While identifying and recruiting supply chain talent can be a headache for many companies, Charlie Saffro of CS Recruiting has made it her mission to help them find the right fit, one position at a time.
FINDING AND MAINTAINING adequate staffing is arguably the biggest challenge supply chains face today. Warehouse managers struggle to find enough workers to keep their facilities running. Trucking companies are chronically short of drivers. And technology companies and service providers can’t find the talent they need to move their operations forward. For many companies, hiring challenges also put a strain on current employees, creating difficulties in retention. Seeing a need for direct recruiting/retention services within the logistics, transportation, and supply chain markets, Charlie Saffro, president and founder of CS Recruiting, has made it her mission to help these companies tackle the complexities of hiring and retaining talent, one job at a time.
With a background in advertising, Saffro says she “fell” into both recruiting and the supply chain industry. “Yet looking back, there's no doubt that this was always my path,” she says.
Over the past 13-plus years, she has dedicated her time and energy to matching many different types of talent—individuals that do everything from sales to operations, customer support to planning, and everything in between—to the right companies. “Every job we take on is an opportunity to learn from our client and the candidates we meet,” explains Saffro.
During a recent CSCMP “Supply Chain in the Fast Lane” podcast interview, Supply Chain Quarterly Managing Editor Diane Rand spoke with Saffro to find out what she’s learned about hiring and retaining supply chain talent—specifically, what works and what’s a waste of time and money.
NAME: Charlie Saffro
TITLE: President and founder of CS Recruiting
PREVIOUS EXPERIENCE: human resources and logistics recruiter at Real Time Freight Services LLC, account supervisor for advertising agency TPN, and account manager at advertising services company Upshot
LEADERSHIP: Executive Committee of CSCMP; the Science Advisory Board at Manhattan Associates; Chair for the Supply Chain and Analytics Advisory Board at the University of Missouri–Saint Louis; member of the McKelvey Engineering Alumni Advisory Board at Washington University
EDUCATION: Bachelor’s degree in business from University of Illinois Urbana–Champaign.
Q: You presented a session at last fall’s CSCMP Edge Conference with the intriguing title “You can’t recruit if you can’t retain.” Can you explain what you mean by that?
Yes. We see ourselves as different types of recruiters in the sense that we really focus on matching the right person with the right company, and we are very focused on the **ital{human} as part of the process.
I truly believe that in order to recruit well, you have to start with a solid retention strategy. Assuming a business is established, it already has at least one employee, and that is where the recruiting process begins. Having a culture and a certain vibe in the way a company treats its employees internally is what it’s all about right now. Employers need to start by looking internally and figuring out what they offer to their current team members. Where do they fall short? Because at the end of the day, that all translates right back into their recruiting strategy and tactics.
Not only are you creating “culture champions” and word-of-mouth referrals, but you are also fostering a positive perception of your talent brand when you can retain well. Then, as you transition into that recruiting step, you are able to sell an exciting opportunity to candidates. You can use examples of team members who have had successes and examples of how your culture works and how your employees feel because those are really what candidates are looking for right now. I truly believe that it starts with retention, and then you leverage that culture and that retention piece that you’ve built to recruit new talent for your team.
Q: On the other side of the coin, what are the most common reasons that supply chain managers leave a company? Is it all about the money, or is it something else?
It is not all about the money anymore. Definitely money is a factor—I can’t deny that everybody works to support themselves and achieve financial security. I put money into the same bucket as benefits and maybe some additional incentives.
However, since the onset of COVID, I think the mentality in the candidate market has changed dramatically. Maybe money was the number-one reason people looked elsewhere before the pandemic, but now it is probably the fourth or fifth reason.
When it comes to why people leave a company, I’d say the number-one reason is workplace toxicity—companies that have toxic environments. That is really what we hear most often from candidates that are either actively or passivelylooking for a new opportunity. A toxic environment can stem from a number of things. It can be poor leadership, poor management, lack of recognition, or burning people out by not recognizing or understanding their capacity limits.
There is also a [whole population] out there that feels they are approaching the ceiling in their company, meaning that they won’t be going anywhere unless their boss goes somewhere, and their boss won’t be going anywhere unless **ital{their} boss goes somewhere.
Candidates want to feel challenged. They want responsibility, and they want to do more. So when they hit that ceiling—that is, they feel they’re ready for the next step, but the company isn’t there to support them—they’ll go out and look externally to grow their career vertically.
Those are really the two things that are coming up before money right now in terms of why people are leaving. What I call “culture” is the first reason, and opportunity is the second.
Q: What are some retention practices you’ve seen that truly work?
I can speak from experience here. When I started my firm, I was a one-woman show for the first year, and then I slowly built a team. Today, we have 40 employees, so I really try to practice what I preach. I use my team as an opportunity to beta test and experiment—to take ideas and see how our team responds to them. What I’ve found is that it comes down to employees wanting to be seen and heard.
