Germany has 21,825 active warehouse logistics apprentices in training across the country, all working towards a single qualification called Fachkraft für Lagerlogistik.

The Bundesagentur für Arbeit lists it as the fifth most-offered training occupation in Germany.

The UK does not have a comparable number. What we have is a sector of 2.7 million people, contributing £170 billion of GVA, growing faster than nearly every other industry since 2012. We have a chronic shortage of warehouse operatives, drivers and transport planners. We are paying wage premiums of 25 to 49 percent above national earnings growth on those roles to compensate. And we have one of the worst operational training pipelines of any major European logistics market.

That gap is the predictable outcome of design choices the sector has been making for years, and most senior leaders are still making them now without realising.

This piece comes out of episode 12 of the Supply Chain:Beyond The Hype podcast (listen on Spotify or Watch on YouTube), where Dr Andrew Ross of the University of Bath and Dr Helen Ross discussed where young people go after sixteen and how UK education feeds the workplace. The conversation turned out to be unexpectedly important for anyone running a logistics or supply chain operation at scale.

Nobody can see us

The most uncomfortable line in the conversation came from Helen Ross. She did her engineering degree alongside my wife Emma. She watched Emma join the Christian Salvesen graduate scheme and start a career in supply chain. And she still said, on the record,

“I wouldn’t have known what on earth a logistics career would have entailed.”

That is someone with an engineering degree and a close personal connection to a supply chain professional, who still could not have told you what the industry was when she left university.

Andy Ross runs the access and outreach programme at the University of Bath. His team works with schools every day. His comment on supply chain as a destination was direct.

“It’s certainly not a conversation I’ve ever had with a kid.”

Logistics is the second-largest employer growth area in the UK economy. It generates around 8 percent of national GVA. It has no T Level. The closest sector marketing campaign, Generation Logistics, runs on around £345,000 of DfT money matched by private sponsorship. EngineeringUK operates at several orders of magnitude more, with named CEOs publicly attached. The sector has not done the marketing job.

The levy is funding the wrong people

UK employers paid around £4 billion into the apprenticeship levy in 2024 to 2025. The DfE protected apprenticeship budget in England was £2.73 billion. Around £500 million went to devolved nations. The balance, in excess of £800 million, was retained by the Treasury. Between 2019 and 2022, a further £3.3 billion of unspent levy expired.

Inside the spending that did happen, the centre of gravity has moved sharply up the qualification ladder. Total English apprenticeship starts hit 353,500 in 2024 to 2025. Level 6 and Level 7 starts grew by 20.4 percent year on year. Level 7 alone consumed £238 million of the apprenticeship budget in 2023 to 2024, up from £12 million in 2017 to 2018. Level 2 starts fell by 7.3 percent and now account for 18.6 percent of all starts, down from 43 percent seven years ago.

The two apprenticeship standards that actually staff operational logistics, LGV Driver C+E and Supply Chain Warehouse Operative, are both Level 2. Both sit in the shrinking part of the system.

Andy made the point cleanly in the podcast. The new “gold standard” target, he said, will mostly mean more university places, not more apprenticeships, because both routes are recruiting from the same pool.

“They’re top slicing the same group of students.”

The standards that should be feeding the warehouse floor and the cab are competing for the same high-attaining school leavers that universities want.

Most large 3PLs talk publicly about their apprenticeship strategy by reference to their degree apprenticeships. Those degree programmes are valuable. They are also not a workforce pipeline for a logistics operation. They are an upskilling track for managers and high-potentials already inside the business. If your operational headcount problem sits at supervisor, picker, transport planner and driver level, your apprenticeship strategy at degree level is solving a different problem.

The 50 percent levy transfer flexibility, increased from 25 percent in April 2024, is barely used. Around 500 employers in total had pledged any transfer via the official service as of early 2024, totalling around £37 million. That is roughly 2 percent of levy-paying employers using the mechanism designed to push money toward the SMEs and subcontractors who run a substantial share of the operational workforce.

The gateway behind the gateway

There is a further filter that decides who can even start. To begin an apprenticeship at any level, a 16 to 18 year-old in England has to hold Level 2 maths and English. Most of them cannot demonstrate it on entry.

In 2024, 70.4 percent of 16-year-olds achieved grade 4 or above in maths and English. Among pupils with any identified special educational need, the rate was 30.4 percent. Among pupils without SEN, it was 72.1 percent. The gap is 41.7 percentage points. For apprentices who do start without that qualification and have to study Functional Skills alongside their vocational training, analysis of more than 160,000 apprentices found the drop-out rate is almost double that of apprentices without a Functional Skills aim. Ninety percent of overruns are attributable to Functional Skills, not to vocational competence.

Helen put it plainly in the podcast.

“We are writing off huge numbers of children.”

She is talking about the same children who, by cognitive profile, often have the pattern recognition, logical sequencing and systems thinking that supply chain runs on. The school system is filtering them out before we ever see them at interview.

Five things for the next board paper

1. Audit your levy spend by level. If less than 60 percent is going on Level 2 and Level 3 operational standards, your levy is not funding your operational pipeline.
   
2. Use the 50 percent transfer flexibility. If you have more than six months of unspent allowance sitting in the digital account, that money is cheaper to transfer to an SME haulier or 3PL subcontractor in your region than to forfeit.
   
