13 mil­lion jobs for lo­gis­tics by 2022?

Capt. Ra­manu­jam, CEO, LSSC and Neeti Sharma, Se­nior Vice Pres­i­dent, TeamLease Ser­vices, opine on a very prom­i­nent and cru­cial topic of en­gag­ing more pro­fes­sion­als, who are skilled, for the lo­gis­tics in­dus­try.

Cargo Talk - - Guestcolumn -

The lo­gis­tics sec­tor in In­dia has wit­nessed very rapid changes and evolve­ment be­tween in­fra­struc­ture, the ser­vice in­dus­try and of course tech­nol­ogy. Man­u­fac­tur­ing and lo­gis­tics have a hand in glove re­la­tion­ship and thus lo­gis­tics ac­tiv­ity cuts across sec­tors and in­dus­tries. Most lo­gis­tics com­pa­nies are seek­ing so­lu­tions that would en­sure quicker turn around de­liv­ery time, lower down­time and mak­ing the en­tire sup­ply chain process a cost ef­fec­tive one thereby gain­ing happy cus­tomers. Pro­jec­tion of growth The lo­gis­tics in­dus­try is pro­jected to grow at an an­nual rate of 15-20 per cent by 2022. This will fur­ther be in­creased due to reg­u­la­tory changes such as GST roll out, Amend­ment to Road­way bill, Ware­hous­ing Bill, Dig­i­tal/Cash­less trans­ac­tions etc. Other fac­tors such as Growth in con­sump­tion, For­eign in­vest­ments, In­no­va­tion, In­fra­struc­ture, Mar­ket Con­sol­i­da­tion, New Tech­nol­ogy and IT are in­stru­men­tal fur­ther­ing the growth of the in­dus­try. The above should also en­able re­duc­ing the In­dian lo­gis­tics cost. Cur­rently, these costs are about 1314 per cent of GDP , al­most dou­ble than the av­er­age of 7-8 per cent of the de­vel­oped coun­tries.

Cur­rently, the in­dus­try em­ploys over 20 mil­lion peo­ple within the sec­tor and it is pro­jected that the sec­tor will re­quire over 13.65 mil­lion peo­ple ad­di­tion­ally to cater to the 31 mil­lion job re­quire­ment within the sec­tor. Job roles

While the lo­gis­tics sec­tor is a very vast sec­tor and runs across most in­dus­tries, few key ar­eas of the sec­tor that re­quire skilled man­power are :

Ware­hous­ing (Stor­age & Pack­ag­ing) Land Trans­porta­tion Courier & Ex­press Ser­vices

Port Ter­mi­nals/ ICD/ CFS

Ex­port Im­port Lo­gis­tics/ Freight For­ward­ing / Cus­toms Clear­ance Air Cargo Op­er­a­tions Cold Chain Lo­gis­tics so­lu­tions E-com­merce Marine Ser­vices, Ship­ping & In­land Wa­ter­ways

Sup­ply Chain

There is go­ing to be a steady re­quire­ment of skilled man­power within this sec­tor and these job de­mands can be bi­fur­cated in four large cat­e­gories :

Pure Play Lo­gis­tics Job Roles- such as Ware­hous­ing/ Courier/Port Ter­mi­nal &CFS/ ICD Op­er­a­tions/ Air Cargo Op­er­a­tions at Ter­mi­nals and Air Freight Sta­tions. De­mand for these job role re­quire­ments are by and large a steady num­ber and will in­crease de­pend on in­fra­struc­ture growth/ EXIM.

Lo­gis­tics Job Roles in sup­port of Man­u­fac­tur­ing & Ser­vices such as In Plant Lo­gis­tics / Line Feed­ers/ Sup­ply Chain As­sis­tants and Ex­ec­u­tives: The re­quire­ment for these job roles are de­pen­dent on GDP growth and con­sump­tion and is gen­er­ally quite vari­able and also sea­sonal.

Job roles re­lated with trans­porta­tion which would in­clude Marine / Avi­a­tion: Re­quire­ment for these job roles is a con­tin­u­ally grow­ing one with newer ve­hi­cles com­ing on roads each year and at­tri­tion in the work force.

Start-up com­pa­nies work­ing on in­no­va­tive cus­tomer friendly so­lu­tions as in e-com­merce are sig­nif­i­cant em­ploy­ers of man­power es­pe­cially for the ful­fil­ment cen­ters and last mile de­liv­ery: Many job roles as those in Courier, Driv­ing – both Heavy ve­hi­cles as well as Light ve­hi­cles, De­liv­ery, Pack­ing & Load­ing, Ware­house op­er­a­tors, Main­te­nance, Trans­porta­tion, Qual­ity con­trol, In­ven­tory Man­age­ment, Au­dits, Back Of­fice Op­er­a­tions such as in Global Ser­vice Cen­ters, Cus­tomer Re­la­tion­ships etc. are in much de­mand and need skilled man­power. Skilling In­dia There are var­i­ous ways a job seek­ers can be as­so­ci­ated with the in­dus­try. They have the op­tion to be di­rectly em­ployed by the com­pany, or be hired on con­tract, work with sub-con­trac­tors, as con­sul­tants, ca­sual / daily wage work­ers, de­ployed as ap­pren­tices or work as man­age­ment trainees.

