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The Workforce Strategies Supply Chain Leaders Will Need to Employ for the Next 4 Years

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The Workforce Strategies Supply Chain Leaders Will Need To Employ For The Next 4 Years

Foster Finley, coauthor of this article

The upcoming Trump administration has signaled a number of trade and immigration initiatives that will significantly impact supply chain strategies for the next four years and beyond. The potential for business disruption and impact on the bottom line of many companies will cause the C-suites to turn to supply chain leaders to mitigate higher costs and labor shortages. This post focuses on what to do in what could be a very challenging labor market.

To understand what is happening and its impact on supply chain strategies, let’s look at what has been announced so far that could impact the labor market. It has been proposed that 2 to 11 million illegal aliens will be deported.

Before considering the impact of any efforts to remove illegal aliens let’s review what has been happening to the U.S. workforce for decades. The use of illegal aliens in the U.S. workforce has been well underway for over 50 years and, in many cases, embedded in the economic models of many industries such as construction, agriculture, domestic and janitorial services, landscaping, and many forms of manufacturing.

There are fewer U.S.-born people entering the job market because the birth rate in the U.S. has been declining for decades, and the birth replacement rate has not been met for 50 years. Further, the U.S. has been operating at almost record low levels of unemployment (3.7% to 4.1%) for 3 years and workforce participation has stabilized. This has consequences. From the middle of 2020 until today, supply chain organizations have been under intense pressure to find and retain quality resources – labor and knowledge workers.

Taking resources out of the U.S. labor market through mass deportation will put extreme cost and availability pressure on the overall labor market. As was seen during the pandemic, when there was also an extreme labor shortage, workers crossed industries to make more money. This is now a learned lesson for many workers and there is no reason expect that behavior to change as those industries most impacted by deportation or the threat of it, scramble to find workers to fill open positions.

The timing and level of deportation is uncertain, but when it does happen there will be resource scarcity shock waves rolling across industries and geographies. An obvious impact will be on the higher cost of those that are available. However, there is likely to be revenue impacts for those companies that cannot make up for the labor shortfall because they cannot get products to the market on time or at all.

The challenges retaining and recruiting supply chain talent have been underway for a number of years will increase. To mitigate the impact of impending tighter labor constraints, supply chain leaders will need to focus more of their efforts on becoming the employer of choice to retain and recruit resources while reducing their dependence upon labor in general.

The first action supply chain leaders should be on policies and practices that strengthen workforce retention. Replacement is going to get much harder because of an increasingly reduced pool of available resources and what we continue to hear from supply chain leaders, lower quality resources in the market.

The second action is to reduce the dependence upon supply chain labor and seasonal hiring. Supply chains are labor intensive, and the need for labor is not going away, but the impact of shortages can be mitigated through hard and soft automation. Repetitive tasks can be moved from humans to machines and robots.

The productivity of existing labor resources can be dramatically improved, reducing the number of manufacturing and warehouse workers and drivers needed or minimizing the need to hire as many seasonal workers as in the past. However, supply chain leaders need to act quickly here as we hear that lead times for automation equipment and resources to implement them has become extended.

The last action is to improve hiring practices and focus on non-cash benefits that attract new resources. Compensation will not be a differentiator unless your organization is willing to go well beyond industry norms for pay. At best, it will be temporal as others recognize your efforts. There are other ways such as flexible working hours, skills training, etc. that potential workers value highly and differentiate during the hiring process.

Two of the bigger wildcards in the deportation discussion are what industries and geographies get impacted first and the most. One way to look at this is to consider the states closest to the Southern U.S. border and their political leaning. For example, Texas and Arizona are more likely to see deportation move quickly than California. The same thoughts could be applied further inland. This is likely to affect smaller and regional rather than larger businesses as the larger ones have traditionally stricter hiring practices and greater regulations.

Supply chain leaders should also evaluate suppliers based on border or adjacent states to determine the vulnerability to a resource shortage. It’s not just whether they were using illegal aliens, but rather, are they at risk of losing labor to others willing to pay more to make up for their own shortfalls?

The U.S. labor market is extremely complicated and entwined and unwinding the illegal alien situation that has been evolving over the last 50 years. Because “illegals” are deeply embedded in many industries, there will be unintended consequences to the overall workforce and supply chains in particular.

Protecting the supply chain workforce will be critical for the next four years as they are becoming more valuable given an impending reduction in available workers and proposed tariffs dissenting offshoring. Supply chain leaders need to be able to communicate to the C-suite that there is significant potential for higher labor costs but, equally important, fewer workers, which could impact top-line performance.

Investment in solutions that improve worker productivity or eliminate traditional labor-based operations must be prioritized to minimize the upcoming impact on resources.

