the digital transformation of logistics is not going to happen overnight, but we are now at a tipping point. Scaling digital transformation is people-led and technology-accelerated. From this perspective, we must prepare for the realities of augmented and automated futures today, and enable employees to play an active role in shaping the future of work alongside their organization," says Klaus Dohrmann, Vice President Innovation Europe & Trend Research, DHL Customer Solutions & Innovation.
With augmenting technology, employees such as warehouse specialists and couriers will perform quicker, safer and with less physical and mental effort due to new smart technologies. The workspace primarily used as office space will also reduce, permitting more real estate to be dedicated to logistics functions like warehousing, as technology enables office staff to work remotely.
With automated technology, machines and collaborative robots would perform operational tasks with around-the-clock efficiency and with little-to-no errors, ensuring the continual upkeep, optimization, and expansion of a fully digitalized logistics industry. We will also see a shift in the workforce towards jobs that keep the supply chain running such as maintenance and optimization crews.
As augmenting and automated technologies each provide their own advantages and challenges when adopting them into a supply chain, DHL does not expect either of these two concepts to wholly integrate, especially in the course of the next 10 to 20 years.
Like any large-scale change process, the shift to the future of work in logistics will require careful planning, active management, open communication, inspirational and pragmatic leadership, and novel approaches. These can be broken down into three key levers of success: new leadership and roles, new learning and development, and new work models and environment.
"We are a people business," says Jana Koch, Partner and Managing Director, DHL Consulting. "It's our people delivering the value of our services and of our business, so it's our core interest to take everybody along on the digitalization journey. Everyone plays a role."
It is important that leaders bring employees along and make them an active participant in change. By doing this they can cultivate an environment of preparation and adaption and provide avenues for workers to grow through retraining and upskilling. The logistics industry therefore needs to communicate and collaborate with government institutions, societal organizations, and other industries to ensure that talent does not idle.
To the report “Future of Work in Logistics”
Source: Deutsche Post DHL Group