3. Redesign the gateway, not the standard. Front-load Functional Skills support before standard entry. Target candidates with grade 3 GCSE maths and English who can be supported into a successful Level 2 pass alongside their vocational training.
   
4. Fund Generation Logistics like you mean it. Your annual agency premium probably exceeds the entire sector contribution to schools marketing.
   
5. Press for a T Level in Logistics and Supply Chain. Engineering, finance, healthcare and digital have one. We do not.

Final thoughts from me

I said earlier in the podcast that my degree got me an interview. My experience stacking shelves at Morrison’s got me the job. In the interview I talked about how stock was being ordered and how it could be ordered more efficiently. That is essentially supply chain.

This is not an argument against university. It is an argument against believing the industry I have spent my career in is reaching the next generation, because the evidence says we are not. We have an operational shortage at Level 2 and Level 3, and a levy that pours money into Level 6 and Level 7. We have a pool of young people whose cognitive profiles are well-matched to a sector that depends on pattern recognition, and a Functional Skills gateway that excludes them before they reach an interview.

The encouraging part is that most of this is solvable at the firm level, this quarter, without waiting for government reform. The five-point board paper is short and the budget is already paid in.

The only question is whether the people running 3PLs, manufacturers and major retailers are willing to spend their levy on the apprentices their operation actually needs, rather than on the ones it would prefer to be photographed with.

The first is 58%.

That is the share of UK manufacturers who told Medius they are actively reshoring, with 82% planning to accelerate. Add Make UK’s survey, where 70% of British manufacturers expect reshoring to pick up further under the new industrial strategy, and Capgemini’s latest research showing European and US executives still committing trillions to reindustrialisation, and you have the most confident boardroom consensus on industrial policy in forty years.

The second is minus 311.

That is the points drop in Kearney’s 2025 US Reshoring Index, which tracks actual import flows rather than surveyed intent. Imports from 14 Asian low-cost countries grew 10% in 2025, while US domestic manufacturing output crept up 1%. ING’s November 2025 eurozone analysis is blunter still, noting “very limited evidence of actual reshoring activity” across the single currency area. EU imports from China rose 6.4% in 2025 to €559.4 billion, widening the bilateral deficit to €359.8 billion. And Capgemini’s own 2026 edition, published this month, shows planned investment over the next three years has fallen from $4.7 trillion in 2025 to roughly $2.5 trillion in 2026. The appetite for strategy is up, the appetite for actually spending the money is way down.

Both sets of numbers are correct, because surveys measure what boards intend to do, and import and investment data measure what procurement teams and CFOs actually sign off. The gap between intent and execution has become the single most important piece of context for any supply chain leader planning a 2026 sourcing strategy.

There is a third number that matters more than either of them, however, and that’s 14%.

That is the share of EU sourcing that QIMA recorded as nearshoring or reshoring in 2025, an all-time high, with Mediterranean inspection demand up 25% year on year. Production is genuinely moving, but it is moving somewhere very specific. Not Birmingham, Stuttgart or Lyon. It is moving to Tangier, Debrecen and Porto. Europe’s industrial revival, to the extent there is one, is happening on the continent’s periphery rather than in its historical core.

Where the production is actually going

The verifiable data, the stuff you can count in shipping manifests and factory openings, tells a consistent story. The winners are Morocco, Egypt, Poland, Hungary and Portugal. QIMA’s 2025 inspections, drawn from more than 30,000 clients, show Egypt inspection demand up 52% year on year, Morocco up 38% and Tunisia up 18%. Turkey is a notable absence. QIMA’s own analysts flagged that Turkish textiles struggled with rising costs and labour shortages in 2025, and orders that might historically have gone there were reallocated to Egypt and Morocco. These are not opinions from survey respondents, they are confirmed purchase orders on their way to being shipped.

Port data confirms the same pattern. Morocco’s Tanger Med handled 11.1 million TEUs in 2025, up 8.4%, with net profit jumping 22.3%. Slovenia’s Luka Koper set a record at 1.27 million TEUs, up 12%, on the back of hinterland supply into Central European factories. Piraeus, the traditional Asia-to-Europe gateway, saw container volumes fall 6%, and Trieste Marine Terminal had its worst year since 2016, dropping more than 28%. The traffic is leaving the eastern Mediterranean and concentrating in the western Med and the Adriatic, precisely where the new production is being installed.

The anchor investment is Stellantis at Kenitra. A €1.2 billion expansion inaugurated last July doubled capacity to 535,000 vehicles and allocated €702 million specifically to local supplier development. Morocco’s automotive exports hit a record $17 billion in 2024, already the largest industry on the African continent. The labour economics explain the rest. Oliver Wyman’s 2025 benchmark found Morocco produces a vehicle for $106 of direct labour cost, against $585 for Chinese manufacturers and $3,307 in Germany. Tanger Med has been running on 100% green electricity since January 2025 and has deep-water capacity for the ultra-large container vessels diverted round the Cape of Good Hope. The geography, the wage structure and the infrastructure stacked up just as the Red Sea fell over. That is not a coincidence, it is causation.