There are a number of tactics and policies that companies can implement in this regard, but it starts on day one with the interview process. Candidates want companies that communicate with them, that are transparent with them, and that want to get to know who they are beyond their résumé.
Then once that candidate has joined the company, employers really need to pay attention to the onboarding and development process to ensure the new hire feels connected to the team from day one. Introduce them to various team members, and maybe let them shadow [their new colleagues] and get to know the people they’re going to be working with.
Then as they start to notch up some wins, you need to have a really solid recognition and appreciation program in place. Recognition and appreciation don’t always have to cost money. They certainly can, but it can also be public and private shout-outs, handwritten notes, or announcing internal promotions on a public platform like LinkedIn. What all of these retention tactics come down to is one-on-one attention from leadership. Employees want to be seen and heard.
Q: What are some retention practices you’ve seen that are not effective?
We joke about it now, but putting in a ping-pong table or hosting a happy hour at five o’clock every Thursday doesn’t work anymore. I personally worked at a really great company in my second job out of college. It was in marketing, and the company’s “retention tactics” included some amazing perks. We had an in-house chef who would make us three meals a day. We had an in-house masseuse, and believe it or not, we were required to get a massage once a week. While it was great and it really appealed to me at that point in my career, now I look back and I kind of chuckle because those were just strategies to keep me at the office and keep me working.
What is working is flexibility. When employees have flexibility, they feel trusted, and when employees feel trusted, they are happy, and they’re going to be more productive and more passionate about the work they’re doing.
Businesses are cautiously optimistic as peak holiday shipping season draws near, with many anticipating year-over-year sales increases as they continue to battle challenging supply chain conditions.
That’s according to the DHL 2024 Peak Season Shipping Survey, released today by express shipping service provider DHL Express U.S. The company surveyed small and medium-sized enterprises (SMEs) to gauge their holiday business outlook compared to last year and found that a mix of optimism and “strategic caution” prevail ahead of this year’s peak.
Nearly half (48%) of the SMEs surveyed said they expect higher holiday sales compared to 2023, while 44% said they expect sales to remain on par with last year, and just 8% said they foresee a decline. Respondents said the main challenges to hitting those goals are supply chain problems (35%), inflation and fluctuating consumer demand (34%), staffing (16%), and inventory challenges (14%).
But respondents said they have strategies in place to tackle those issues. Many said they began preparing for holiday season earlier this year—with 45% saying they started planning in Q2 or earlier, up from 39% last year. Other strategies include expanding into international markets (35%) and leveraging holiday discounts (32%).
Sixty percent of respondents said they will prioritize personalized customer service as a way to enhance customer interactions and loyalty this year. Still others said they will invest in enhanced web and mobile experiences (23%) and eco-friendly practices (13%) to draw customers this holiday season.
The practice consists of 5,000 professionals from Accenture and from Avanade—the consulting firm’s joint venture with Microsoft. They will be supported by Microsoft product specialists who will work closely with the Accenture Center for Advanced AI. Together, that group will collaborate on AI and Copilot agent templates, extensions, plugins, and connectors to help organizations leverage their data and gen AI to reduce costs, improve efficiencies and drive growth, they said on Thursday.
Accenture and Avanade say they have already developed some AI tools for these applications. For example, a supplier discovery and risk agent can deliver real-time market insights, agile supply chain responses, and better vendor selection, which could result in up to 15% cost savings. And a procure-to-pay agent could improve efficiency by up to 40% and enhance vendor relations and satisfaction by addressing urgent payment requirements and avoiding disruptions of key services
Likewise, they have also built solutions for clients using Microsoft 365 Copilot technology. For example, they have created Copilots for a variety of industries and functions including finance, manufacturing, supply chain, retail, and consumer goods and healthcare.
Another part of the new practice will be educating clients how to use the technology, using an “Azure Generative AI Engineer Nanodegree program” to teach users how to design, build, and operationalize AI-driven applications on Azure, Microsoft’s cloud computing platform. The online classes will teach learners how to use AI models to solve real-world problems through automation, data insights, and generative AI solutions, the firms said.
“We are pleased to deepen our collaboration with Accenture to help our mutual customers develop AI-first business processes responsibly and securely, while helping them drive market differentiation,” Judson Althoff, executive vice president and chief commercial officer at Microsoft, said in a release. “By bringing together Copilots and human ambition, paired with the autonomous capabilities of an agent, we can accelerate AI transformation for organizations across industries and help them realize successful business outcomes through pragmatic innovation.”
Census data showed that overall retail sales in October were up 0.4% seasonally adjusted month over month and up 2.8% unadjusted year over year. That compared with increases of 0.8% month over month and 2% year over year in September.
October’s core retail sales as defined by NRF — based on the Census data but excluding automobile dealers, gasoline stations and restaurants — were unchanged seasonally adjusted month over month but up 5.4% unadjusted year over year.
