Millennial talent seeks employment opportunities with companies that promote transparency, technology, excellence, and social change.
We write often about the supply chain talent gap and how supply chain companies should be proactively recruiting millennials to join their companies. So a recent Harvard Business Review article, which talks about how companies that “young people find dull” (like electrical distributors and manufacturers) can make their businesses seem “cool,” seemed particularly relevant.
While we adamantly disagree that the supply chain isn’t cool, we do think it’s important that logistics and supply chain companies think strategically about recruiting millennial talent.
Millennial talent and the vision thing
According to a new study by strategy firm Department26, “Transparency is the millennial standard operating procedure in the workplace.” Honesty and security are top of mind for this generation that came of age just as the country plunged into The Great Recession.
[bctt tweet=”Beer kegs and ping pong are nice, but millennials are more impressed with leadership that sets goals and delivers on them. ” username=”Fronetics”]
Beer kegs and ping pong are nice, but millennials are more impressed with leadership that sets goals and delivers on them. They want to know how their role contributes to the organization’s success, and they want to know the effort they’re putting into a job is worth it.
“Setting them up for success means regular check-ins, both positive and constructive feedback as a rule, and structured mentorship,” write the authors of the Department26 study.
People say millennial talent doesn’t work for money, and it’s true that they’re not motivated by salary alone. Younger employees want meaningful work that enhances their personal growth.
They also want flexible work rules that show an employer respects and trusts them. Sharing details of your strategic plan or examples of how your HR policies reward personal initiative can help millennial talent see your “boring” business in a new way.
“The thought of not being granted flexibility in exchange for hitting performance metrics is absurd to millennials, and it’s a concept that’s diametrically opposed to the freedom they crave,” the study concludes.
Talk tech
Logistics or trucking can sound dull to the iPhone generation — until you paint a picture of forward momentum and innovation that might surprise them.
Automation, robotics, autonomous vehicles, blockchain, drones and the Internet of Things (IoT) are reshaping the industry. Companies like Amazon, Pfizer and Wal-Mart are experimenting with new technologies to reduce costs, boost productivity, and improve handling performance.
“Wearable technology could soon become a standard must-have in the logistics industry,” according to a recent story in The Business Journals. “As these technologies continue to carve out their role in the global logistics industry, we’re likely to see previously unimagined levels of optimization — from manufacturing to warehousing to delivery.”
Find ways to change hearts and minds by exposing young people to the realities of today’s supply chain. If they think it’s boring, it’s because they really don’t know what it is.
Be the best damn supply chain company anywhere
People want to work for “the best” — the most innovative, the most profitable, or the most admired brand — in every industry. Workers are proud to say they work for a company recognized as being the best at what it does because it says they’re the best, too.
Even millennial talent that has never thought about a career in logistics might reconsider if they’re being recruited by an industry leader.
Celebrate excellence at your company. Promote the awards you’ve won. Share customer testimonials, positive media coverage, and community recognition with prospective recruits.
It also helps to do well by doing good. This is a generation that trusts business, not government, to create positive social change. “Millennials are hungry for a work culture that inspires them. At a macro level, companies should communicate clear plans that reflect their core values,” says Department26.
HBR author Bill Taylor summarizes these sentiments well: “What [millennials] value is the chance to join companies that make a difference and where the work brings out the best in them.”
In many cases, automation in manufacturing creates leaner, more efficient operations. Efficiency facilitates new opportunities and business growth, which in turn allow for job creation.
The rise of artificial intelligence (AI) and its applications in manufacturing have driven a palpable fear that mass job loss is on the horizon. We have to wonder: is the threat as real and as imminent as many think? Like many things, the answer is more nuanced than a simple yes or no.
A McKinsey Global Institute report predicts that automation could cause the loss of between 39 and 73 million jobs by 2030 in the U.S. alone. Clearly, the AI genie will not be put back into its bottle. However, this doesn’t mean that all jobs across all sectors will be affected evenly.
Generally, low-skill jobs are more susceptible to replacement by AI. This is especially true in industries like retail, which has worked to automate many aspects along the purchase journey, including processes designed to get packages into consumers’ hands faster.
