The Rise of The Pandemic Logistician

It wasn’t just drivers who entered the industry during the peak of the pandemic. The role of logistician was booming. The pandemic created demand for supply chain talent giving rise to a new generation of logisticians, the “pandemic logistician.” Many came to the industry to join the logistics circus, prompting us to question:

• How did recruiting handle the need for these logisticians?
• What are the pain points and perks of the pandemic logistician for...
  • Logisticians themselves?
  • Logistics companies?
  • Shippers and pricing?

• How has the logistics landscape changed since the pandemic?

recruiting

The industry saw many new faces. Logistics companies went on a hiring frenzy to keep up with demand during the pandemic. Those hires were trained during an unprecedented time in the history of the transportation industry. No one was prepared, so the answer for many was to focus on getting people through the door and on the floor.

Recruiters benefited during the pandemic. Firms found themselves needing to add more recruiters. Some logistics companies brought on new roles in recruiting and training to pump out employees. Demand for recruiters in the industry remains today.

According to a report this year (2023)  from the Association of Supply Chain Management (ASCM):

21% of the supply chain workforce found their job through a recruiter, which is high compared to the 7% of the total workforce that was contacted by a recruiter. 

Headcounts were high. Demand was high. Rates were high. But, we all knew that what goes up must come down. As George Carlin once said, "just cause you got the monkey off your back doesn't mean the circus has left town.”

Today, we are seeing the backlash from this hiring boom in the form of layoffs. Logistics companies that went on a hiring frenzy suddenly found that they had a surplus of employees. While many companies are cutting headcount, the unemployment rate remains low, hovering around 3.4-3.7%. Jobs are still available, but there is a rebalancing act happening just as we saw with driver capacity post pandemic.

According to the Bureau of Labor Statistics:

June’s numbers showed an upward trend in new jobs across government, health care, social assistance, and construction, while the transportation and warehousing industry changed little and continues to show no trend in recent months.

Skills

Step right up, ladies and gentlemen, and behold the mesmerizing spectacle of The Pandemic Logistician, a new breed of logistician, born of a hopefully once-in-a-lifetime global pandemic. These logisticians have fearlessly taken center stage, showcasing their extraordinary skills and resilience. We invite you to explore the dazzling pain points and perks experienced by pandemic logisticians as they leave their mark in the industry.

Pain Points

Walking the Tightrope of Uncertainty:

Like a tightrope walk, pandemic logisticians had to find balance on the precarious tightrope of uncertainty. Adapting to the regular market seasonality after the unique circumstances of the pandemic presents a daunting challenge, requiring them to navigate through a market cycle unfamiliar to them. This combination can lead to low morale across the workforce as they question their skills and decision-making in terms of customer relations and pricing grows trickier.

Companies can help these logisticians get their footing more quickly through upskilling and cross-training. It's best to start fostering a culture of knowledge sharing in the workplace.

Juggling Multiple Demands:

Just like skilled jugglers gracefully tossing multiple objects in the air, pandemic logisticians had to skillfully manage the immense pressure of juggling multiple demands. Pressure from shippers and challenges with supply chain disruption increased stress. Though this form of stress has diminished as the market shifts, it can lead to increased burnout among your logistician workforce in a shorter amount of time.

“Sometimes burnout is obvious, through an employee’s demeanor or performance. But sometimes the signs are more subtle. Decreased productivity from high performers, increased absenteeism, more sensitivity to feedback, talk about sleep issues, and disconnection from the team are some signs to look for.”

-- Argentus Insights

According to USC Consulting Group, there are various ways to combat burnout across your workforce, such as:

• Educating employees on what burnout is, how to recognize the warning signs, and how to seek help. 
• Providing employees the tools they need to manage their work-related stress, including access to mental healthcare and frequent, paid time-off (PTO) opportunities.
• Offering other perks that can help employees practice better self-care, such as gym and spa memberships or onsite exercise facilities and quiet rooms to allow employees to periodically decompress in the midst of a chaotic work day.

Balancing Acts of Long-Term Planning:

Pandemic logisticians, with limited exposure to stable market conditions, must now conquer normal seasonality and shift their mindset to long-term planning. Instead of worrying about the fall without their safety net, they must now shift their focus to balance and patience. It’s like  pulling back the curtain and putting their skills in the spotlight. Those who remain in the role of logistician post-pandemic must change their mindset, grow in their patience, and settle into typical seasonality.

A Crowd Pleasing Career: Career Satisfaction

Things are looking up for the industry as a whole for career satisfaction. The ASCM also shared in their report that 70% of respondents (~1,524) rate career satisfaction with an 8 or higher. In fact, 88% shared positive feedback about their career and suggested supply chain as a “fulfilling professional path.”

Perks

Agility and Flexibility in Logistics Solutions:

Like nimble circus performers, pandemic logisticians exhibit exceptional agility and flexibility in providing logistics solutions while navigating volatile market dynamics to meet the ever-changing customer expectations and overcome supply chain disruptions. They learned to pivot by working with shippers as they adjust transportation modes, routes, and delivery schedules to combat supply chain disruptions and optimize efficiency.

Innovative Strategies and Cost Optimization:

Pandemic logisticians bring a flair of innovation to the logistics circus. Just as circus magicians amaze audiences with their tricks, logisticians introduce innovative strategies such as consolidation techniques, multimodal transportation solutions, and route optimization to enhance cost efficiency and streamline logistics operations for shippers.

Technological Expertise and Innovation:

Pandemic logisticians are masters of technological prowess as technology boomed during the pandemic as well. Many learned to utilize cutting-edge tools, such as transportation management systems (TMS), advanced analytics, and automation, to optimize logistics operations. By seamlessly integrating technology into the logistics circus, logisticians streamline processes, enhance resource allocation, and deliver exceptional performance that astounds both shippers and established logisticians alike.

Pricing Tricks:

In terms of pricing, you might notice some new tricks here too. Shippers may see the incorporation of AI or new pricing models, such as dynamic pricing or value-based pricing, to optimize revenue and meet customer needs effectively.

Generative AI is based on algorithms and can assist logisticians in pricing as it 'reads' data from their system, the market, and other tools to identify patterns to generate a comparable rate for a shipment. This can be used in bulk pricing or individual spot pricing while also allowing users to set pricing parameters. AI can also be used as a tool for freight forecasting.

What does this look like for shippers? Customers may receive tailored pricing proposals that address their specific requirements, such as providing flexible pricing options based on volume, delivery locations, or service levels. These logisticians may also introduce creative incentives or discounts that reflect their ability to think outside the box. This customization demonstrates a logisticians ability to align pricing with individual shipper preferences.

conclusion

The logistics industry has long been a place where individuals stumble into, pick up some tricks, and never leave. It entrances these individuals who are looking for an industry to call home or a career where they can make a name for themselves. It allows them to showcase their extraordinary talent for an unforgettable performance in the grandest logistics circus on Earth!

With The Pandemic Logistician, shippers benefit from their agility, creative solutions, and enhanced technological expertise. Recent technology, planning strategies, and pricing techniques that once seemed new and innovative are now expected. The role of the logistician is bigger now than ever before, going beyond set pricing and scheduling. It is now their role to introduce and captivate shippers with these new tools and strategies, adding a shocking layer of visibility to their supply chain.

The rise of The Pandemic Logistician is just one of the outcomes from the pandemic, but the impact of their awe-inspiring skills has transformed the logistics landscape for good.

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