Link Between Labor Shortage and Supply Chain Disruption

One of the biggest challenges of the last year has been extensive and unexpected supply chain disruptions. A variety of factors go into causing these disruptions, many of which relate to the challenges brought on by the Coronavirus pandemic. For instance, labor shortages still represent one of the core causes of supply chain disruption.

Labor shortages can wreak havoc by causing difficult-to-resolve bottlenecks in every leg of the supply chain. Keep reading to learn more about the link between labor shortage and supply chain disruption.

Labor Issues Can Cause Disruptions throughout the Supply Chain

Disruptions caused by labor shortages may begin in the factory where goods are produced. A lack of factory workers can delay shipping to distribution centers, setting the stage for major delays down the line. Furthermore, a driver shortage can greatly increase the time and financial costs of traveling to and from distribution centers as well as last mile logistics.

Every unfulfilled job has the potential to increase costs and uncertainty in the supply chain, potentially leading to disruptions that would not have otherwise occurred with a fully staffed and operational workforce. These expensive disruptions could make it difficult for manufacturers and businesses to operate without incurring significant financial losses. Without proper staffing levels, factories are unable to ship packages and trucks are sidelined due to a lack of drivers.

Increased Demand Puts Additional Pressure on the Supply Chain

The issues that come with a labor shortage are made worse by the growing demand for transportation services. While this demand has been steadily increasing in recent years, the rising popularity of e-commerce and changing buying habits of consumers during the pandemic has caused a sudden, dramatic uptick in demand. The higher the demand, the more challenging it is to retain appropriate staffing levels, as it can be difficult to predict how much it will increase further as well as when it might die back down.

How is the Manufacturing Skills Gap Linked to the Labor Shortage?

The skills gap is a major factor in the current labor shortage. According to the Manufacturing Institute, the manufacturing skills gap, defined as the difference between the needs of the employer and the skills of prospective workers, is on track to leave more than 2 million jobs unfilled by 2030. In situations where ample workers are available, some employers could see positions remain unfilled because these available employees lack the skills necessary to perform the job well.

Let a 3PL Provider Help Fill Labor Shortages

It can be difficult to keep enough staff on your workforce during a labor shortage. One of the best ways to address these shortages is by relying on a third-party logistics operator, Brown West Logistics. We have the resources and partnerships needed to help reduce some of the strain on your business and can assist with every aspect of your supply chain. If you have questions about how a 3PL provider like Brown West Logistics could help your business, call right away.

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