Why the heartland isn’t getting its factories back

The contrast with Europe’s industrial core is sharp, and the battery sector illustrates it painfully. Northvolt, the EU’s flagship home-grown gigafactory, filed for bankruptcy in March 2025 despite billions in project financing, including roughly €940 million of European Investment Bank backing. The Skellefteå plant has been sold to Lyten, an American lithium-sulfur battery firm. Meanwhile the dominant new battery builds in Europe are Chinese-financed. CATL’s €7.3 billion, 100 GWh plant in Debrecen, Hungary, is set to start production this year with 9,000 workers. The CATL-Stellantis joint venture in Zaragoza, 50 GWh of LFP capacity, starts late 2026.

A CATL plant in Hungary counts as European production on the press release, but it is Chinese capital, Chinese intellectual property and, in many cases, Chinese technical leadership operating on European soil with EU state aid behind it. McKinsey estimates Europe produces less than 10% of global battery cell capacity, and is misaligned on chemistry too, focused on NMC while demand is pivoting to LFP. The industrial base that was supposed to underpin Europe’s reshoring ambition has, in practice, become a licensing arrangement with the supplier everyone was trying to de-risk from.

The tailwind is fading

Two shifts are easing the pressure that drove the 2024 and 2025 moves, just as the contracts signed on that basis hit execution.

The Gemini Cooperation, Maersk and Hapag-Lloyd’s new alliance launched in February 2025, is delivering schedule reliability averaging around 90% in its first year, well ahead of an industry norm closer to 60%. That removes one of the biggest operational arguments for nearshoring, which was that long-haul Asian supply chains had become fundamentally unpredictable. And Suez is tentatively reopening. The October 2025 Gaza ceasefire brought major carriers back for the first time in two years, and canal revenue in the first quarter of the 2025/26 Egyptian fiscal year was up 18.5% year on year. Traffic is still roughly 60% below normal, but the direction of travel is clear.

Which puts the nearshoring moves of the last eighteen months to an immediate test. A Stellantis gigafactory at Kenitra is not reversible. A procurement memo about dual-sourcing very much is. We are about to find out which commitments were strategic and which were tactical.

What separates the moves that stick

Three operational patterns distinguish the nearshoring that is holding from the nearshoring that is wavering. Labour cost under €15 an hour, a pre-existing supplier ecosystem, and deep-water port access. Morocco stacks all three. Hungary has the labour and suppliers but relies on Chinese capital for the headline projects. Turkey has proximity and scale in textiles but has lost ground to Egypt on cost. The UK, for all the surveyed enthusiasm, has very little of any of these, and labour costs several multiples above those in Bulgaria, Romania or Morocco. The firms getting this right committed capital before they announced strategy. The firms still struggling announced strategy before they committed capital.

5 Key takeaways for supply chain leaders

1. Treat survey data with care. Intent metrics are running 20 to 30 percentage points ahead of physical reality. If your board assumes competitors are moving at the pace the surveys suggest, you are overestimating the shift.
   
2. The real action is on the periphery, not the core. If you are planning a nearshoring move this year, your best options are Morocco, Portugal, Poland or Hungary, not a domestic repatriation. The wage differential combined with EU trade access is decisive.
   
3. Supplier qualification is the binding constraint. Stellantis put €702 million into Moroccan suppliers alongside the plant expansion. The firms that have moved most successfully invested in local supplier development years before announcing the move. Without that, a new factory is just a shell.
   
4. Geography still wins. Tanger Med, Koper and Gdansk are absorbing volume because they combine labour arbitrage, EU trade access and port infrastructure in the same place. Inland sites without port access are losing out, even where the labour economics work.
   
5. Stress-test your business case against Suez reopening. Freight reliability is returning and long-haul shipping is looking more predictable than it has since 2023. Plan for a scenario where Asian sourcing looks economically attractive again by mid-2026, and make sure your nearshoring case stands up against that.

Final thoughts from me

What I keep coming back to with clients is the discipline of separating what is genuinely rewiring from what is posturing. In most of the companies I work with, reshoring has become a category on a strategy slide rather than a line item in a capital plan. That is fine as a hedge, but it does not change the supply chain. What changes the supply chain is a signed contract, a qualified supplier and a production line with an installation date.

If we look back on this period in five years, I suspect we will see 2024 and 2025 not as the start of European reindustrialisation, but as the period when Europe’s periphery cemented its place as the continent’s new industrial spine.

The question worth putting to your own team is whether your next sourcing decision reflects where the factories actually are, or where you wish they were.

Not 15 months. Fifteen years.

I have spent most of my career working with logistics and supply chain businesses across Europe, and in that time I have seen plenty of well-intentioned strategies collide with operational reality (anyone remember blockchain…?). But the gap between ambition and infrastructure when it comes to fleet electrification is unlike anything I have encountered before.

The conversation has moved on from “should we electrify?” to “when can we electrify?” And increasingly, the answer depends not on the vehicle manufacturers, but on something far less glamorous… the electricity grid.

The vehicles are ready. The grid is not.

Let’s start with the good news.

Every major European truck manufacturer now offers battery-electric models in series production. Mercedes-Benz’s eActros 600, voted International Truck of the Year 2025, delivers over 500 km of range at 40-tonne gross weight. DAF’s XF Electric won Truck of the Year 2026. Volvo, MAN and Scania all have electric ranges scaling rapidly.

The UK registered 587 zero-emission HGVs in 2025, a 170% increase on the previous year. Across the EU, electrically chargeable truck registrations rose 70% year on year. The Netherlands leads at over 18% electric truck share and Germany dominates by volume. Major fleet operators are moving too. Amazon placed the UK’s largest ever electric truck order with 140+ eActros 600 units. XPO Logistics is running six eActros 600 trucks for PepsiCo. DPD, Royal Mail, Wincanton and DFDS are all deploying electric HGVs.

