The Ferrari Consulting and Research Group, through its affiliated Supply Chain Matters blog, announces the release of a newly published research advisory: The Importance of Supply Chain and Human Resources Strategy Alignment for Talent Retention.



Global supply chains are clogged, with businesses, consumers, and supply chain workers collectively frustrated. Every day, media reports have provided headlines of supply chain disruptions, bottlenecks and shortages. As outlined in our 2022 global and industry supply chain prediction themes, the situation will require additional months (or years) to resolve.

There is a growing belief that existing supply chain and talent management processes and technology need a rethink. Talent challenges existed in many areas prior to the global pandemic and have since, grown to more concerning dimensions. The evolution of technology, the growing complexity and performance expectations from supply chains are driving the need to have people who understand data and analytics from multiple angles including, customer behavior, finance, sustainability, and other business and supply network dimensions.

Now, post pandemic product demand surges, subsequent cascading, and often consequential global supply chain disruptions, as well as long hours of work under restricted conditions and personal health concerns have led to even more concerning front-line worker shortages.


Inflection Point- The “Great Resignation” Period

In early May of 2021, Anthony Klotz, Associate Professor of Business Management at Texas A&M University warned about the “Great Resignation”, the significant workforce departures that were occurring in the United States.

Four primary drivers of these workforce departures included long hours and subsequent burnout, workers already inclined to seek a job change prior to the pandemic, the notion of “pandemic epiphanies,” and an aversion to returning to on-site offices after months of successfully working remotely from personal residences. Availability to affordable childcare and in-home online schooling needs was a further factor.

Data provided by the U.S. Bureau of Labor Statistics indicates that in September of 2021, 4.4 million workers, amounting to 3 percent of the workforce, voluntarily left their positions, the highest since the government began tracking departure data in the year 2000. Yet in November 2021, there were a reported 11.2 million job openings in the United States, exceeding the 7.4 million classified unemployed workers.

The challenge is not solely evident in the United States. In October 2021, Politico Europe cited data collated by the OECD indicating that of the 38 member countries of advanced industrial countries, about 20 million fewer workers reside in the workforce than before the coronavirus struck. Of these 20 million, 14 million reportedly have exited the labor market, being classified as ‘not working’ and ‘not looking for work’.

The events of 2021 have already brought forward the realization that workforce talent recruitment and retention have become one of the weakest and more concerning links in the ability to transform supply chains in 2022 and beyond. This inflection point will require some reexamination along with business wide and multi-functional collaboration and added tools.


Series of Research Advisories

In a three-part series of Point of View Research Advisories spanning over the next six months, The Ferrari Consulting and Research Group will address specific supply chain workforce challenges with a special emphasis on how business, supply chain, and human resource management teams can partner collaboratively on proactive efforts to address workforce performance management, recruitment, and retention.

Our initial research report focuses on front-line supply chain operational workforce needs and challenges, and the value of a skilled occupational workforce. The report addresses areas of manufacturing and production, logistics and customer fulfillment, field service, warehousing, and transportation.

Subsequent research advisories publishing in the first half of 2022 will address supply chain leadership and strategy, procurement, planning, and decision-making talent challenges.

The final report in this series will serve as an overlay to the talent management takeaways from both groups, and cover deployment of augmented technology to provide opportunities to overcome workforce talent challenges in supply chain operations and management.

This research series is being provided as a thought leadership resource in conjunction with and the collaboration of Oracle. The content included is the sole responsibility of The Ferrari Consulting and Research Group which maintains full content copyright.

We are pleased to announce to our global-wide readers can now download our initial Research Advisory by accessing this specific Oracle web link.


Bob Ferrari

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