According to a 2024 Gartner survey, 73% of Chief Supply Chain Officers say labor shortages and workforce inconsistency are the top obstacles to meeting their operational goals.
That number should grab your attention—because even with advancements in automation, AI, and analytics, labor remains the backbone of the supply chain.
And when that backbone is unstable, everything else—on-time performance, throughput, customer satisfaction—starts to slip.
The Modern CSCO’s Labor Dilemma
Today’s CSCO is navigating a complex environment:
Volatile demand patterns
Pressure to reduce costs
A need for greater visibility across the supply chain
A fragmented, often unpredictable labor market
Even the best-laid strategic plans fall apart without a dependable frontline workforce to execute.
What the Data Says: The Impact of Labor Instability
Recent industry research shows:
Turnover in warehouse roles exceeds 40% annually in many regions
Unfilled warehouse positions cost DCs thousands per week in missed SLAs and overtime
Understaffed facilities are 2–3x more likely to experience safety incidents and bottlenecks
Nearly 80% of logistics leaders say labor gaps are hurting their ability to scale
It’s clear that operational labor isn’t just an HR issue—it’s a core supply chain risk.
Why Traditional Staffing Approaches Fall Short
Relying on internal hiring or third-party temp agencies may fill a shift—but they rarely solve the bigger problem.
Here’s what CSCOs are reporting:
No visibility into productivity or engagement
Lack of accountability for safety and performance
High churn rates that disrupt continuity and strain frontline supervisors
Inability to scale quickly in response to surges or slowdowns
Traditional models react to demand. Strategic CSCOs want to anticipate and control it.
What Smart CSCOs Are Doing Differently
Forward-thinking supply chain leaders are taking a more structured approach to labor by:
1. Treating labor as a managed asset—not a variable cost
2. Integrating labor planning into their S&OP process
3. Partnering with workforce providers who align to KPIs and strategic goals
4. Using real-time data to track labor performance and identify bottlenecks
This shift turns labor from a liability into a lever—for agility, efficiency, and sustained growth.
How FHI Helps Supply Chains Run Smarter
At FHI, we specialize in managed labor solutions that align directly with your operational and strategic priorities. We provide:
Scalable labor models tailored to facility volume and complexity
Onsite leadership for real-time workforce management
KPI-driven performance monitoring with actionable insights
Lower turnover and improved continuity that reduces retraining costs and increases speed
Our proprietary FHI INSITE platform gives your team transparency and control over labor operations—so you can forecast with confidence and deliver without disruption.
Align Your Workforce With Your Supply Chain Strategy
If labor is the missing link in your supply chain performance, now is the time to address it. We offer a complimentary Supply Chain Workforce Alignment Briefing to help CSCOs identify:
Where gaps exist in your current labor strategy
How labor instability is impacting your bottom line
What a scalable, managed solution could unlock in terms of efficiency and visibility
Labor should drive your strategy—not derail it.
Let’s talk about how to turn workforce management into your next competitive edge.
Schedule your complimentary briefing today.
If you need dependable support to reinforce your team and get you back on track, FHI NOW can help.
In any market, your supply chain can make or break your ability to compete well. Don't leave that to chance. We can help you create a stronger operation, so you never fall behind the competition.
Stop worrying about labor challenges and start enjoying a safe, lean, and rock-solid supply chain.
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