Outsourcing in Logistics:
Bridging the Labor Gap for Success

The U.S. labor market is still feeling the pinch in 2024, as the lingering effects of the COVID-19 pandemic keep worker availability in short supply. In the face of talent shortages, outsourcing in logistics and other industries is increasingly embraced as a strategic solution to enable operational efficiency. In this blog, we look at the reality of the talent shortages in the U.S. and how outsourcing can bridge the skills gap.  

The widening talent gap 

• In February 2024, with roughly 5.7 million unemployed individuals the unemployment rate dipped to 3.8% in February 2024, 
• With 9.5 million job openings in the U.S. in Feb 2024, there are more job openings than talent pool onshore.  
• 76% of employers in the Transport, Logistics and Automotive industry report difficulty in filling roles, slightly higher than the 75% cross-industry average. 
•  Administrative roles within the financial, professional, and business services sectors continue to face significant challenges in recruiting qualified workers. 

 Why workers are staying sidelined 

• Despite a decrease in unemployment figures, several factors are contributing to the ongoing worker shortage: 
• Aging Population: According to the National Bureau of Economic Research, the aging of the U.S. population is expected to slow economic growth and exacerbate labor market pressures by reducing the pool of available workers and increasing the demand for skilled labor. 
• Shifting priorities: Following the work from home shift during the pandemic the significance of work-life balance and childcare has come to the forefront. Industries are adapting to provide more flexible work hours, hybrid working and alternative schedules to accommodate the needs of working parents.  

 The high cost of in-house operations 

In today's competitive market, attracting and keeping talent is expensive. 

• The average cost per hire stays high, nearing $5,000 in 2024. 
• Businesses continue to face back-office staffing shortages, with studies showing nearly 60% of companies experiencing difficulties and nearly half experiencing increased turnover . 

Outsourcing as a strategic solution for logistics 

To bridge the skills gap in the logistics sector, many companies are increasingly turning to outsourcing. This approach not only fills immediate staffing needs but also integrates advanced technological solutions and global expertise into daily operations. The logistics industry, facing intense pressure to streamline operations and enhance service delivery, finds significant value in outsourcing key functions such as document management, order processing, finance and accounting, and HR support. 

Outsourcing back-office tasks like document management, order processing, data entry, finance and accounting, HR support as well as other ancillary services can offer significant advantages: 

 Reduced Costs: By outsourcing, companies can avoid the expenses associated with recruitment, training, and retention. Providers offer cost-effective models that utilize both onshore and offshore resources, optimizing budget allocation. 

• Access to Global Talent: Outsourcing opens the door to a global pool of specialists, particularly in areas where in-demand skills are scarce domestically. 

• Scalability: Companies can flexibly scale their workforce according to business fluctuations, which is especially valuable in the dynamic logistics sector. 

• Digital Transformation: Many outsourcing partners bring advanced technologies into the fold, including Robotic Process Automation (RPA) and cloud solutions, enhancing efficiency and modernizing processes. 

• Impact Sourcing: Partnering with outsourcing providers can also help companies meet their Environmental, Social, and Governance (ESG) and Corporate Social Responsibility (CSR) objectives by generating employment opportunities in disadvantaged communities. 

• Focus on Core Business: Outsourcing allows firms to free up internal resources, enabling them to focus more on their core competencies and strategic initiatives. 

 Explore more about these services on ADEC Solutions USA's services page. 

 Bridging the gap with impact sourcing 

Using a blend of onshore and offshore resources has become vital for addressing the talent shortage in the U.S. By engaging with outsourcing partners that practice impact sourcing, companies can tap into top-tier talent. Impact sourcing is an approach that brings work opportunities to marginalized communities both onshore and offshore.  Because it makes a meaningful difference for individuals and communities, impact souring can contribute to the company's Environmental, Social, and Governance (ESG) goals and Corporate Social Responsibility (CSR) practices. 

 Companies that practice impact sourcing report a more engaged and committed workforce, with lower attrition and higher employee satisfaction, leading to sustainable growth and a positive global impact. At ADEC USA, our commitment to impact sourcing has been recognized, as we're listed among Impact Sourcing Specialists in the Impact Sourcing State of the Market Report 2023 by Everest Group. 

 Our experience with impact sourcing teams in Kenya has shown outstanding results, including: 

• A 99.5% achievement rate in service level agreements (SLAs) 
• A 99.4% accuracy rate 
• A monthly attrition rate of less than 2% 
• Reduced operational costs
  

By adopting impact sourcing, companies can achieve a balance between ethical practices and business efficiency, ultimately leading to sustainable growth and a positive global impact. 

Finding the right outsourcing partner 

To ensure success, choose a partner with the experience and ability to meet your specific needs. Consider factors like: 

• National presence and scalable solutions 
• Proven track record in your industry 
• Commitment to sustainability, impact sourcing, and ethical values 
• Regulatory compliance and accreditations 
• Client satisfaction 
• Industry awards and recognition 

By partnering with a reputable outsourcing provider, you can overcome the talent shortage, achieve business efficiency, and drive growth in today's competitive landscape. Here is how a leading Logistics company greatly boosted its revenue by outsourcing cash applications to ADEC USA, ensuring accurate realizations annually. 

With three decades of proven expertise, ADEC USA offers a comprehensive suite of business process outsourcing solutions, including Finance and Accounting, HR, Customer Care, and Document Management. As an integral part of a global network, ADEC USA has access to a vast array of specialists across six continents. Our award-winning services are renowned for effectively addressing business challenges and providing unmatched service to clients worldwide.  

Choose us as your strategic ally to access a wider talent pool needed to enhance business efficiency, elevate customer satisfaction, and thrive in the competitive market.