Are Your Supply Chain Teams Stretched Too Thin?

Supply chain teams are heading into 2026 under continued workforce pressure. Although employee turnover has become more stable for some organisations, the challenges affecting workloads, retention and access to experienced talent have not disappeared.

Employers are approaching recruitment cautiously, but the market remains active. Hiring is being driven by several factors at once, including employee replacement, business growth, organisational change and seasonal demand. For New Zealand businesses, this means workforce planning needs to remain closely connected to operational requirements.

Demand remains strongest across demand and supply planning, procurement, warehousing, operations and production. These functions have a direct impact on delivery performance, customer service and business continuity. When an important role remains vacant, pressure can quickly spread across the wider team.

“Stability is improving, but the pressure on teams has not disappeared.”

On a recent New Zealand Supply Chain Market Update, host Mark Green, Western Sydney Branch Manager, explored the recruitment outlook for supply chain employers heading into 2026.

One of the clearest trends is that replacement hiring remains a major source of recruitment activity. Businesses need to fill essential positions when experienced employees leave, but many are also managing tighter budgets and carefully reviewing every new hire. This creates a difficult balance. Controlling costs is important, but leaving a critical role vacant for too long can lead to delays, service issues and increased pressure on existing employees.

Business expansion is also contributing to hiring demand. When organisations grow their customer base, open new locations, launch products or increase production, their supply chain capability needs to grow with them. Employers may require additional planners, procurement professionals, warehouse leaders and operational staff to manage the added workload.

The challenge is making these hiring decisions early enough. Waiting until teams are already overloaded can make it more difficult to recruit effectively and may place further strain on existing employees. A proactive workforce plan allows businesses to identify future gaps before they begin affecting performance.

Organisational transformation is creating another layer of recruitment demand. Changes to systems, processes, technology and operating models can require skills that may not already exist within the business. Employers may need professionals who can manage change, improve processes or help teams adopt new planning and reporting tools.

Candidates who combine practical supply chain experience with strong digital capability may be particularly valuable. As businesses continue to invest in automation and efficiency, employees who can work confidently with data, systems and technology will be well positioned.

Seasonal demand is also shaping workforce decisions. Peak periods can place significant pressure on warehousing, transport, production and customer delivery functions. Temporary and contract employees can give organisations the flexibility to respond without permanently increasing headcount.

However, temporary recruitment still requires planning. Waiting until demand has already increased can limit access to experienced workers, particularly when several employers are competing for similar skills. Businesses that identify their peak workforce requirements early are more likely to secure the right people.

Under-resourcing remains one of the most significant concerns across the sector. Many supply chain teams are carrying workloads that are difficult to maintain over the long term. Employees may be covering vacant positions, taking on extra responsibilities or working extended hours to maintain service levels.

While this can keep operations moving temporarily, it can also increase fatigue, reduce engagement and contribute to further turnover. The longer a team remains under-resourced, the greater the risk that experienced employees will begin looking elsewhere.

This is why retention needs to be treated as seriously as recruitment. Hiring a new employee will not solve workforce pressure if experienced people continue to leave. Employers need to understand what their employees value and where meaningful improvements can be made.

Career development is an important retention tool. Employees are more likely to stay when they can see a clear future within the organisation. This may involve professional training, mentoring, project opportunities, increased responsibility or support to build specialist skills.

Development does not always need to lead immediately to a promotion. Giving employees opportunities to learn, contribute and expand their capabilities can improve engagement while strengthening the organisation’s internal talent pipeline.

Flexibility and practical financial benefits can also support retention. Depending on the role, this may include flexible start and finish times, hybrid working arrangements, overtime payments, travel allowances or other incentives.

Not every benefit will suit every workplace, particularly in operational environments where employees need to be on site. The most effective approach is to understand what employees genuinely value and design benefits that reflect the realities of their work.

The supply chain recruitment market in 2026 is likely to remain cautious but active. Employers may continue to be selective about permanent headcount, but they will still need to replace critical employees, support business growth and respond to operational change.

Businesses that plan ahead, move efficiently and clearly communicate what they can offer employees will be better positioned to secure experienced talent. Just as importantly, employers that invest in the people they already have will be more likely to build stable, capable and resilient supply chain teams.

How can you reduce the pressure on your supply chain team?

• Review critical roles and identify where a vacancy would create the greatest operational risk.

• Begin recruitment planning before peak periods or major business changes increase demand.

• Monitor workloads regularly and respond before under-resourcing leads to burnout or resignations.

• Offer clear development opportunities that help experienced employees see a future within the organisation.

• Use temporary and contract employees strategically to cover leave, seasonal demand and short-term skill gaps.

• Tailor flexibility, allowances and incentives to the practical needs of your supply chain workforce.