The work landscape in distribution, logistics and manufacturing is undergoing a profound transformation driven by the evolving demands of a dynamic workforce. The question arises for these industries: Is flexible working feasible? Traditionally, these sectors require onsite employees for safety and operational reasons. However, a strong argument can be made that introducing flexible working is actually essential for the industry to thrive in the current labour market.

Understanding the changing workforce dynamics

The modern workforce is increasingly seeking job roles that offer flexibility and work-life balance. The shift is particularly pronounced among younger workers, who value autonomy and personal well-being alongside their professional commitments. Adapting to these changing expectations is beneficial and essential for industries facing labour shortages and high staff turnover rates. A report from Advanced shows that attracting & retaining talent is listed as a top priority for the manufacturing (37%) and distribution & logistics (39%) sectors.

Source: Shutterstock

Recent research from the CIPD underscores the urgency of adopting flexible work practices. An estimated four million people have changed careers, and two million have left jobs in the last year due to a perceived lack of flexibility on the part of their employers. The CIPD warns that businesses may face a talent exodus if they fail to offer flexible working options. The report highlights that flexibility is critical to retain and attract staff, address the current skills shortage and foster inclusive workplaces.

Post-pandemic, 39 per cent of organisations offer flexible working from an employee’s first day, up from 36 per cent in 2021. However, nearly half of employers remain unaware of the legislation that will soon make flexible working requests an immediate right. The report also found significant unmet demand for more flexible hours arrangements and, simultaneously increased demand for the same. The findings highlight the need for more education and action among employers to adopt and promote hybrid working practices.

Navigating skills shortages and global supply chain disruptions

The distribution, logistics and manufacturing sectors face a critical skills shortage, further complicated by recent global supply chain disruptions, notably in the Red Sea. Attacks by the Houthi, an Iran-backed Yemeni group, have led to significant shipping disruptions, with key players like the Mediterranean Shipping Company halting routes through this vital shipping corridor. The events have resulted in substantial delays and increased operational costs, affecting businesses reliant on just-in-time supply chains.

Redirecting shipping routes has led to longer transits, escalating fuel and insurance costs and increasing operational overheads. These changes have had a cascading effect, from manufacturers experiencing delays receiving raw materials to retailers like IKEA and Next facing product shortages.

Adaptability in work practices becomes more essential in response to these challenges. Embracing flexible working arrangements, supported by technology like comprehensive contract management software, enables businesses to reassess and adapt their supply chains, enhancing resilience against disruption.

The long-term implications of shipping disruptions may lead to strategic shifts in supply chains, such as increased onshoring and nearshoring. They also underscore the importance of a flexible approach and strong operational infrastructure to maintain efficiency amid changing global conditions.

The feasibility of flexible working

Despite the onsite nature of work in distribution, logistics and manufacturing, flexibility can be introduced in various ways. For instance, administrative tasks and certain training components can be conducted off-site or through digital platforms, reducing the need for constant onsite presence. Additionally, firms can offer a variety of shift options, including job-sharing and shift permutations, which cater to different lifestyles.

Protolabs research reveals that 56 per cent of manufacturing professionals believe flexible working enhances innovation, and only 39 per cent view a four-day working week negatively. Seven in ten would consider a four-day week if their suppliers did, indicating an industry openness to the model. However, the shift requires adapting business models, with 78 per cent acknowledging the need for new manufacturing operational strategies.

The study also emphasises the role of collaborative robots – or cobots – and automation to enhance productivity and creativity. More than half of the respondents believe cobots would improve employee productivity and idea generation, with many manufacturers already using or planning to use such technology. This suggests human-machine collaboration may support flexible working patterns and strengthen operational capabilities.

Souce: Shutterstock

SaaS-based time and attendance solutions are key enablers in this transition, as they offer a range of functions that support flexible working arrangements. For example, self-service shift management allows employees to swap shifts inside defined boundaries, ensuring that skill gaps are not created. Workers highly value this level of autonomy, and empowerment in this way can significantly enhance job satisfaction.

Maintaining security and operational control is a common concern with flexible working arrangements. Here, technology plays a vital role. Advanced solutions provide robust access control systems, ensuring that only authorised personnel are on-site at any given time. Real-time data and monitoring capabilities create a comprehensive overview of operations, giving leaders the peace of mind that their facilities are secure and functioning optimally, even with a more flexible workforce.

Offering flexible working arrangements can be a significant differentiator during a skills shortage. The approach positions a firm as one that understands and respects the needs of its workforce, attracting new talent and playing a crucial role in retaining existing skilled workers.

How to implement new working plans

The integration of flexible working in distribution, logistics and manufacturing is not only feasible but essential for the sustainability and growth of these sectors. It is not just a response to current workforce trends but a strategic move towards a more adaptable and resilient business model aided by a committed and loyal workforce.

“With the right software and support, it’s perfectly possible for distribution, logistics and manufacturing leaders to offer the flexibility key talent is looking for, without compromising on the bottom line or quality service.”

Adrian West, VP of Distribution, Logistics and Manufacturing, Advanced.

To learn more about how flexible working solutions and advanced technology can transform your business in the sector, connect with Advanced. Advanced has a proven track record of success, helping over 100,000 people annually get paid accurately and on time. It currently saves employees over 750,000 hours a year through automation and helps companies save millions through improved operational efficiencies. Discover how Advanced can help your business stay ahead in the competitive landscape by contacting a member of the expert team today.

