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Labor Challenges in the Modern Supply Chain

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Labor challenges in the modern supply chain

Despite the growth of automation in the supply chain, manufacturers and distributors still face numerous labor challenges driven by increased demand, rapid fulfillment cycles, and SKU proliferation. Many businesses are building inventory levels to avoid tariffs, creating additional labor needs for storage and handling. As peak season demand spikes, warehouses struggle to maintain a full labor pool. Turnover rates that often exceed 40-50% annually make it even harder to retain skilled labor.

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