Chris Jones is a supply chain industry veteran with over 40 years of a broad range of hands-on leadership experience. He was Executive Vice President at Descartes Systems for 19 years leading Marketing, Services, Product Management and Development at various times during his tenure. He helps supply chain executives understand how to transform their operation’s performance and expand its impact on the business.

Foster Finley has over 37 years of industry and consulting experience. He was a Managing Director at AlixPartners, the global business advisory firm, and co-lead the firm’s global Operations Practice. He has a long track record of high-impact, complex project planning and execution for operations-intensive clients across many industries.

The post The Workforce Strategies Supply Chain Leaders Will Need to Employ for the Next 4 Years appeared first on Logistics Viewpoints.

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Supply Chain Planning Is Collapsing Into Execution and That Changes the Software Stack

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Executive thesis. The traditional separation between planning and execution is becoming structurally obsolete. Competitive advantage is shifting from producing a better periodic plan to shortening the cycle from operating signal to decision to executable response.

Periodic planning is giving way to continuous decision cycles

The legacy model assumed that supply chain planning was organized around periodic cycles: assemble the data, produce a forecast, optimize a plan, publish it, and then let execution teams absorb the consequences. That model is difficult to sustain when demand, inventory, transportation capacity, labor, supplier performance, and customer commitments can change faster than the formal planning cadence. The material shift is not that planning disappears. It is that planning becomes a continuously refreshed decision process that sits much closer to execution.

Execution constraints now define whether a plan is credible

A plan is only as credible as its understanding of the constraints that determine whether it can be executed. Available inventory, dock capacity, carrier acceptance, labor, production status, supplier reliability, and warehouse throughput can no longer be treated as downstream details. As those signals move upstream, planning systems need tighter connections to systems of execution and a more explicit model of what is feasible now—not what is mathematically desirable.

The architecture is reorganizing around decisions, not application silos

This changes the technology architecture. Traditional planning platforms, control towers, visibility systems, decision-intelligence layers, and execution applications overlap around the same questions: what changed, what is the business impact, what alternatives exist, and which action should be taken? The answer is unlikely to be one monolithic application. It is more likely to be an architecture in which planning models, event data, enterprise context, decision logic, and execution services interact with far less latency than they did in the classic plan-then-execute model.

Decision latency is becoming a first-order performance metric

The implication for supply chain leaders is that planning quality cannot be judged only by forecast accuracy or optimization quality. Decision latency matters as well. A technically superior plan that arrives after the operating window has closed has limited value. Enterprises should therefore examine how quickly their architecture can detect a material deviation, recalculate the relevant alternatives, expose tradeoffs, obtain the required approval, and propagate the decision into execution.

Buyer criteria must move from module coverage to decision performance

The evaluation question is no longer whether a planning product has the right modules. Buyers need to test how the system behaves when the operating environment departs from the plan. As a result, using real constraints, real data dependencies, realistic exception scenarios, and the systems that will ultimately execute the response. The strongest planning architecture will not eliminate judgment. It will make judgment faster, better informed, and easier to convert into controlled action.

For organizations reevaluating planning technology, the practical starting point is to define the decisions the planning environment must support, the constraints that make those decisions executable, and the evidence required to trust the result. The Logistics Viewpoints Supply Chain Planning Software: Buyer’s Guide provides a structured framework for that evaluation, including planning scope, architecture, scenario analysis, integration, and buyer proof points.

Executive implication

Leaders should evaluate planning technology as part of a continuous decision system, with execution constraints, decision latency, and closed-loop response treated as core design criteria.

Go deeper: provides the durable buyer, architecture, and implementation reference for this topic. Planning, Execution & Visibility connects this analysis to the broader Logistics Viewpoints research architecture.

Related Logistics Viewpoints research

2026 Supply Chain Planning Market Map
2026 Supply Chain Decision Intelligence Market Map

Go Deeper

Read the full Supply Chain Planning Software: Buyer’s Guide.

Explore the broader Planning, Execution & Visibility domain for related Logistics Viewpoints research and analysis.

The post Supply Chain Planning Is Collapsing Into Execution and That Changes the Software Stack appeared first on Logistics Viewpoints.

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Why WMS Architecture Now Matters as Much as Feature Breadth

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Warehouse management systems are being pushed into a continuously changing execution environment, making architecture as important as feature breadth. The pressure is not simply to add more automation or AI, but to keep the operating plan aligned with physical reality as that reality changes.

Labor scarcity, tighter customer cutoffs, omnichannel fulfillment, higher sku complexity, automation investment, faster order cycles, and the need to coordinate people and machines in real time are shortening the useful life of any plan. A decision that was correct an hour ago can become wrong when a carrier rejects, a dock closes, an order changes, a piece of automation fails, or a priority customer needs a different response. That architectural emphasis follows naturally from The Warehouse Is Becoming a Cyber-Physical System, where software design directly shapes the behavior of labor, automation, inventory, and physical flow.

