Moving a business from analog-type to fully digital is an expensive task. Wayne Brophy, director at Cast UK, a leading recruitment consultancy in the sector, says that the logistics sector is well aware it needs to transform but either lacks the cash or the appetite to do it. In addition, the way labour works will need to change too.
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It is not surprising that many firms have opted out of digital transformation as at the end of 2019 demand was strong and there was no requirement to pivot.
‘Before the current coronavirus crisis, the demand for labour was no different to what it’s always been,’ explains Brophy.
The challenge companies faced was trying to find talent in a skills-gap marketplace, with additional pressure created by Brexit.
New techniques Logistics firms were forced to rethink the way they recruit and speed up recruitment processes, make it easier, as well as providing better benefits for existing employees. ‘Because of the virus that will change,’ continues Brophy.
‘There will be more labour on the market than available operational roles.’
Companies will have to digitise but that doesn’t necessarily mean recruiting people. Brophy says we could see more contractors taking over large projects.
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There will be some trade-off that would be made, but as companies change their mindset, automation will take the lead. In the near future, the industry will no doubt see a huge shake-up as some firms collapse and new players, more in tune with digitalisation, emerge. For employees this means that they will have to be able to retrain and reskill at a faster rate.