The trucks exist and the orders are being placed, but can the infrastructure keep up. Right now – the answer’s no.

The 15-year queue and the depot charging dilemma

Over 76% of electric truck charging will happen at depots, not at public chargepoints.

This is what makes the grid connection bottleneck so critical. Most logistics parks were built decades ago for relatively modest power demands: lighting, heating and somerefrigeration. A fleet of 20 electric HGVs charging overnight needs 1 to 2 megawatts and fast-charging that same fleet during daytime turnarounds pushes demand to 3 to 8 megawatts. That is an entirely different order of magnitude from what the local grid was designed to supply.

The UK’s grid connection queue has risen tenfold in the past five years, reaching 125 gigawatts by mid-2025. SMMT chief executive Mike Hawes put it bluntly: “If operators have to wait up to 15 years just to be able to plug them into their depots, there is no case for investment.” Some operators are being quoted £5 million or more per site just for the connection, before a single charger is installed.

This is not only a UK problem. In the Netherlands, over 14,000 companies are on waiting lists for electricity connections, and nearly two-thirds of Dutch logistics properties sit in areas with grid congestion. In Germany, grid connections for new chargers can take up to 24 months. Transport and Environment found that in every country they analysed, grid extension plans underestimate the future demand for truck charging at depots.

Creative solutions are filling the gap

The most innovative operators are not waiting for the grid – they are finding ways around it.

Smart charging and load management are delivering immediate results. At UPS’s Kentish Town depot in London, an active network management system with on-site battery storage allowed the company to scale from 65 to 170 electric trucks using half the grid connection capacity originally specified. AI-powered charging platforms are cutting energy bills by up to 55% and peak demand by 50% at depots across Europe.

Battery energy storage is emerging as the critical bridge technology. At Tritax’s Symmetry Park in Biggleswade, a 2 MW microgrid incorporating battery storage, combined heat and power and rooftop solar delivers energy cost savings while operating independently of grid constraints. UK warehouse rooftops alone have capacity for up to 15 GW of new solar power.

Shared charging hubs are tackling the problem from a different angle. Fleete opened the UK’s largest dedicated commercial EV charging hub at the Port of Tilbury, a 5 MW facility with 16 ultra-rapid chargers serving multiple operators. This removes the need for every operator to build their own depot infrastructure and navigate their own grid connection. In Scotland, the SCALE project is piloting a community-owned shared charging network for freight, designed to make infrastructure accessible to operators of all sizes, not just the largest fleets.

The two-tier property market is already forming

Perhaps the most underappreciated dimension of this challenge is what it means for logistics real estate. JLL’s February 2026 report found that 90% of industrial and logistics companies experienced energy disruption in the past year, and the same proportion said they would pay a premium for sites with reliable energy infrastructure.

Major developers are responding. Panattoni Park Aylesford became the UK’s first logistics park with dedicated eHGV charging. Tritax Big Box REIT launched a “Power First” strategy. SEGRO is rolling out EV charging across its European portfolio. But for older logistics parks without adequate power supply, CBRE has warned that upgrading legacy facilities is often economically unviable.

Grid capacity is becoming as important as location when choosing logistics sites. A facility with insufficient power could become a stranded asset within the life of a standardlease.

Key takeaways for supply chain leaders

• Start with an energy audit, not a vehicle order. Before committing to electric trucks, understand your depot’s current power supply, what you will need, and what it would take to bridge the gap. The grid connection timeline will drive your transition plan more than any vehicle delivery schedule.
  
• Explore interim solutions now. On-site solar, battery storageand smart charging can significantly reduce your dependence on grid upgrades. These are not temporary fixes butare becoming permanent features of modern logistics infrastructure.
  
• Factor power into property decisions. Whether you are renewing a lease or planning a new build, grid capacity should sit alongside location, rent and specification on the evaluation checklist.
  
• Collaborate rather than go it alone. Shared charging hubs and industry consortia reduce the capital burden and avoid duplication. The operators making the fastest progress are working with energy partners, developers and even competitors to pool infrastructure investment.
  
• Engage with the policy conversation. The UK government’s HGV zero-emission vehicle mandate consultation closes in March 2026. This is the moment to make your operational reality heard.

Beyond the hype: final reflections

I have always believed that the best supply chain leaders are the ones who look beyond the headlines and focus on what is actually happening on the ground. And what is happening on the ground with fleet electrification is a story of two speeds.

The vehicle manufacturers have done their job. The trucks are here, they work and the economics are increasingly compelling. But the infrastructure that connects those vehicles to the energy they need is years behind where it should be.

In my conversations with logistics leaders across Europe, this is becoming one of the most pressing operational challenges I hear about. Not because people do not want to decarbonise, but because the practical barriers are far more complex than the sustainability reports would have you believe.

The operators making real progress share a common trait: they are not waiting for the perfect solution. They are starting with what is possible today, whether that is smart charging, on-site solar, battery storage or shared hubs, and building from there. They are treating energy infrastructure as a core part of their supply chain strategy, not an afterthought.

The first question for your fleet transition is no longer “which truck should we buy?” It is “can we get the power to charge it?”

