Supply Chain Scanner - Week of October 21, 2024
Weekly Blog by Emily Atkins
The double-edged sword of digitization
Digitization is top of mind for many who manage supply chain operations in 2024. It is a challenge for organizations to get the mix right between old and new technology as they seek to keep up with the competition.
And it’s not just a matter of managing the sometimes considerable investment in digital tools. Adding digital technology also means a new learning curve for employees and sometimes new expectations of the speed and efficiency with which they must perform duties. It also opens new risks to productivity when it doesn’t work as planned.
A new research survey of transportation and logistics (T&L) workers has found that 99% of Canadian respondents use mobile technology daily, yet lose up to 35 hours per month due to mobile-device-related downtime.
The survey, conducted for mobile device provider SOTI, polled 1,700 people aged 18 and up who work as T&L drivers or in warehouses in organizations with 50 or more employees. Of those, 200 were in Canada.
Inefficiency and limited visibility into device-related performance directly impact a company’s bottom line, employee morale and customer satisfaction. Tech issues, including network and connectivity problems, contribute to significant downtime and delivery delays.
The report found that employees are experiencing up to eight hours of downtime weekly. More than eight in ten (83%) feel adequately trained on mobile data security, yet 71% fear for the safety of their customers’ data should their devices get lost or stolen. Additionally, 69% of employees are concerned about customer data falling into the wrong hands when mobile devices are shared.
“Our research reveals that despite widespread adoption of mobile technology, inefficiencies and security concerns continue to create substantial challenges in the Canadian T&L industry. Downtime and data vulnerabilities are holding businesses back from reaching their full potential,” said Shash Anand, SVP of product strategy at SOTI.
“Proactively managing device performance and security through real-time analytics and remote support is essential to minimize disruptions and build customer confidence.”
Among the countries surveyed, which included the US, UK, Germany, France, the Netherlands, Sweden, Mexico, Australia and Japan, Canada has the highest reported use of overtime as a means of offsetting downtime and delays.
Device downtime was also found to cause stress. Globally 48% of workers reported being stressed by devices going offline, but 57% of Canadian workers reported this being stressful, the highest in any country. In Canada, technical issues contribute to missed targets for 30% of workers, loss of preferred routes for 17% and lost bonuses for 16%. Additionally, 17% of respondents admit to speeding to catch up with delays, raising safety concerns.
Employers are on the hook for these stresses, as employees said that being unable to troubleshoot combined with a lack of real-time IT support is intensifying their angst.
It is also highlighting the need for more advanced mobile technology solutions. While 92% of Canadian respondents have tracking technology on the devices they use for work, 69% desire more. Tracking technology is seen as a key opportunity for improvement, with 90% believing it ensures timely deliveries and keeps customers informed. Furthermore, 87% feel more secure knowing high-value goods are tracked, and 83% believe vehicle tracking increases driver safety.
So, what does this all mean for organizations in this space that are trying to digitize? It underlines the importance of undertaking a thorough planning process before implementing any new tech.
Not only do you need to ensure the use-case fits, but you also need to ensure that there is adequate support for the tech so that employees are not left to devise their own creative workarounds when things break down. Especially in a high-pressure, competitive landscape like last-mile delivery, having devices that do not fail is critical to success.
And in the current environment of competition for labour, it is incumbent on employers to do everything they can to reduce the stress on employees. If you want to keep your workers, don’t make their jobs more stressful than they have to be.
Employers that get the equation right by deploying technology that improves productivity without adding stress to their workers’ jobs will reap the rewards and see a competitive advantage.
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Emily Atkins
President
Emily Atkins Group
Emily Atkins is president of Emily Atkins Group and was editor of Inside Logistics from 2002 to 2024. She has lived and worked around the world as a journalist and writer for hire, with experience in several sectors besides supply chain, including automotive, insurance and waste management. Based in Southern Ontario, when she’s not researching or writing a story she can be found on her bike, in a kayak, singing in the band or at the wheel of her race car. LinkedIn: https://www.linkedin.com/in/emilyatkinsgroup/