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Writer's pictureEquation Partners

Beyond the last mile: culture and talent management in digital logistics

By: Nicolás Mora, Managing Partner EQP



In the many conversations I have had this year with managers of logistics and transportation operations companies, it is always among their main concerns whether their company's current HR strategy is robust enough to attract, develop and retain talent in an increasingly competitive and digitized marketplace.


The digital revolution took hold of numerous industries, with logistics and the “last mile” being one that has experienced significant changes. As companies surf the waves of this transformation, CEO's and CHRO's find themselves facing a “crossroads”. This crossroads requires an HR culture capable of successfully addressing the leading place talent management is taking.


Automation and digitization have burst onto the logistics operations scene, demanding new skills and competencies from logistics professionals. Workers must not only adapt to technological tools but also align themselves with a digital mindset that allows them to explore innovative solutions in supply chain and delivery management. In this context, HR/Talent Management teams play a crucial role in identifying, developing and retaining the talent needed to propel logistics companies into a digitally robust future. Today, talent management involves technical competencies and soft skills such as critical thinking, creative problem solving and the ability to adapt to permanent change.


The “last mile” - known to be the final mile that connects products to consumers - faces particular challenges in this digital landscape. The demand for fast and personalized deliveries, together with an operation that responds to eco-friendly expectations (route optimization, electric vehicles, sustainable packaging, among others), drives the need to innovate in operational and human talent management strategies.


An effective HR plan in the logistics industry must therefore merge traditional skills with emerging digital competencies. It is essential to create work environments that favor continuous training and career development, which in turn will allow employees to evolve at the pace that technology dictates. Moreover, in the era of the Gig Economy (independent drivers and delivery drivers, flexible warehouses, etc.) and remote work, employment models are evolving day by day. HR guidelines must therefore be flexible enough to manage talent that can operate in multiple modalities: on-site, remote and project-based, for example.


Along the same lines, something that has been done for years in other sectors such as banking and retail, analytics and big data are becoming a central tool for HR areas, allowing them to explore patterns, foresee trends and make decisions based on concrete and updated information. Using this data to better understand the needs, preferences and behaviors of employees can lead to more humanized and efficient strategies.


Technology, in short, should be seen as an enabler to create more inclusive, flexible and innovation-friendly work environments. Talent management in the logistics industry must be able to strategically unite technological efficiency with human development, thus boosting operations and ensuring “last mile” delivery that is efficient and sustainable and, above all, deeply aligned with the expectations of the digital consumer.

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