If any of this resonates, whether you are stuck in a grid connection queue, unsure how to phase your fleet transition or trying to work out what your depot infrastructure needs to look like in three to five years, these are exactly the kinds of operational challenges I work on with supply chain and logistics businesses across Europe. Sometimes the biggest value is simply having someone from outside the business help you cut through the noise and build a practical plan.

If you would like to talk through where you are and where you need to get to, send me a message here on LinkedIn and let’s arrange a call.

One discussion in particular stood out at the 3PL forum in July.

Maddy Jones of Associated British Foods delivered an eye-opening talk on the art of securing spots on tender lists – a topic that struck a chord with many in the room, me included.

Inspired by her insights and blending them with my own experiences in the industry, I’ve realised that in the competitive supply chain world, landing on these coveted lists can genuinely be the difference between exponential growth and stagnation for third-party logistics (3PL) providers. Price is always important and critical in a demand and supply driven environment. But there’s also more.

It’s not just about being good at what you do anymore; it’s about mastering the nuanced art of positioning your 3PL business to be challenging to ignore. This article, born from the fusion of Maddy’s wisdom and my industry observations, offers some strategies I’ve seen work to help your 3PL rise above the noise and significantly boost your chances of being invited to tender and becoming the preferred choice.

Maximising your chances of being invited to tender

1. Craft a compelling value proposition

The cornerstone of any successful tender application is a razor-sharp value proposition that nails your story and critically answers the questions ‘why you?’ and ‘why now?’. Your potential clients need to grasp, within seconds, what makes your 3PL uniquely qualified to meet their needs. Consider the following when articulating your value proposition:

• Specificity is key – Instead of saying, “We offer innovative logistics solutions,” try “Our AI-driven route optimisation has reduced delivery times by 30% for e-commerce clients.”

• Quantify your impact – Use concrete metrics to demonstrate your effectiveness. For example, “We’ve helped our pharmaceutical clients achieve 99.9% on-time delivery rates, reducing product spoilage by 15%.”

• Address pain points – Show that you understand the specific challenges in your client’s industry and how your solutions directly address them.

2. Master the art of the executive summary

Time is the most precious commodity of all. This insight, brilliantly articulated by Maddy Jones of Associated British Foods at the recent SCALA 3PL Best Practice Forum, really hit home and is perhaps obvious?

As busy professionals, we’re all fighting the clock; nowhere is this more apparent than in the tender process. Maddy’s sage advice? Brevity is not just preferred—it’s crucial. With inboxes overflowing and attention spans shrinking, your ability to concisely communicate your 3PL’s value proposition can make or break your chances of landing on a coveted tender list.

With this in mind, here are some simple tips to communicate with brevity while still emphasising your critical value proposition. Remember, tenders are a marathon, not a sprint!

• Keep it brief – Aim for no more than 10 pages that pack a punch.
• Structure matters – Use clear headings, bullet points, and infographics to make the information easily digestible.
• Tell a story – Weave your key strengths into a narrative that resonates with the potential client’s needs and aspirations.
• Call to action – End with a clear next step, inviting further engagement.

3. Cultivate a robust industry network

The supply chain industry is one of the most relationship-driven industries I’ve come across; your network is most definitely your net worth. Building and nurturing strong industry relationships is crucial for getting on the right radar. Consider these strategies:

• Become a thought leader – Regularly contribute insightful content to industry publications and forums.
• Leverage LinkedIn – Share valuable content, engage with industry discussions, and connect with decision-makers.
• Attend and speak at events – Position yourself as an expert by presenting at conferences and trade shows.
• Join industry associations – Active participation in relevant associations can open doors to exclusive tender opportunities. An not just for the logistics industry – join the associations of your target customers.

Differentiating Your 3PL Business

1. Elevate customer service to an art form

Like no other, the supply chain industry is where reliability is paramount; exceptional customer service can be your secret weapon. Here’s how to showcase your commitment to service excellence:

• Implement a customer feedback loop – Regularly collect and act on client feedback, demonstrating your commitment to continuous improvement.
• Offer 24/7 support – In a global supply chain, issues don’t stick to office hours. Show your readiness to solve problems around the clock.
• Personalise your approach – Tailor your services to each client’s unique needs, proving that you’re not just another vendor, but a true partner in their success.

2. Showcase industry-specific expertise

Specialisation can set you apart in a crowded market. If your 3PL has deep expertise in particular sectors, make this the cornerstone of your pitch:

• Develop Industry-Specific Case Studies: Create detailed case studies that demonstrate your understanding of sector-specific challenges and how you’ve overcome them.
• Highlight specialised equipment or processes: If you’ve invested in industry-specific technology or processes, make sure potential clients know about it.
• Speak the language: Use industry-specific terminology to demonstrate your insider knowledge and build credibility.

3. Lead the charge in sustainability and innovation

Sustainability and environmental credentials aren’t just nice to have—they’re a necessity. Simultaneously, innovation is the lifeblood of progress in the supply chain industry. Here’s how to position your 3PL at the forefront:

Sustainability:

• Set clear goals – Publicise your sustainability targets and your progress towards them.
• Invest in green technology – Showcase your use of electric vehicles, solar-powered warehouses, or AI-optimised routes that reduce carbon emissions.
• Partner with eco-friendly suppliers – Demonstrate your commitment to sustainability throughout your supply chain.

