When crisis creates opportunity

This marks the 32nd time that Logistics Management has partnered with Karl Manrodt, Ph.D., of Georgia College, on this survey that’s clearly recognized across the industry as the ultimate report card on overall logistics operations performance.

As he has been over the past three years, Manrodt is joined by Christopher Boone, Ph.D., of Mississippi State University, to help expand the survey’s breadth and put context around the findings. In fact, Boone is now taking the reins of the four-month process that yields these important findings every fall.

And this year, I’m happy to report that Manrodt and Boone have been joined by Jason Shin, Ph.D., assistant professor at Mississippi State University, and Joe Tillman, manager of education programs at SMC3. Shin and Tillman played a pivotal role in helping to broaden the study this year to look deeper into what’s become a “human capital crisis” across the logistics and transportation sectors.

“When we launched this survey three decades ago, we focused mainly on trends in freight spending and how carriers performed on three metrics: correct invoice, on-time delivery, and damaged shipments,” says Manrodt. The research team continues to focus on that data as well as how the Titans of Logistics—those firms with revenue of more than $3 billion—are managing their best practices and freight mix compared to smaller shipper organizations.

“I’ll say that one of the things that struck me this year was the level of performance by mode, and especially that experienced by the Titans,” adds Manrodt. “This far out from the pandemic, one would have hoped that things would have returned to normal, but that hasn’t happened yet. Of course, there’s a raft of explanations; higher expectations; actual poor performance; poor measurement; lack of talent—or maybe a combination of all.”

And while the freight spending and carrier performance metrics remain quite useful for shippers, the team started seeing other challenges emerge over the past few years that went above and beyond the day-to-day stresses of traditional logistics management.

“Labor issues became front and center,” says Manrodt. “So, we added segments diving into how organizations are now competing for talent, how they’re differentiating in an increasingly dynamic business environment, as well as what technologies shippers are applying to stay ahead of the curve operationally and help keep employees engaged.”

Indeed, the results of this now more comprehensive snapshot of the overall environment has opened the door for this research team to help fine-tune solutions for shippers of all sizes.

“Despite facing significant challenges, from market uncertainties, evolving customer expectations, and a rapidly changing technology landscape, the logistics professionals in this year’s study continued to deliver at a high level,” says Boone.

But to remain resilient and competitive, adds Boone, logistics organizations must confront the widening talent and skill gap. “They must adapt by rethinking their approach to work, utilization of technology, recruitment of the next generation of talent, and emphasizing retention and talent development—easier said than done, but strides must be made.”