The relevant operating events include a late inbound trailer, a constrained dock, a wave that threatens a carrier cutoff, an automation cell that goes down, or an urgent order that must be reprioritized without destabilizing the rest of the facility. These are not unusual edge cases; they are the normal variability of modern logistics. The market is therefore rewarding platforms that can absorb change without forcing every exception into a manual coordination loop.

Architecture is becoming a product differentiator

The operating architecture is ERP and OMS upstream; WMS at the inventory-and-work core; WES/WCS, robotics, conveyors, sortation, labor systems, YMS, parcel, and TMS around the execution edge. This means provider differentiation increasingly depends on event latency, API and network connectivity, data-model quality, workflow controls, and the ability to preserve a coherent operating state across boundaries.

Feature parity can hide large architectural differences. One platform may expose an event after the fact; another may use that event to re-evaluate priorities, prepare a response, and push a governed action into the next system. Both can claim visibility or AI. Only one has compressed the operating loop.

AI matters when it changes the decision cycle

The next layer of value is not AI as a separate product. It is intelligence embedded into the decisions the category already owns. WMS is moving from a transactional warehouse application toward a real-time execution and orchestration layer that coordinates inventory, labor, automation, and downstream transportation constraints The strongest use cases combine reliable execution data, explicit constraints, explainable recommendations, and controlled action rather than treating a model output as the endpoint.

A serious evaluation should test operational fit, configurability without excessive customization, automation integration, real-time work orchestration, data and API architecture, scalability, implementation model, upgradeability, and measurable warehouse outcomes. Buyers should also measure inventory accuracy, order cycle time, throughput, labor productivity, dock-to-stock time, order accuracy, exception volume, automation utilization, and recovery time after disruption. Those measures reveal whether the new capability is actually improving flow, responsiveness, cost, and service or simply creating more software activity.

The market shift is therefore structural. Technology boundaries are blurring because the work itself is becoming more connected. Providers that understand the operating loop will increasingly look different from products built around a static transaction model.

Architecture shows up in warehouse operating metrics

Architecture can sound abstract until it is translated into the measures a distribution center already cares about. Event latency affects how quickly supervisors react to a blocked zone. Integration quality affects whether automation receives the right work at the right time. Data integrity affects inventory accuracy and pick completion. Decision orchestration affects dwell, cutoff performance, backlog, and the amount of work managers have to manually resequence.

For that reason, buyers should connect architecture questions to measurable outcomes. Ask providers to demonstrate what happens when an inbound trailer is late, a work area becomes constrained, an automation cell stops, or an urgent customer order enters after work has been released. The stronger platform is the one that preserves a coherent operating state and adapts without requiring a chain of manual reconciliation.

Related Logistics Viewpoints research

2026 Warehouse Management Systems Market Map
The New Architecture of Logistics
Systems Engineering in Logistics
The Digital Backbone of the Warehouse: Trends Shaping the 2026 WMS Market
Previous in this series: What Is a WMS in 2026? The Warehouse Management System Is Becoming Something More

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The 2026 Market Map is designed to help organizations understand the structure of the WMS market, evaluate provider differences, and identify the capabilities most relevant to their operating environment. If your organization is evaluating WMS platforms or preparing a shortlist, I would be glad to provide the Market Map brochure and discuss the evaluation questions and provider differences most relevant to your requirements.

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Shipsy Connects Transportation Orchestration With Exception Response

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Transportation management is expanding beyond planning loads and tendering freight. Modern platforms are increasingly expected to coordinate carriers, track execution, optimize routes, manage exceptions, communicate with stakeholders, and use live operating data to adjust decisions while freight is moving.

Shipsy is positioned around that broader logistics-orchestration model. Its cloud platform spans transportation management, carrier allocation, freight procurement, shipment tracking, route optimization, first-mile through last-mile workflows, and analytics. The company also emphasizes AI-enabled capabilities intended to automate planning and execution decisions across increasingly complex logistics networks.

The connection to exception management is significant. Transportation generates a constant stream of deviations: capacity changes, missed pickups, route delays, delivery risks, documentation problems, and customer-service exceptions. A platform that already coordinates transportation workflows has the opportunity to detect those events, assess their impact, and automate an appropriate response inside the same operating environment.

The buyer question is how well those capabilities scale across real-world complexity. Organizations should evaluate optimization quality, carrier and system connectivity, geographic depth, data latency, workflow configurability, and governance for automated actions. The most useful AI in transportation will be the AI that reliably improves execution, not simply the AI that adds another interface.

Shipsy is included in the Logistics Viewpoints Transportation Management Systems MarketMap and Autonomous Exception Management MarketMap. The combination reflects the increasingly close relationship between transportation management and the systems responsible for identifying and resolving operational exceptions.

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