Innovation:

• Embrace cutting-edge tech – Highlight your use of blockchain for transparency, IoT for real-time tracking, or AI for predictive analytics.
• Develop proprietary solutions – If you’ve created unique software or processes, make these a key part of your pitch.
• Foster a culture of innovation: Share how you encourage and implement new ideas from your team, showing that innovation is in your DNA.

Practical tips for submitting winning tenders

1. Craft an irresistible executive summary

Your executive summary should be a standalone masterpiece that leaves the reader eager to learn more. Here’s how to make it shine:

• Start with a bang – Open with your most impressive statistic or achievement.
• Focus on outcomes – Emphasise the results you’ve delivered for similar clients.
• Tailor to the client – Show that you understand their specific needs and how you’re uniquely positioned to meet them.

2. Showcase tangible success stories

Decision-makers crave proof of your capabilities. Use case studies to bring your successes to life:

• Before and after – Clearly illustrate the improvements you’ve made for clients.
• Use visual aids – Graphs and charts can make your achievements more impactful.
• Include client testimonials – Let your satisfied customers speak for you.

3. Keep your submission lean and focused

In the initial stages, quality trumps quantity. Aim for a concise, powerful submission:

• Stick to no more than 10 pages: Force yourself to prioritise your most compelling points.
• Use a clear structure – Make it easy for readers to find key information quickly.
• Proofread meticulously – A polished submission reflects your attention to detail.

4. Follow Up with Finesse

A well-timed, professional follow-up can set you apart:

• Timing is everything – Wait about a week before following up.
• Add value – Use this opportunity to provide additional relevant information or insights.
• Be Persistent, not pushy – Express your continued interest and availability for further discussions.

Beyond the hype: Final reflections

Getting on tender lists requires a strategic approach that blends clear communication, relationship-building, and differentiation.

By focusing on your unique strengths, presenting them compellingly, and leveraging strong industry relationships, your 3PL can significantly boost its chances of being invited to tender.

Remember, the key is not just to be good but to be memorable. Your goal is to make decision-makers think, “We can’t afford not to have this 3PL on our tender list.”

The integration of AI in the Supply Chain in recent years has revolutionised the industry, enhanced efficiency, and optimised operations across the board. However, while technology is a critical enabler, as a Supply Chain Consultant working with some of the world’s largest brands, I believe the human element remains irreplaceable.

This was a hot topic at the recent SCALA Discussion Forum that I hosted with speakers highlighting the importance of managing change effectively and engaging employees as AI is integrated into Supply Chain operations.

The Supply Chain sector still heavily relies on strong interpersonal relationships and human skills such as curiosity, collaboration, and creativity – all critical traits that massively enhance a business’s capability.

In edition one of my Linkedin newsletter, “Supply Chain: Beyond the Hype”, I explored the impact of AI on the Supply Chain. In this latest edition of my newsletter, I’ll explore the interplay between AI and human talent, emphasising the importance of fostering human skills in a technology-driven Supply Chain environment.

THE CHALLENGE: Attracting and retaining talent in a tech-driven environment

Current talent shortages

The Supply Chain industry is experiencing a significant talent shortage affecting both blue-collar and white-collar roles. Good-quality warehouse workers, truck drivers, demand planners, and logistics coordinators are all in high demand, yet the industry seems to struggle to attract and retain sufficient numbers.

Factors contributing to the talent gap

Several factors contribute to this talent gap. A primary issue is the perception of the Supply Chain industry as low-tech and labour-intensive, which can deter potential candidates. Additionally, competitive labour markets mean that other sectors, particularly tech, offer more attractive salaries and benefits, making it harder for the Supply Chain industry to compete.

THE IMPACT: How automation and AI are transforming roles

Automation in blue-collar roles

Automation technologies, such as robotics and autonomous vehicles, have been revolutionising blue-collar roles within the Supply Chain for some time. These advancements increase efficiency and reduce operational costs, but they also raise concerns about job displacement and the future of traditional labour roles.

AI in desk-based roles

AI and machine learning are becoming indispensable in desk-based roles. These technologies can analyse vast datasets, predict demand patterns, and optimise inventory levels, enabling Supply Chain professionals to make more accurate and timely decisions. However, this shift requires a new set of skills focused on data analysis and strategic thinking.

THE CRITICAL HUMAN FACTOR: Why human skills matter more than ever

Irreplaceable human skills

While AI can process data and perform repetitive tasks, it cannot replicate human intuition, empathy, or the ability to build relationships. These ‘soft skills’ are crucial for strategic decision-making, managing supplier and customer relationships, and driving innovation within the Supply Chain.

Real-world examples

For instance, negotiating a complex contract with a supplier or resolving a logistics crisis requires more than just data; it requires the human touch. The ability to understand context, read emotional cues, and navigate nuanced conversations are skills that technology cannot replicate.

The Human Edge

I thoroughly recommend you read “The Human Edge” by Greg Orme. In his book, he explores how humans can stay relevant in the age of AI. He suggests that success is about harnessing unique human qualities such as creativity, empathy and curiosity – all traits that AI struggles with but humans can leverage to stand out.

THE SOLUTION: Balancing technology with human expertise

Integrating AI thoughtfully

The key to leveraging AI in the Supply Chain is to use it as a tool that enhances human capabilities rather than replaces them. AI should be seen as a partner that helps supply chain professionals make better decisions, not as a replacement for human judgment.

