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3 threats to your logistics business you should know about

3 threats to your logistics business you should know about

We asked a panel of industry experts and our readers, what is the single biggest threat facing logistics and supply chain operations in 2015? Here are three they identified for 2015.

1. A lack of fresh talent entering the logistics industry.

“The lack of sufficient high quality recruits coming into the industry,” was the answer provided by Jonathan Gibson, principal consultant at Crimson & Co. Jonathan went on to tell us: “In order to address this and encourage young people to enter and stay in the industry, the focus must be on providing training and experience in operational roles.”

This threat was also backed by Ruth Waring, managing director ofLabyrinth Logistics Consulting, who told us a “shortage of drivers and not enough young people wanting to work in logistics” is the single biggest threat. Our readers echoed the thoughts of our experts. Alistair Brace of Ridgeons Ltd answered: “Shortage of HGV drivers.”

If you are interested in hearing about funding opportunities for employer-led education, attend the SHD Logistics Conference in 2015, where Stobart Group will lead a discussion on its training programme and access to funding for employers.

2. Uncertainty for logistics businesses

What will the future hold? The truth is no-one really knows. That’s the threat. But to be sure of success, according to Peter Harvey, chief executive of the Fork Lift Truck Association,  “innovation will need to be grasped and embraced as technology moves forward.”  
Gwynne Richards, author of Warehouse Management, says: “conflict and weather disruptions” is a major threat to businesses. 

What do you think? Answer our reader survey and you could win a HD Kindle Fire and be featured in a news story online.

3. Shrinking margins on sales versus the need to reduce overhead costs

“Shrinking margins on sales versus the need to reduce overhead costs” was a threat identified by a director of operations at a technology supply company, and reader of SHD Logistics Magazine. This threat was flagged up by a number of our readers. The operations director at the aforementioned company is responding  to this threat by “switching to automated processes as much as possible.”

A move towards automated processes and a reduction in head-count was echoed throughout the answers we received from our readers. If you also plan to take things in this direction, be sure to read the articles in the automation feature, coming up in our December issue.


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