Tennessee is a nationally recognized hub for the supply chain and logistics industry. Home to the busiest cargo airport in North America, the state has more than 15,000 distribution and logistics establishments employing more than 249,000 Tennesseans, making our home the top ranked state in the country for employment concentration and job growth in the industry. The business-friendly atmosphere has led to major companies like FedEx, Under Armour, Nike, Lowe’s, Amazon and AutoZone calling the Volunteer State home.

The pandemic highlighted and exacerbated faults across a large portion of our global economy, but none more so than the faults it exposed in our global supply chain. In many ways, the pandemic broke the supply chain.

Every business relies on a supply chain to some degree. Supply chain, logistics and distribution organizations have a reach that extends far beyond manufacturing or trade industries. Everything from a standard office job to a restaurant’s kitchen manager rely on a functioning, reliable and organized supply chain to operate day after day.

Supply chain operations are becoming increasingly complex, as businesses seek to meet the demands of customers for speed, efficiency and sustainability. By adopting new technologies and approaches, businesses can improve the efficiency and effectiveness of their supply chains and gain a competitive advantage.

The 21^st century supply chain is characterized by a number of trends, including:

• Globalization: The increasing interconnectedness of the global economy has led to supply chains that span multiple countries and continents.
• Digitalization: The use of technology to improve visibility and efficiency across the supply chain is becoming increasingly important.
• Sustainability: There is a growing focus on sustainability in supply chains, as businesses seek to reduce their environmental impact.
• Transparency: Customers are demanding more transparency from businesses about their supply chains in terms of where their products come from and how they are made.
• Resilience: Businesses are increasingly focused on building resilient supply chains that can withstand disruptions such as natural disasters or pandemics.

These trends are driving the need for new approaches to supply chain management. Businesses need to be able to effectively manage complex, global supply chains, while also meeting the demands of customers for sustainability, transparency and resilience.

But despite the investment and growth in Tennessee, labor gaps continue to grow across the industry. The global labor market is facing a shortage of skilled workers, which is putting a strain on supply chains. In a 2022 report, McKinsey found that the U.S. logistics and supply chain sector is facing a shortage of 1.8 million workers, and that this shortage is expected to grow to 2.4 million by 2030.

This is due to several factors, including the aging workforce, the decline of manufacturing jobs and the rise of automation. The consensus is clear: the supply chain and operations sector is facing a major labor shortage, and this shortage is likely to get worse in the years to come.

The labor shortage in the supply chain and operations sector is a major challenge for businesses, and it is likely to have a significant impact on the global economy. As businesses have struggled to fill positions, training and upskilling workers has come into a sharper focus.

Western Governors University (WGU) recently launched its Bachelor of Science in Supply Chain and Operations Management degree  as a response to the growing need. The degree program is already thriving in Tennessee and throughout the Southeast, as it’s designed specifically with employers in mind, to help students develop the skills and knowledge they need to succeed in this growing field. Online, nonprofit and accredited WGU recently celebrated its 10-year partnership with Tennessee and has more than 10,680 graduates in the state.

The good news for workers in this field is that the demand for their skills and knowledge is strong, and wages are expected to grow faster than the national average. As businesses in Tennessee and across the globe look for ways to make their supply chains more efficient, resilient and sustainable, the need for skilled workers will continue to grow as well.

The pandemic highlighted the shortcomings of our global supply chain network. As a major industry in the Volunteer State, it’s vital we continue to train, educate and prepare the next generation of supply chain and logistics professionals for the challenges that lie ahead.