Fostering human skills

To achieve this balance, organisations need to invest in training programs that enhance both technical and soft skills. Employees should be equipped to use AI tools and understand the insights they provide and how to apply them strategically.

Ethical AI use

It’s also essential to address ethical considerations, such as data privacy and potential biases in AI algorithms. Ensuring transparency and accountability in AI use is crucial for maintaining trust and integrity within the industry.

BUILDING TRUST: Managing change and engaging employees

Transparent communication

Successful AI implementation depends on building trust among employees. Transparent communication about AI’s role and benefits is essential. Employees need to understand how AI will impact their roles and the advantages it brings to the organisation.

Involving employees

Involving employees in the AI implementation process helps ensure they feel valued and part of the transition. This can be achieved through regular updates, feedback sessions, and decision-making processes related to AI integration.

Effective change management

Change management strategies are critical. This includes offering training programs, continuous engagement, and providing support as employees adapt to new technologies. A well-managed change process helps mitigate resistance and fosters a culture of innovation and collaboration.

ENHANCING WORK ENVIRONMENTS: Improving facilities for better retention

The current state of facilities

The quality of facilities in warehouses and truck stops plays a significant role in worker satisfaction and retention. Unfortunately, many facilities are outdated, with inadequate amenities and safety concerns, leading to low morale and high turnover rates.

Necessary improvements

The Supply Chain industry must invest in upgrading facilities to attract and retain talent. This includes enhancing safety measures, providing better amenities, and creating a more comfortable and supportive working environment. Improved facilities can significantly boost worker morale, increase productivity, and reduce turnover rates.

THE OUTCOME: Creating a sustainable and attractive Supply Chain sector

Benefits of a balanced approach

A balanced approach that leverages both technology and human talent leads to a more resilient and innovative Supply Chain. By integrating AI thoughtfully and fostering human skills, organisations can enhance efficiency, improve decision-making, and drive growth.

Long-term success

Investing in talent development and improving facilities not only addresses current challenges but also ensures long-term sustainability. A focus on both technology and human capabilities creates a Supply Chain sector that is attractive to new talent and prepared for future challenges.

WHAT NEXT?: Investing in people for the future of Supply Chain

Industry stakeholder responsibilities

Industry stakeholders must recognise the value of human skills and invest in their development. This includes providing training programs, improving working conditions, and promoting a collaborative approach to technology adoption.

Promoting a dual approach

By embracing a dual approach that leverages both AI and human talent, the Supply Chain industry can overcome current challenges and build a resilient, future-ready workforce. This balanced strategy ensures the sector remains competitive, innovative, and sustainable.

SUMMING UP: The future of Supply Chain – A harmonious blend of AI and human talent

The future of the Supply Chain industry lies in the harmonious blend of AI and human skills. While technology can significantly enhance operational efficiency and decision-making, the human element remains irreplaceable. By investing in talent development, improving facilities, and fostering a culture of collaboration and innovation, the Supply Chain industry can navigate the complexities of modern operations and ensure sustainable growth.

Chris’s final thoughts

The Supply Chain industry must focus on creating a balanced ecosystem where technology and human skills complement each other. This approach will address current challenges and pave the way for a more dynamic and resilient future. Industry leaders should commit to this vision, ensuring the Supply Chain remains a vital and thriving part of the global economy.

This article explores the six most common obstacles I see businesses face when adopting AI in supply chains in my daily interactions, and provides some strategies and insights to help overcome them.

1. Data Quality and Availability

The challenge: Ensuring high-quality data is a significant hurdle in AI implementation. AI systems require vast amounts of accurate data to function effectively, but many supply chains struggle with data silos and inconsistent data formats.

Solution:

• Data Management Practices – Adopting robust data management practices, such as regular data audits and standardising data formats, can improve data quality.
• AI Data Cleaning Tools – Leveraging AI itself to clean and standardise data can help ensure that the input data is reliable and useful

2. Integration with Existing Systems

The challenge: Many legacy systems need to be designed to integrate with modern AI technologies, leading to compatibility issues and disruptions in system functionality.

Solution:

• Middleware Solutions – Employing middleware software can act as a bridge between AI applications and existing systems, facilitating smoother integration.
• Phased Implementation – Implementing AI in phases, starting with pilot projects, can help identify and address compatibility issues early on.

3. High Implementation Costs

The challenge: Implementing AI can have high initial costs, including expenses related to software, hardware, and skilled personnel. Additionally, retraining AI models to adapt to changing business environments incurs ongoing costs.

Solution:

• Cost-Benefit Analysis – Conducting a thorough cost-benefit analysis to ensure the potential savings and efficiencies justify the initial investment.
• Automated Monitoring Systems – Implementing automated systems to monitor AI performance and trigger retraining only when necessary can help manage ongoing costs.

4. Resistance to Change

The challenge: Organisational resistance to adopting new technologies can stem from a lack of understanding, fear of job displacement, or discomfort with changing workflows.

Solution:

• Transparent Communication – Openly communicating the benefits of AI and how it will enhance, rather than replace, human roles can build trust.
• Employee Involvement and Training – Involving employees in the AI implementation process and providing training can foster a sense of ownership and reduce resistance.

5. Data Security and Privacy

The challenge: Integrating AI often involves substantial data transfer and system access, raising concerns about data security and privacy.

