Logistics companies around the world are grappling with a talent shortage – a dearth of skilled workers needed to manage supply chains, drive trucks, and run operations. As seasoned professionals retire and fewer young workers enter the field, the gap is increasingly evident. For example, the average age of truck drivers in many regions is over 50, and industry surveys warn that the driver shortfall could double by 2028 if current trends hold. It’s not just drivers: warehousing operations report chronic worker shortages (73% of warehouse operators couldn’t find enough labor in 2023), and supply chain planners and analysts are in high demand but short supply, especially those with tech skills. The big question is how to fill this widening gap and keep logistics moving. Two strategies are proving effective: offshoring (global talent outsourcing) and automation. Together, they allow companies to do more with less local headcount, alleviating the talent crunch.

Tapping Global Talent Pools (Offshoring)

When local hiring can’t meet demand or is too costly, logistics firms are increasingly turning to offshoring – hiring talent in countries with ample supply of skilled workers. This might mean outsourcing certain roles to a BPO company or establishing satellite offices abroad. Offshoring has multiple benefits in the talent context. Firstly, it gives access to a broader labor pool, often with the skills needed. For instance, if a U.S. freight forwarder struggles to hire documentation specialists or customer service reps, they might offshore those functions to India or the Philippines, where there are many trained graduates in logistics and international trade. These markets not only offer cost advantages but also a youthful workforce (notably, only ~13% of the logistics workforce in the West is under 25, whereas countries like India have a much younger demographic). By engaging younger, tech-savvy workers abroad, companies can infuse fresh energy and digital skills into their operations that might be lacking at home.

Offshoring also helps solve the geographic mismatch of talent. Maybe your company is based in a region where supply chain experts are scarce, but by widening the search globally, you can find the expertise. A great example is the rise of offshore Center of Excellence teams for logistics analytics in countries like Poland or Malaysia – 3PLs have set up teams there to do demand forecasting, routing analysis, procurement, etc., roles that were hard to fill domestically. According to industry commentary, the post- pandemic “new normal” has already compelled more trucking firms and 3PLs to retain BPO providers to bridge labor gaps and find operational efficiencies. In other words, outsourcing isn’t just about cost; it’s about finding the people you need to sustain and grow the business when local pipelines run dry.

Automating Repetitive Tasks

The other prong of the solution is automation – using technology (AI, robotics, software) to perform work that previously required employees. If you can’t hire enough people, reduce the need for people in the first place. This trend is visible across supply chain functions. A 2024 survey of 1,000 logistics decision-makers found 76% are facing notable labor shortages, and over half (54%) are responding by automating non-value-added, repetitive tasks to improve worker productivity. Automation takes many forms. In warehouses, autonomous mobile robots shuttle goods to human pickers, meaning each picker can handle more orders (filling the gap of missing staff). On the road, route optimization software (like dynamic dispatch systems) can enable one planner to schedule many more deliveries than before. In the back office, RPA bots process invoices or update TMS records far faster than a human, reducing the number of clerks required.

Real-world example

Delivery companies cite route optimization as a key tool to mitigate driver shortages – by using AI to eliminate unnecessary miles and idle time, each driver’s route is more efficient, so fewer drivers can handle the same volume. Indeed, among companies considered “leaders,” 63% had partially or fully deployed route optimization software to boost labor productivity. Another example is shipment tracking: without automation, answering “Where’s my freight?” queries can eat up countless employee hours on calls and emails. Automation fixes that through real-time tracking portals and automated notifications. In fact, 53% of companies have implemented automated real-time tracking for shipments – the top choice to improve productivity of logistics knowledge workers and reduce manualeffort. These technologies let the existing staff focus on exception management rather than routine status updates.

Complementary, Not Competing

Offshoring and automation often go hand in hand. Implementing automation requires skills (e.g. data analysis, IT maintenance) that might be scarce in-house, but you can offshore those functions to specialists who monitor and tweak your AI systems. Meanwhile, by automating part of a process, you make the jobs of your offshore team more high-value and interesting, which can improve retention. The goal is to reallocate human talent – local or offshore – to the tasks that truly require creativity, problem-solving, and relationship management, while automating the rote work. This symbiosis helps address the talent shortage by both creating “digital workers” (through AI) and leveraging human workers wherever they are available.

Upskilling and Retention

It’s worth noting that alongside these strategies, leading logistics companies are also upskilling their existing workforce to handle new tech. But offshoring and automation relieve pressure during the upskilling transition. With repetitive tasks automated or sent to an outsourced team, your core employees can spend time learning to manage advanced systems or focusing on strategic initiatives, which also improves job satisfaction and retention. This addresses one root cause of the talent crunch: people leaving due to burnout or lack of growth opportunities. By freeing them from drudgery, they’re more likely to stay and evolve with the company.

In summary, the logistics talent shortage is a multifaceted challenge requiring a multifaceted response. Global talent offshoring injects much-needed manpower and skills into freight operations at a time when local labor is scarce. Automation amplifies the productivity of each worker and reduces total headcount needs for routine roles. Companies that aggressively employ these tactics are weathering the talent crisis more effectively. A late-2023 report confirmed the approach: 76% of surveyed firms acknowledged shortages, and a majority are investing in tech and altering workforce strategies (like flexible hiring) to cope. Those that hesitate risk being left understaffed and unable to meet customer expectations. By contrast, a freight company that has an outsourced operations center handling night shifts and an AI-driven TMS automating load assignments can operate with a leaner, more resilient team. The bottom line: Offshoring and automation are not about replacing your people – they’re about ensuring all necessary work gets done in a tight labor market, and positioning your company to continue growing even when human resources are in short supply.