The post The flexible work revolution: Changing work culture in distribution, logistics and manufacturing appeared first on TechHQ.

It has not been smooth sailing in recent years for the UK’s distribution, logistics and manufacturing sectors. After taking a significant hit during the pandemic, consumer spending and business activity bounced back with such a velocity that demand vastly exceeded supply, leading to supply chain disruptions. Industry leaders like Amazon made substantial investments in technological solutions to bolster efficiency during the COVID-19 pandemic. These further elevated customer expectations, including the demand for same-day order and delivery services.

The distribution, logistics and manufacturing sectors must also tackle supply chain issues brought on by the Russian invasion of Ukraine and the UK’s departure from the EU, renewed climate goals, smooth integration of IoT devices and other technological advancements, as well as labour shortages. A recent study from business advisory firm BDO found that 77 per cent of mid-sized businesses face persistent supply chain disruptions thanks to these challenges. Indeed, research from Make UK found that supply chain pressures will likely continue impacting businesses into 2024.

Source: Shutterstock

Supply chain disruptions have significant consequences, causing delays, increased expenses, inventory shortages and customer dissatisfaction. Inflation can have a similar negative impact, which was at 6.7 per cent in September and is not expected to return to ‘normal’ levels until 2025. It directly drives up prices of materials, labour and transportation required for manufacturing, shipping and storing goods. When this price hike is reflected in the cost of the goods, demand slows, starting a vicious cycle of financial loss. According to a report from Extensiv, 92 per cent of transportation, supply chain and logistics stakeholders claimed that inflation negatively affected their business in 2022.

The need for an agile and responsive supply chain is, therefore, more pressing than ever. The logistics industry is experiencing increased demand for quick insights and innovative solutions to navigate supply chain disruptions and fluctuating consumer preferences

One way of giving a distribution, manufacturing or logistics business the best chance of withstanding difficult conditions is by transitioning to cloud technology. Here, data and applications are hosted on remote servers accessible via the internet. Cloud technology offers scalable, powerful compute and storage, and real-time data access, empowering manufacturers with comprehensive supply chain visibility. By centralising data, companies can rapidly collect, analyse and make informed decisions to mitigate risks and pre-empt disruptions.

The cloud works to improve manufacturing processes, inventory management and distribution efficiency, all without complex infrastructure management associated with legacy, on-premise solutions.

A key characteristic of cloud solutions is their adaptability and scalability. As cloud providers offer Software as a Service (SaaS), they can tailor their offerings to meet specific needs, allowing organisations to engage with shifting demands more effectively. This agility is crucial to maintaining an efficient supply chain when disruptions arise. It is also cost-effective, allowing for a flexible pay-as-you-go model that scales resources as needed.

Real-time insights gained through cloud platforms empower companies to make informed decisions on the fly. This ensures optimised production, inventory levels and distribution strategies, and reduces the risk of overstock or stockouts. Enhanced data security is another critical benefit, with cloud providers offering robust protection against breaches which provides peace of mind.

Cloud-based analytics offer better understanding of customer preferences and market trends, enabling rapid responses and improved customer satisfaction. Improved collaboration is also fostered across the supply chain as stakeholders can more easily publish and share data regarding, for example, procurement and order management. In essence, cloud technology paves the way for cost-effective, secure and collaborative solutions, optimising the supply chain while also fortifying it against disruptions.

Source: Shutterstock

Adrian West, the VP of Distribution/Logistics and Manufacturing at Advanced, said:

“Supply chain disruptions have underscored the importance of agility and responsiveness in our sector. Transitioning to cloud technology is key, offering real-time data access and comprehensive supply chain visibility. This enables us to make swift, informed decisions, optimising our processes and meeting shifting demands effectively. It’s not just about weathering the storm; it’s about steering our course through it with confidence and resilience.”

Since the boom in e-commerce brought on by the pandemic, cloud adoption in the Distribution and Manufacturing  sectors has been increasing. Ofcom estimates that between 2019 and 2022, UK revenues for cloud infrastructure grew by 35 to 40 per cent each year. Additionally, Data Bridge Market Research forecasts that the global cloud supply chain management market will reach £58.53 billion by 2030. Technology will enable more widespread use of self-driving trucks, autonomous cargo drones and smart factories. The latter are facilities that leverage IoT sensors, data analytics and cloud computing to monitor and control manufacturing processes in real-time. Gartner suggests that, by 2026, 75 per cent of enterprises will have adopted some form of intralogistics smart robots into warehouse operations.

Choosing the correct SaaS provider is essential for the successful cloud transformation of any distribution and manufacturing  business. Doing so will help mitigate common hurdles relating to integrating new systems with old, skills shortages and set-up expenses. Cloud technology can be incorporated smoothly into a business’ operations with the help of a trusted, experienced provider like Advanced.

Advanced provides back-office software tailored to the manufacturing and distribution/logistics industries that generates tangible results. Every year, employees in these sectors save over 750,000 hours through automation and reduced manual input enabled by Advanced’s back-office software tailored for the manufacturing and distribution/logistics industries. Find out how to kick-start your cloud transition by contacting Advanced’s expert team today.

The post Navigating the cloudy skies: Distribution, logistics and manufacturing sectors adapt to supply chain storms appeared first on TechHQ.