Solution:

• Encryption and Secure Access Controls – Implementing robust encryption techniques and secure access controls can protect data during AI integration.
• Regular Audits – Conducting regular system audits to identify and address security vulnerabilities can help maintain data integrity and compliance with regulations.

6. Lack of an AI Strategy

The challenge: Some organisations lack a clear AI strategy, which hinders their ability to implement AI solutions effectively. This challenge includes a lack of understanding of AI’s potential benefits, insufficient alignment with business goals, and the absence of a roadmap for AI adoption.

Solution:

Develop a Clear AI Strategy:

• Identify Business Goals – Start by aligning AI initiatives with the overall business objectives. Understanding how AI can support specific business goals is crucial for gaining stakeholder buy-in and setting clear priorities.
• Conduct an AI Readiness Assessment – Evaluate the current state of AI readiness within the organisation. This includes assessing the availability of data, existing technological infrastructure, and employee skill levels (McKinsey & Company).

Create a Roadmap for AI Adoption:

• Phased Implementation – Develop a phased roadmap for AI implementation, starting with pilot projects to demonstrate value and build trust. Gradually scale up successful pilots to broader applications within the organisation.
• Integration with Existing Systems – Plan for the integration of AI solutions with existing business systems and processes. This ensures seamless adoption and minimises disruptions (nexocode) (BCG Global).

Invest in Skills and Training:

• Employee Training Programs – Invest in training programs to upskill employees on AI technologies and their applications. This can include workshops, online courses, and collaboration with AI experts and consultants.
• Cross-Functional Teams – Form cross-functional teams that include members from IT, data science, and business units. This fosters collaboration and ensures that AI projects are aligned with business needs and technological capabilities (Intellias).

Leverage External Expertise:

• Partnerships with AI Experts – Collaborate with AI experts, consultants, or technology partners who can provide the necessary expertise and support for AI strategy development and implementation.
• Benchmarking and Best Practices – Learn from industry leaders and benchmark against best practices in AI adoption. This helps in understanding common pitfalls and effective strategies for successful AI implementation (BCG Global) (RTS Labs).

Where has AI been implemented effectively in the supply chain?

There are many instances globally of where technologies like AI have been successfully implemented in the supply chain, helping organisations overcome many of the barriers I’ve discussed in this article.

Here are three recent examples of where AI has been successfully deployed:

1. Unilever

Unilever has integrated AI across various facets of its supply chain to enhance sustainability, efficiency, and consumer responsiveness. The company collaborates with partners like Google Cloud to create a comprehensive view of its supply chain, driving innovations such as AI-powered image capture in freezers for better inventory management and satellite imaging for improved traceability and environmental monitoring.

The results have been impressive, including increased retail sales, improved energy efficiency in ice cream cabinets, and substantial reductions in emissions during surfactant production.

2. Walmart

Walmart’s comprehensive AI strategy covers procurement, storage, distribution, and customer interaction. They have used AI to negotiate contracts, forecast demand, and manage inventory. Automation technologies have been implemented to enhance storage, retrieval, and packing processes.

Walmart’s initiatives have led to significant savings, including a 1.5% cost reduction from supplier negotiations and a 20% improvement in unit cost averages. Additionally, AI-powered chatbots have enhanced customer care, contributing to a more efficient and customer-centric supply chain..

3. Express Fulfilment (RTS Labs)

RTS Labs helped Express Fulfillments, an e-commerce fulfilment provider, optimise last-mile delivery using AI. By implementing predictive analytics and route optimisation algorithms, they developed a real-time scheduling system that reduced transportation costs by 25% and improved on-time delivery rates by 40%.

AI-powered chatbots also streamlined order processing, cutting processing times by 50% and significantly enhancing operational efficiency.

Looking to the future

Looking to the future, the role of AI in supply chains is poised to expand even further, driven by emerging technologies and innovative applications. One of the most promising trends I see is the integration of digital twins, which create virtual replicas of physical supply chains. These digital models allow for real-time monitoring, predictive analysis, and scenario planning, enabling companies to optimise their operations with unprecedented accuracy and agility.

5G technology is another game-changer for organisations, offering faster data transmission and more reliable connectivity. This will enhance the capabilities of AI-powered supply chain systems, allowing for more efficient communication between devices and systems. With 5G, supply chains can achieve real-time data processing and decision-making, leading to more responsive and resilient operations.

Additionally, advancements in blockchain technology are set to revolutionize supply chain transparency and security. When combined with AI, blockchain can provide secure and immutable records of transactions and product movements, enhancing traceability and reducing the risk of fraud.

The convergence of AI with these emerging technologies will create smarter, more adaptive supply chains that can better anticipate and respond to market changes. As companies continue to invest in AI and integrate these advanced technologies, the future of supply chains will be marked by greater efficiency, sustainability, and innovation.

By staying ahead of these trends and continuously evolving their AI strategies, businesses can overcome current challenges and seize new opportunities for growth and competitive advantage in the dynamic landscape of global supply chains.

The journey towards fully AI-enabled supply chains is just beginning, and the possibilities are vast and exciting.

What next?

If you’ve enjoyed this article, let me know in the comments.

If you have an opinion on any of the points raised in this article, let me know in the comments.

If you have supply chain challenges I can help with, connect with me on LinkedIn and book a call to discuss how I can help.