Since the in­dus­try has been adopt­ing new tech­nol­ogy for bet­ter­ment of ser­vices, the in­dus­try ex­pects the job seek­ers to be skilled with Ad­vanced and Up­dated Tech­no­log­i­cal Skills, Driv­ing Skills, Bet­ter over­all un­der­stand­ing of in­dus­try with do­main knowl­edge and Multi-task­ing / Multi-Skilling Op­er­a­tions.

The in­dus­try needs over 13 mil­lion skilled em­ploy­ees across jobs over the next five years, i.e. we need to have a train­ing ca­pac­ity of over 12 mil­lion trainees by 2022, roughly trans­lat­ing to about 2.5 mil­lion an­nual train­ing ca­pac­ity na­tion­ally. The Lo­gis­tics Sec­tor Skills Coun­cil (LSSC), has a tough task of be­ing able to skill and cer­tify these 13 mil­lion youth be­fore they en­ter the job mar­ket. Says Capt. Ra­manu­jam , CEO of LSSC. “The lo­gis­tics sec­tor has not had the ben­e­fit of any for­mal train­ing thus far and all skill train­ing ini­tia­tives has been done in-house at the Com­pany premises as an ‘On Job Train­ing (OJT).”

Fur­ther since a size­able chunk of the In­dus­try is in the un­or­gan­ised sec­tor even this has es­caped many of the em­ploy­ees. Ob­vi­ously, this will re­sult in in­ef­fi­cien­cies and added cost. The Lo­gis­tics Sec­tor Skill Coun­cil cer­ti­fied train­ing is the only struc­tured train­ing avail­able for the sec­tor. The Min­istry of Skill De­vel­op­ment and En­trepreneur­ship has taken pi­o­neer­ing steps to ad­dress the sec­toral re­quire­ments by driv­ing the Sec­toral Skill Train­ing pro­grammes through the Flag­ship pro­grammes such as Prad­han Mantri Kaushal Kendras, Stand Alone Skill Train­ing Cen­ters, Recog­ni­tion of Prior Learn­ing Pro­grams, and the Na­tional Ap­pren­tice­ship Pro­mo­tion Scheme. RP Rudy, MSDE Min­is­ter has been per­son­ally in­ter­act­ing with the in­dus­try to set up stand-alone skill train­ing cen­ters and en­sure that skill trained can­di­dates will be em­ployed by them. It is ex­pected that all this ef­fort will cul­mi­nate in the coun­try achiev­ing the Hon’ble PM’s vi­sion of In­dia be­com­ing the ‘Skill Cap­i­tal’ of the world. The Gov­ern­ment and as­so­ci­ated stake­hold­ers in­clud­ing sec­tor skill coun­cil, train­ing in­sti­tu­tion and lo­gis­tics firms need to ramp up their train­ing ca­pac­ity so as to cater to the grow­ing train­ing needs of the sec­tor. It may also in­volve var­i­ous ef­forts in­clud­ing:

Cre­ation of Multi-Skill De­vel­op­ment Cen­tres / Kaushal Kendras for ev­ery sub-sec­tor ad­dress­ing the in­dus­try de­mand

En­gage the lo­gis­tics com­pa­nies to in­vest in skill de­vel­op­ment as their CSR ac­tiv­ity

Re­view and up­date the ex­ist­ing NOS / QP as per the sec­tor re­quire­ment

Im­prove and in­crease the modal­i­ties of vo­ca­tional cour­ses, ITI’s, etc.

Pro­mote tie-ups with State De­vel­op­ment Mis­sions & ed­u­ca­tional in­sti­tutes, Pro­mote use of tech­nol­ogy for im­part­ing and mon­i­tor­ing train­ing pro­grammes. Many in­dus­try As­so­ci­a­tions such as Ex­press In­dus­try Coun­cil of In­dia- EICI, Air Cargo Agents As­so­ci­a­tion of In­dia - ACAAI, Fed­er­a­tion of Freight For­warders As­so­ci­a­tion of In­dia- FFFAI, As­so­ci­a­tion of Multi Mo­dal Trans­porters of In­dia AMTOI Mum­bai/ Chennai Cus­tom House Agents As­so­ci­a­tion, In­dian Pri­vate Port Ter­mi­nals As­so­ci­a­tionIPPTA, etc, have been de­liv­er­ing train­ing for their As­so­ci­a­tion Mem­bers and the LSSC should lever­age them to do the train­ing along with the var­i­ous train­ing or­gan­i­sa­tions fo­cus­ing on skills train­ing in the lo­gis­tics sec­tor.

Cur­rently, the in­dus­try em­ploys over 20 mn peo­ple and it is pro­jected that the sec­tor will re­quire over 13.65 mn peo­ple LSSC has a tough task of be­ing able to skill and cer­tify these 13 mil­lion youth be­fore they en­ter the job mar­ket

Se­nior Vice Pres­i­dent TeamLease Ser­vices

Neeti Sharma

CEO LSSC

Capt. Ra­manu­jam

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