Since the onset of the COVID-19 pandemic, many supply chain professionals have been on the front lines and considered essential employees. They’re exhausted from the constant firefighting brought on by a years-long crisis that still hasn’t completely subsided — and the result is burnout. 

Expectations for employees are constantly changing due to staffing shortages and uncertainty within the industry, and there’s no question this unpredictability is affecting talent. This is especially true when considering how long the industry has relied on antiquated systems, such as outdated point solutions.

So, how can supply chain leaders implement a sense of predictability in an unpredictable market? By investing in talent and technology, such as artificial intelligence, that can support modern-day challenges.

Constant disruptions have shown supply chain leaders the value of being able to pivot quickly. When we think of pivoting, we might picture the swift adjustment of timelines or optimizing inventory, but long-lasting impact requires this industry to go deeper. In a highly digitized world, pivoting also means adjusting tech stacks, automating tasks and investing in new technology. 

Automation shouldn’t be feared. While some speculate new technology will take away jobs, employees who streamline tasks with AI are experiencing a lowered risk of burnout  and higher rates of job satisfaction. AI is no longer a buzzword; it’s taken the world by storm and has transformed how organizations do business. 

By automating tasks, employees can spend less time on administrative actions and more on developing and expanding their skills. Between purchase-order workflows, approval processes, and contract management, supply chain employees are pouring a lot of time into administrative tasks and navigating convoluted processes. Instead, the effort spent on these repetitive and mundane functions could easily be put toward projects that engage and help them grow in their roles.

One-hundred percent of finance leaders say they’re currently using AI to cut costs and increase productivity across the business. And the use of AI isn’t expected to slow down anytime soon. Within the year, finance leaders are looking to the technology for more business functions, including procurement, third-party risk management, sourcing, and direct spend management. When harnessed correctly, AI can drive efficiency and productivity in key business areas, allowing leaders to diversify where their time is spent. 

But updating technology doesn’t just benefit an employee’s productivity. It also helps the entire company to function better. Tools like demand modeling to forecast inventory and supplier capacity constraints can help organizations build resilience and quickly adjust plans during unpredictable events, such as the compromising of trade routes. Preparation today can save employees from headaches and finger-pointing when predictably unpredictable disruptions arise.

When examining 2024 priorities, chief financial officers consider the investment in AI tools to be of utmost importance. C-suites at every type of organization are being asked to pivot quicker than ever before, and AI can make this possible. Such tools can deliver intelligent insights to support leaders in making better informed decisions and freeing up time to support employees navigating whatever changes the supply chain industry brings. By leaning into new technology, organizations can see massive improvements in their business operations, company growth, and employee productivity.

Investing Internally

Investments shouldn’t be restricted to just buying new technology. Companies should carefully consider the people they’re investing in. As the industry experiences a mass exodus of professionals retiring from their roles, now is the time for businesses to invest in future generations of supply chain talent. The industry is uniquely poised to build the next cohort of modern-day supply chain leaders — but this requires strategic hiring. 

Finding and onboarding new employees is a time-consuming and expensive task, often costing upwards of $28,000 per employee. The hiring process should be managed carefully and thoughtfully, with leaders taking time to envision each employee's future. To foster talent and prevent long-term issues, companies need to ensure that they can provide training and onboarding resources, as well as career growth opportunities.

Equally important is investing in educational resources and courses, with the goal of up-leveling existing talent and inspiring the next generation to pursue the supply chain as a career path. At MIT, for example, several classes provide technical licenses and certifications for students interested in pursuing a career in supply chain management. Ushering in the next generation of supply chain talent requires investment in both their education and growth. Companies must incorporate emerging technologies, such as AI, to assure new generations that these tools will be available in their current and future roles. 

As the supply chain industry advances, it’s becoming essential for new employees to have a background in supply chain analytics and computer science. Both of these skill sets are extremely valuable within the industry, and can help organizations stand out from competitors. Those with a firm understanding of computer science are well-equipped to navigate the digitization of the industry, and employees who understand predictive analytics can support their companies in predicting supply chain issues, allowing businesses to stay nimble in the face of adversity. Organizations should provide resources and courses to help up-level new employees and strengthen the entire company.

Equipping the organization with a vast array of expertise is more important than ever as the industry undergoes never-before-seen disruptions. One of the benefits of a diverse workforce is the unique backgrounds and experiences they bring into the company. Team members may be positioned to spot opportunities or problems leadership may have missed.

Prioritizing Work-Life Balance 

All the groundwork that has been laid in choosing the right technology and investing in employees can quickly go to waste if team members are burned out. It’s no secret that constant pivots and challenges will continue to take a toll on mental health if nothing is done about it.

With 40% of employees stating that work negatively impacts their mental health, it's essential for both a company’s talent and future success to invest in strong benefits and programs that support workers. Employees need to be able to step away and recharge. Competitive benefits and workplace flexibility go a long way toward fostering an environment where employees are engaged and ready to take on the next challenge. Companies may even go a step further and invest in employee assistance programs for mental health support, or well-being stipends.

While no one has a crystal ball, we can expect the unexpected from the global supply chain, and being prepared is critical to longevity. From investing in new technology to addressing employee well-being, the supply chain leaders who take the time to prepare today will be best positioned for tomorrow. As 2024 continues to bring on never-before-seen challenges, leaders can take small steps toward ensuring that their team is strong and agile in the face of uncertainty.

Nari Viswanathan is senior director of supply chain strategy at Coupa.