Not the end of the world
Oddly enough, 73 million lost jobs doesn’t spell all doom and gloom. Yes, people will lose jobs — that is inevitable. Automation, however, will create many more.
Think about it: In many cases, automation creates leaner, more efficient operations. Efficiency facilitates new market opportunities and business growth, which in turn allow for expansion and job creation. And these new jobs aren’t the low-skill positions of their pre-automation predecessors. They’re operating new technology, supervising automated processes, and other higher-paying opportunities.
Amazon: Case in point
Consider the retail industry’s brick-and-mortar boom and bust and the rise of e-commerce. As stores shuttered, companies had to downsize the number of individuals they employed. Then, as e-commerce boomed, e-retailing companies were able to bring on more employees — often at higher salaries than in traditional retail.
Amazon’s expansion to the “once-thriving factory town” of Fall River, Mass., offers a prime example. The city, which boasted nearly 20,000 manufacturing jobs in 1991, saw that number dip below 4,000 by 2015 — in large part due to automation. The 2016 arrival of an Amazon fulfillment center was the single largest job-creation event in recent memory.
Employment at the Fall River center has crept above 2,000 in just over a year. And it’s apparent that number will keep rising and that humans won’t be phased out anytime soon. In fact, rather than replace human workers, Amazon’s technology helps each become more efficient. That stimulates Amazon’s growth and the need for more fulfillment centers and more talent to fill those jobs.
While the majority of the Fall River center’s jobs are not skilled and pay reflects that, other benefits such as overtime, tuition aid, and company shares make annual compensation comparable to or better than what local textile mills once paid. Fulfillment center jobs certainly pay above traditional retail and offer employees the opportunity to work withartificial intelligence — rather than in competition with it.
A double-edged sword
AI in the warehouse may stimulate job growth. But those most likely to lose their jobs to automation — low-skill workers — may not possess the transferable skills to be successful in the new wave of jobs created by technology. For example, would a former factory worker who put together boxes for fulfillment be hirable for a position operating custom box-cutting machinery?
Amazon, again, exemplifies a solution. The company offers its workers significant training and education to breach any skill gaps. Those who have never had experience in a warehouse or operating technology will need companies to invest in their training to ensure those who have lost their jobs to automation will have a place in the new economy.
History repeating
This isn’t the first time we’ve encountered such an issue. Before ATMs were the ubiquitous cash-dispensing machines, many thought them the great disruptor of the banking industry. The bank teller’s role was sure to become obsolete.
What actually happened is that ATMs led to more efficiently run banks. While some jobs were lost, banks were actually able to open up more branch locations, which led to the creation of more jobs.
Will automation in the warehouse cause the same scenario to happen? Will organizations become more efficient, allowing them to grow and hire more workers at better, higher paying jobs? In many cases, it looks like it already has.
Companies in the supply chain and logistics industries should take note of these top social media trends in 2018.
While we don’t know what 2018 has in store for companies in the supply chain and logistics industries, we do know change is coming. That is true not only in terms of the economy and your business, but also for the marketing tools you use. Of course, ever-evolving social media platforms are an important part of that.
We already know that Facebook News Feed will be making some big changes this year. What other platforms or types of media will be hot? What will your industry peers and competitors be trying in 2018? As we dive into the new year, it’s important to be aware of the social media trends that will dominate the next 12 months so you can incorporate them where you are able.
As always, good content will be as important as ever. With over one million new-data-producing social media users each day, high-quality content is the only way to stand out from the masses. But we also think you should pay attention to a few social media trends that we have highlighted in the following video. We’re certainly planning to adjust our strategy and those of our clients to consider these things.
As you start to strategize for 2018, and beyond, be sure to consider these social media trends in your content marketing plans.
Top social media trends for 2018
Make sure to follow our blog for our monthly social media news posts to stay updated on the latest platform updates. And feel free to reach out to us with questions or if you would like to see a certain social media trend covered on our blog.
I repurposed some of our popular content into a video using Lumen 5, a video automation tool.
