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Importance of Human Resource Management in Supply Chain

There is no denying that the logistics industry is a labour-intensive industry wherein you can get the job done only if you have a skilled workforce. The coronavirus pandemic has brought a drastic change in the shopping behaviour of consumers as the demand for certain good skyrocketed within a short time. This came as a shock for certain industries as they were unable to meet the rising demand of their customers due to the shortage of workforce along with other elements.

This is where competitive human resource management makes all the difference. The performance of any supply chain rests on the shoulders of human capital. However, many companies fail to understand this and pay little heed to the training and management of people in the supply chain. Moreover, the increasing network of global supply chains has made it crucial for companies to employ a skilled workforce to ensure effective communication with partner companies.

Human Resource Management (HRM) is vital for any logistics industry because in the absence of a competitive workforce, the processes like inventory management, packaging, warehousing and transportation can take a major hit. There is already a global shortage of certified professionals at key positions like transportation management, supply chain planning and warehouse management. With these positions filled, a company can rest assured when it comes to profitability, even in adverse conditions.

The common challenges faced by the logistics sector are as follows –

1. Shortage of Skilled Workforce
One of the major challenges faced by the logistics industry is the lack of a skilled workforce that understands the working of the logistics industry. The key factor behind this shortage can be the ever-changing logistics industry that has led to a shift in the required skill set due to modern innovations and technologies.

2. Adaptive Workforce
As mentioned earlier, the change in the demand for certain goods during the pandemic forced companies to make drastic changes to different processes in the supply chain, including procurement, packing, storage and delivery. This shift generated the need to have a scalable workforce that can adapt to the sudden changes in the supply chain.

3. Low Salary
The pandemic has made companies run a tight ship when it comes to offering compensation to their employees. Thus, skilled professionals no longer find the need to work for companies that offer a very low payscale. This leads to the shortage of talent in the industry, which in turn, lowers the profits.
Human Resource Management can be used to tackle these challenges and bring about a balance in the organization’s processes and workforce to collectively achieve the goal of that organization. From hiring new employees to training them and assigning them to different positions according to their talent, an HRM can do it all to bring your business back on track.

Benefits of Human Resource Management

Choosing the right HR management strategy is the key factor in aligning your workforce with your company’s interests. In order to leverage the potential of the workforce to the fullest, it becomes vital for an organization to recruit, train, motivate and retain the workforce in a flawless manner.

Training and development of young employees is an absolute necessity that can be addressed with the help of an effective human resource management system. By aligning the training activities with the organizational goals and objectives, HR can ensure that the company always has a competitive advantage over others and can withstand sudden changes in the industry.

Offering competitive salary packages is also an important function of the HRM in order to ensure maximum retention of skilled individuals. By doing extensive market research, an HR is able to define an optimal salary for particular roles and ensure a drop in employee turnover. This will ultimately increase the profitability of a business and help save costs in the long run.

In a big organization, there are certain sectors that have more than the necessary workforce occupied, while the other areas suffer from the shortage of labour. By using workplace analytics, a human resource management is able to determine the areas that need more attention or skilled labour. This allows a company to optimize its workforce effectively and prevent any waste of talent.

The need for people with multiple skills has increased in the advent of the pandemic. Companies facing a shortage of workforce could really use multi-skilled employees that are adept at solving problems within different sectors of the same business. Human resource management can be used to provide cross-training in a company to make up for the absence or shortage of workforce. By training workers to handle different key functions accurately, a company can always ensure its survival in the market.

With over 40 years of experience in the logistics sector and operational setup in 30 different cities, ARK India has exceptional HRM practices in place that allow you to do business flawlessly and not suffer due to insufficient manpower. So why wait? Get in touch with us today to takeyour business to new heights.