In an age characterized by rapid technological advances, the logistics industry faces an urgent challenge: the growing skills gap. It is undeniable that the pace of change is moving far too fast for the average person to keep up. Every day, new technologies emerge that require skilled workers - a new generation of workers who are adept at them. These technologies, whether software or hardware, are completely new. Due to the speed at which technology is being integrated into the market, the ability to adapt quickly is essential. According to a report by Deloitte, almost 70% of executives in the logistics industry are aware that the skills gap is widening and poses a significant threat to their businesses.
The flood of software solutions, innovations and artificial intelligence is inexorably penetrating the world of work - each presenting both opportunities and challenges. With constantly evolving market demands and ongoing changes in operational processes, bridging this divide is critical to sustainable success. This article explores the role of the Internet of Things (IoT ) as a catalyst for closing the skills gap in logistics. By increasing the skills of the workforce and improving operational efficiency, IoT offers a way to address this key industry challenge.
Understanding the logistics skills gap
Let us now look at the micro level and draw a parallel with the macro level. In 2022, OpenAI ushered in the age of simple and adaptable AI. This change was so fundamental that it took companies years to understand it. In fact, few companies began to invest in professionals who not only knew how to exploit this shift in power, but also how to interpret its future potential.
Two years later, OpenAI dominates all sectors and is just the tip of the AI iceberg as more and more digital giants develop their own version of this platform. More and more companies are having to scramble, hoping to attract employees who know how to use this tool effectively. However, these individuals are often not in their resource pool or workforce.
This micro example can be transferred to the macro level or at least to other industries and revolutionary tools.
The logistics skills gap is a significant obstacle for the industry, characterized by a mismatch between the skills required for modern operations and the expertise of the workforce. For example, according to the American Trucking Association (ATA), the shortage of truck drivers in the U.S. is expected to reach 160,000 by 2028, exacerbating the skills gap crisis. Factors contributing to this gap include rapid technological advancements, changing industry standards and demographic shifts within the workforce.
Why is there such a huge skills gap today that is affecting the whole world?
- Lack of access to education and training
- Lack of alignment between education and industry needs
- Automation and job cuts
- Economic uncertainty
- Globalization and outsourcing
- Shift in workforce demographics - older, experienced employees are retiring.
- Evolving industry standards
- Rapid technological progress.
Seven ideas for closing the skills gap in logistics with IoT
With the advent of IoT devices and standards, companies are now in a position to get ahead of a skills shortage. Let's take a look at some of the strategies currently being used to bridge this gap with the help of IoT .
Realistic training simulations
Using IoT standards, practices and tools to develop immersive training simulations that replicate real-world logistics scenarios enables companies to quickly recognize where they stand and identify potential for improvement. These simulations provide employees with hands-on experience with new technologies and processes, which strengthens their skills and adaptability.
Virtual reality (VR) in particular is currently being used as the main tool. According to a study by PwC, immersive technologies such as VR and augmented reality (AR) can improve learning ability by up to 75%. With the introduction of spatial computing, as implemented in Apple's Vision, for example, these tools are now rapidly becoming available to the general public.
Instructions in real time
Today, companies use IoT devices to provide their employees with information and instructions in real time. This allows them to interact quickly in the warehouse or during transportation with a system that offers them helpful advice and recommendations for action. This reduces the need for extensive pre-training and increases operational efficiency.
Training in predictive maintenance
The use of IoT data makes it possible to train maintenance staff in predictive maintenance techniques. By analyzing device data, employees can identify and address issues early, improving device uptime and operational efficiency. According to IBM, predictive maintenance can reduce maintenance costs by up to 25% and unplanned downtime by up to 75%.
Monitoring safety compliance
Companies today are adopting a "swarm" mentality when it comes to the use and deployment of IoT devices, from sensors to other tools. This is because these sensors not only monitor everyday life, but also help to maintain compliance and safety standards in real time. According to a study by the Occupational Safety and Health Administration (OSHA), workplace accidents cost US companies over 170 billion dollars annually. By using IoT devices, companies not only protect their employees, but also their finances.
Development of data analysis skills
Offer training programs aimed at interpreting and implementing the insights provided by IoT devices. By strengthening data analysis skills, employees can effectively use IoT data to optimize operations and decision-making processes. According to a McKinsey report, companies that use data analytics are 23 times more likely to win customers, 6 times more likely to retain customers and 19 times more likely to be profitable.
Promotion of IoT competence
Promoting a fundamental understanding of IoT processes across all areas of the business through training and development is crucial. It is important to proactively address the skills gap that currently exists in order to overcome it. This promotes flexibility and adaptability and empowers employees to utilize IoT technologies and drive innovation.
Task automation
By using IoT technologies, companies can automate routine tasks that take up a lot of time, such as inventory tracking or order processing. By relieving their employees of monotonous tasks, companies can devote more time and resources to skills development and high-value work. A study by Capgemini found that companies that use automation technologies see a 15-20% increase in productivity. Automation not only reduces manual labor, but also contributes to employee satisfaction as employees basically dislike repetitive tasks. By introducing IoT automation, companies can effectively relieve their employees of these tasks.
Tackling challenges and seizing opportunities - overcoming the skills gap
While the IoT offers promising solutions for closing the skills gap in logistics, adoption and implementation can present challenges such as cost, complexity and resistance to change. Nevertheless, companies can overcome these obstacles by investing in comprehensive training programs, fostering a culture of innovation and addressing employee concerns. Ultimately, the IoT offers transformative potential to address the skills gap in logistics and empower companies to succeed in an increasingly digital and competitive landscape.
We would be happy to advise you on the opportunities that IoT and asset tracking offer your company.