Core sales were up 3.5% year over year for the first 10 months of the year, in line with NRF’s forecast for 2024 retail sales to grow between 2.5% and 3.5% over 2023. NRF is forecasting that 2024 holiday sales during November and December will also increase between 2.5% and 3.5% over the same time last year.
“October’s pickup in retail sales shows a healthy pace of spending as many consumers got an early start on holiday shopping,” NRF Chief Economist Jack Kleinhenz said in a release. “October sales were a good early step forward into the holiday shopping season, which is now fully underway. Falling energy prices have likely provided extra dollars for household spending on retail merchandise.”
Despite that positive trend, market watchers cautioned that retailers still need to offer competitive value propositions and customer experience in order to succeed in the holiday season. “The American consumer has been more resilient than anyone could have expected. But that isn’t a free pass for retailers to under invest in their stores,” Nikki Baird, VP of strategy & product at Aptos, a solutions provider of unified retail technology based out of Alpharetta, Georgia, said in a statement. “They need to make investments in labor, customer experience tech, and digital transformation. It has been too easy to kick the can down the road until you suddenly realize there’s no road left.”
A similar message came from Chip West, a retail and consumer behavior expert at the marketing, packaging, print and supply chain solutions provider RRD. “October’s increase proved to be slightly better than projections and was likely boosted by lower fuel prices. As inflation slowed for a number of months, prices in several categories have stabilized, with some even showing declines, offering further relief to consumers,” West said. “The data also looks to be a positive sign as we kick off the holiday shopping season. Promotions and discounts will play a prominent role in holiday shopping behavior as they are key influencers in consumer’s purchasing decisions.”
Third-party logistics (3PL) providers’ share of large real estate leases across the U.S. rose significantly through the third quarter of 2024 compared to the same time last year, as more retailers and wholesalers have been outsourcing their warehouse and distribution operations to 3PLs, according to a report from real estate firm CBRE.
Specifically, 3PLs’ share of bulk industrial leasing activity—covering leases of 100,000 square feet or more—rose to 34.1% through Q3 of this year from 30.6% through Q3 last year. By raw numbers, 3PLs have accounted for 498 bulk leases so far this year, up by 9% from the 457 at this time last year.
By category, 3PLs’ share of 34.1% ranked above other occupier types such as: general retail and wholesale (26.6), food and beverage (9.0), automobiles, tires, and parts (7.9), manufacturing (6.2), building materials and construction (5.6), e-commerce only (5.6), medical (2.7), and undisclosed (2.3).
On a quarterly basis, bulk leasing by 3PLs has steadily increased this year, reversing the steadily decreasing trend of 2023. CBRE pointed to three main reasons for that resurgence:
Import Flexibility. Labor disruptions, extreme weather patterns, and geopolitical uncertainty have led many companies to diversify their import locations. Using 3PLs allows for more inventory flexibility, a key component to retailer success in times of uncertainty.
Capital Allocation/Preservation. Warehousing and distribution of goods is expensive, draining capital resources for transportation costs, rent, or labor. But outsourcing to 3PLs provides companies with more flexibility to increase or decrease their inventories without any risk of signing their own lease commitments. And using a 3PL also allows companies to switch supply chain costs from capital to operational expenses.
Focus on Core Competency. Outsourcing their logistics operations to 3PLs allows companies to focus on core business competencies that drive revenue, such as product development, sales, and customer service.
Looking into the future, these same trends will continue to drive 3PL warehouse demand, CBRE said. Economic, geopolitical and supply chain uncertainty will remain prevalent in the coming quarters but will not diminish the need to effectively manage inventory levels.
That result came from the company’s “GEP Global Supply Chain Volatility Index,” an indicator tracking demand conditions, shortages, transportation costs, inventories, and backlogs based on a monthly survey of 27,000 businesses. The October index number was -0.39, which was up only slightly from its level of -0.43 in September.
Researchers found a steep rise in slack across North American supply chains due to declining factory activity in the U.S. In fact, purchasing managers at U.S. manufacturers made their strongest cutbacks to buying volumes in nearly a year and a half, indicating that factories in the world's largest economy are preparing for lower production volumes, GEP said.
Elsewhere, suppliers feeding Asia also reported spare capacity in October, albeit to a lesser degree than seen in Western markets. Europe's industrial plight remained a key feature of the data in October, as vendor capacity was significantly underutilized, reflecting a continuation of subdued demand in key manufacturing hubs across the continent.
"We're in a buyers' market. October is the fourth straight month that suppliers worldwide reported spare capacity, with notable contractions in factory demand across North America and Europe, underscoring the challenging outlook for Western manufacturers," Todd Bremer, vice president, GEP, said in a release. "President-elect Trump inherits U.S. manufacturers with plenty of spare capacity while in contrast, China's modest rebound and strong expansion in India demonstrate greater resilience in Asia."