Have you heard of Lumen 5? It’s a cool website that turns your blog posts into videos in a matter of minutes. You simply enter a URL of an existing post, and it automatically selects text and creates slides with relevant photos. You can edit the text as necessary and swap out photos from a vast library, then select music to go along with the slideshow. And you can even swap colors and add your logo for a little bit of branding.
Super user friendly. Really quick. Did I mention that the most basic functionalities are free?
Video and automation: Two of my favorite words!
I’m always looking for ways to repurpose some of our best content or just present it in a new way. So when my colleague came across Lumen 5 the other day (true story, they are not paying me for this plug), it seemed like an easy tool for doing so.
If you read this blog regularly, you know that I believe all businesses — even supply chain and logistics businesses — should be considering video as a part of their content marketing strategies. Most don’t have the time or budget to do something professional. So automation tools like Lumen 5 offer an interesting opportunity to delve into video without a big investment.
Something else we’re big on at Fronetics? Automation. It’s tricky with marketing because marketing requires a lot of strategic thinking, analysis, and creativity, which really can’t be automated. So any tools that do help automate any part of your creative or editorial processes are a good find.
All this being said, I did do quite a bit of editing and perfecting of the video below. But I was pretty impressed with the original video that Lumen 5 created from my post before I started working on it, too. Features like the text select and image suggestions speed up the editing process, so all in all, I probably spent 20-30 minutes making a video. Not bad!
Video: How Often to Post on Social Media
For our inaugural Lumen 5 video, I decided to use one of our most popular posts, This Is How Often B2B Companies Should Post on Social Media. It’s a question that we get all the time, and I felt the content worked in both the more robust blog post format and the hyper-shortened (about 1 minute) Lumen 5 video format.
Here it is:
What do you think? Do you use any video tools that are free/cheap and fast?
From the military designs of the early 20th century to modern commercial development in 2017, drones have been making their presence widely known in the market. While military drones may have paved the way for commercial drone development, they have quite different purposes.
Drones provide much value, where traditional alternatives (such as helicopters or planes) fall short. Drone usage in supply chain optimization is still in its infancy. However, I am not convinced that drones are the solution going forward.
Note: For my analysis, I will be focusing on commercial drone usage in the supply chain.
A Timeline of Major Military Drone Development
1918: Kettering Bug. First modern drone concept used as a “flying bomb.”
1935: DH82B Queen Bee. Used as target practice for anti-aircraft weapon training.
Drones provide many advantages, such as mobility, cost effectiveness, ability to move goods, and camera technology. Although drone development is rapidly advancing, many challenges currently exist. Limited battery life, constrained operational range, collision liability, proneness to hacking, and even invasion of privacy are all legitimate challenges.
Commercial Drone Fast Facts
Made of light composite materials.
Typically have two to five rotors.
Controlled by either remote control or GPS.
Flight time ranges, but generally falls between 12-27 minutes.
Battery powered.
Operational range varies from 200 meters to 7 kilometers.
Current Drone Usage in the Supply Chain
Large retailers such as Walmart and Amazon are already investing significant capital in drone technology. On December 6, 2016, Amazon successfully completed its first beta trial of drone package delivery, called Prime Air, in Cambridge, U.K.
Here’s how it works:
Customers place their orders online as usual.
The package is prepped at the regional fulfillment center.
Drones are then dispatched from the center with the package.
Customers place QR codes on their property to indicate the drop-off point.
The package is delivered at the customer’s address within 30 minutes.
The drone is operated by GPS and handles up to five pounds of cargo.
Walmart, on the other hand, is taking a different approach to managing their supply chain. Instead of focusing on package delivery, Walmart is testing the use of drones to monitor inventory in their warehouses.
Employees currently catalog merchandise with hand-held scanning devices and often need to use forklifts in the warehouse. Instead, the drone could move up and down the shelves cataloging inventory at a much quicker rate. Walmart claims that the drones “could help catalog in as little as a day what now takes employees about a month.” This program is expected to begin in at least one distribution center in 2017.
What about Legal Issues?
