Supply Chains Crave Digitization — But Not the People to Make It Happen

Supply chain leaders love to talk about their push for “digitization” of key processes. But their hiring patterns aren’t always lining up with that rhetoric.

Despite a consensus among executives that automating the supply chain is essential in a time of constrained resources, endless disruptions and unpredictable consumer demand, only 6.5% of current openings for supply chain jobs include the word “automation,” according to the 2024 Supply Chain Jobs report by Cleo.

The provider of a software platform for integrating supply chain processes surveyed 925 open tech-oriented supply chain jobs on LinkedIn, Indeed, Glassdoor, talent.com and other sources, posted by companies with revenues between $500 million and $2 billion. The results uncovered “a significant discrepancy in the supply chain industry’s push toward digital transformation and the foundational skills actually being prioritized in the workforce,” says Cleo chief marketing officer Tushar Patel.

The survey also found that just 1.6% of job openings included the term “artificial intelligence,” despite endless hype over the past two years about the power of AI in supply chain, while 4.9% called for responsibilities relating to data management, visualization, mining or insights; and 54.3% required some form of software knowledge.

The disconnect continues after hiring. A recent nationwide survey of U.S. workers by Eagle Hill Consulting found that just 12% are using AI on a daily basis in their jobs, with 58% saying they’ve never used the technology. (The survey did not specifically look at supply chain positions.) And of those who are relying on AI, 65% said they learned how to use it on their own, without the aid of workplace training.

So what’s going on here? Are businesses generally, and supply chains in particular, really interested in reaping the benefits of automation? If you listen to the world’s big consulting firms, “executives are really interested in automating and digitizing their businesses,” Patel says. “However, job postings show that organizations are still slow to adopt the latest and greatest technologies and capabilities.”

Rhetoric aside, Patel believes many businesses lack a clear understanding of the value that automation can bring, and the tools that are available. They continue to rely on outdated systems, including on-premises software and home-grown applications cobbled together over years of operation. “They have not taken that step in modern supply chain solutions.”

Part of the problem lies with the age-old fear of change. Faced with the need to post ever-higher quarterly profits, executives worry about the cost of new technology. And employees worry about losing their jobs — hardly an unjustified concern, given modern AI’s claim to digest more data, and make better decisions, than any human.

Sometimes it’s a matter of confusion as to who has the power to spend money on new technology. The typical organization today, Patel says, maintains two distinct functions: supply chain management and IT. “Often there’s a huge silo between the two departments, existing not just at the top level but throughout. And the gap is increasing.”

Businesses with a more visionary approach are focusing on initiatives around supply chain convergence, Patel says. That means cooperating with IT to find solutions for streamlining workflows and other business processes.

Beyond that small amount of tangible progress lies aspiration. Patel cites a report from EY that 40% of supply chain organizations are investing in generative AI — even though just 2% of job descriptions contain any mention of that cutting-edge technology at all. (EY is more positive about the acceptance of traditional AI for tasks such as sustainability tracking and measurement, for which adoption is as high as 62%.)

Even when investments in new technology are made, many companies lack the qualified people to implement, run and maintain it. As a result, they don’t see the expected return on investment, and might grow skeptical over the value of automation generally.

Considering the massive amounts of data flowing into supply chains today, it’s hard to see how companies can get by without the help of digital tools. If they’re not making new hires to carry out that task, “organizations need to think about how they can either train up current team members to make better use of data, or investment in technology where you don’t need data-visualization experts,” Patel says.

That concept of “convergence” is key, he adds. While many companies are focusing on job candidates with experience in backend systems such as enterprise resource management and warehouse management, they’re not always prioritizing those individuals with the necessary skillsets to bring all the relevant data together.

“People all want to talk about supply chain convergence,” Patel says. “It’s always a key initiative in many publicly traded companies and annual reports. But there definitely seems to be a disconnect between that and what people are actually hiring for.”

Bottom line, says Patel, “Cleo’s research underscores that without a stronger emphasis on digital skills in job requirements, organizations will delay the adopt…