In the United States, commercial drone usage is still pretty limited. Below is a highlight of Federal Aviation Administration (FAA) commercial drone regulations.
Must have a Remote Pilot (no GPS allowed).
Must be less than 55 lbs.
Must undergo pre-flight check.
Must keep aircraft in sight.*
Must fly under 400 feet.*
Must fly during the day.*
Must not fly over people.*
Must not fly from a moving vehicle.*
*Indicates that these regulations can be waived.
Supply chain drone usage in the United States is currently limited due to these regulations. In the future, I expect many of these regulations to ease or change outright with advancements in drone technology. When this will occur is unknown.
However, other countries such as the United Kingdom are quicker to enact regulations by virtue of the Civil Aviation Authority (CAA). As a result, companies like Amazon have already been testing drones for supply chain optimization there.
Significant Hurdles
Although drone technology is gaining much media attention, there are legitimate challenges to drone commercialization in the supply chain.
While many legislative bodies attempt to develop drone regulations, concrete legislation is lacking in many countries due to fluid technological changes. In order for the market to fully develop, a legislative framework needs to be established. Companies will be reluctant to invest significantly in drone technology until legal parameters are established.
Another challenge is in regard to insurance and liability. With potentially thousands of (unmanned) drones flying only hundreds feet above the ground, insurance will surely be required. In the event of a drone collision with individuals, property, aircraft, or other drones, who then is liable? If the drone is piloted by a human, would he/she be liable? On the other hand, if the drone is GPS-enabled, would the technology be to blame? Surely some of these questions will be answered in contracts between insurance companies and suppliers, but with such uncertainty, premiums will undoubtedly be high.
Then there’s the question of rural vs. urban delivery. Amazon Prime Air is predominately testing drone delivery in rural areas. However, 80.7% of U.S. and 90.1% of the U.K. population live in urban areas.
Package deliveries in urban areas are via mailbox, left by the door, or hidden (to avoid theft). In other words, human judgement is used to deliver the package most appropriately. For customers in large apartment buildings, drone delivery is very limited. Perhaps these limitations could be offset with designated landing areas on rooftops, despite the fact that additional effort by the customer may be needed to retrieve the package.
Last, but certainly not least, is the impact of weather conditions. Wind, rain, snow, and extreme cold/heat all impact drone performance. Since current drones are not very heavy, any significant wind will 1) blow the drone around making it harder to control, and 2) use additional battery life to remain stable. Since drones incorporate many electronic components, rain and snow increase the chance of malfunction.
Furthermore, most drones utilize Lithium Polymer batteries — these batteries are prone to weaker performance in extreme cold and heat. According to Batteryuniversity.com, most Li-ion batteries stop functioning below -4°F. Additionally, battery performance is reduced 40% at 104°F and 50% at 113°F. The combination of all these weather conditions certainly provides logistical challenges for drone delivery and supply chain usage.
Is There Any Hope for Drones in the Supply Chain?
The short answer is yes, but in a limited manner.
With the logistical and technological challenges regarding drone delivery, I just can’t see e-commerce firms effectively managing the process outside of rural areas with optimal weather conditions. In the future, this could change, but it would require significant legal, technological, and customer adjustment for the process to be superior over the current state.
However, drones open other opportunities for supply chain optimization, such as warehouse inventory management (as with Walmart), infrastructure monitoring, surveying, or even security. For example, shipping firms such as FedEx or UPS could utilize drones to monitor traffic and optimize drivers’ routes based on real-time data. Additionally, energy companies could use drones — as opposed to helicopters or planes — to monitor pipelines. Finally, engineers could use drones to inspect dams, highways, and buildings more efficiently.
I have no doubt that the drone market will continue to expand. According to Visualcapitalist.com, by 2025, the U.S. economy is expected to see an increase of $82 billion and creation of at least 100,000 jobs. However, their impact to supply chain optimization remains vague to me.
About the Author
Matt Steckowych graduated from the University of New Hampshire in 2011, with a B.S. in Business Administration and is currently enrolled in the part-time M.B.A. program. He is a Salesforce.com Administrator at John Hancock in Portsmouth, NH.
