Asean 1st may 2014 (thomas sim)

Enhancing ASEAN Logistics Services Seminar Cebu, Philippines, 1-2 May 2014

ASEAN-‐AUSTRALIA NEW ZEALAND FREE TRADE AREA (AANZFTA) ECONOMIC COOPERATION WORK PROGRAMME (ECWP)

Thomas SIM - Chairman, Working Group Education & Training AFFA (ASEAN Federation of Forwarders Associations)

Capacity Building – ASEAN and the Global Market Place

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Scoping My Presentation…

AFFA

Singapore Logistics Association (SLA) www.sla.org.sg

ASEAN Federation of Forwarders Associations (AFFA)

www.affalog.net

International Federation of Freight Forwarders Associations (FIATA)

www.fiata.com

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Over view of ASEAN Roadmap

“AANZFTA Conference on Enhancing ASEAN Logistics Services”

Cebu, Philippines,

28th to 29th April 2014

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INTRODUCTION

§  The 10-member ASEAN has signed an initiative aims to liberalize logistics services and enhance the regional bloc's production base in line with ASEAN's move to create a single market by 2015 (AEC 2015)

§  includes a proposed road map to integrate freight, transport and other logistics services to move goods more cheaply and efficiently, people and documents…

§  includes enhancing competitiveness of ASEAN logistics service providers by expanding their capability and developing their human resources

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Overview of Logistics in the ASEAN Member Countries

ü Overview of Logistics in the ASEAN transport and logistics systems are consisted of (1) shippers, traders, and consignees; (2) public and private service providers; (3) regional and national rules, policies, and

institutions; and (4) transport and communications infrastructure

ü Level of integration of the ASEAN logistics system - price,

- time and - reliability

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ASEAN ROADMAP FOR INTEGRATION OF LOGISTICS SERVICES (#4 - HRD)

39 Develop and upgrade skills and capacity building through joint trainings and workshops

40 Encourage the development of national skills certification system for logistics service providers.

41 Encourage the development of an ASEAN common core curriculum for logistics management

42 Encourage the establishment of national /sub-regional centre of excellence (training centre)

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ASEAN Logistics Strengths & Weaknesses

ASEAN Logistics

STRENGTHS

WEAKNESSES

1.  Logistics service providers supply their services under difficult conditions.

2.  Many, but not all, ports are being upgraded and managed efficiently.

There is a strong movement toward improving customs operations in ASEAN countries, which is critical for logistics development.

1.  Customs -Electronic processing of inward general manifest

2.  Ports and maritime shipping – Full-truck scanners for security?

3.  Rail transport− Limited rail management resources, especially for intermodal movements.

4.  Road transport − Lack of Transport International Routier (TIR) agreements or similar customs transit agreement that allow trucks to travel easily from one country to the next with transit goods

5.  Inland waterway transport − Equipment for handling containers at inland waterway ports?

6.  Air transport − Large pallet scanners for security? 7. Logistics services − Standard service contracts, multimodal transport documents, and house bills of lading

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Expanding Capability of ASEAN Logistics Service Providers & Human Resource Development

AFFA WGET

development of national skills certification system for

logistics service providers

development of an ASEAN

common core curriculum for

logistics management

establishment of national/sub-

regional centre of excellence

Expanding Capability of Building of ASEAN logistics service providers and human resource development

Item 40

Item 41

Item 42

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AFFA Survey & Study on HRD in AFFA Member Countries

ü Commissioned by AFFA during its AGM 2008

ü  Survey and Study Project undertaken by AFFA Member - Singapore Logistics Association (SLA) from 21st June to 31st August 2009

ü The questionnaire was developed based on the desk research by identifying the gaps of training needs in ASEAN member country and then questions were designed according to the measures listed in the Roadmap from item 40-42.

ü Aggregated numbers of logistics services providers and freight forwarding companies registered in the 11 AFFA Associations Members is estimated to be in excess of 10,000 firms

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Research Objectives and Methodology

Reality – No ASEAN-standard logistics training policy being developed so far…

Ø  a lack of understanding of what makes up logistics and how a logistics policy should be developed

1. To Develop National Skills Certification System 2.  To Develop an ASEAN Common Core Curriculum

for Logistics Management 3.  To Establish National/Sub-regional Centre of

Excellence (training centre)

Objectives:

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Survey Methodology

Sample Survey Analyses

In English. 4 sections: 1.  overview of industry

training and development.

2.  training and development in the national association

3.  assessment of training needs for the logistics

4.  assessment of training and development for the local and regional logistics industry.

Sample – AFFA which consists of 10 countries and 11 members

Data were gathered through emails and analyzed using SPSS 16.

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Findings – Overall View of Current Industry Training and Development in the AFFA Members

1 Only 3 out of 11 national associations (27%) have offered industry training programmes that meet the national standard. The remaining associations representing 73% currently did not offer any training programmes that are considered to be at their national standard level.

Availability of National Standard of Industry Training Programme

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2

Only 46% indicated that there is sufficient availability of training resources for logistics industry. Of the 3 associations who have offered industry training programmes, 2 have indicated sufficient availability of training resources. However, 54% have indicated that there is lack of training resources..

Availability of Training Resources

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3

64% indicated that there was no formal or professional qualification set as entry requirement to join the logistics industry. Only 9% revealed that, despite the lack of national standard of industry training programme, in Malaysia, there is a formal qualification as requirement to join the industry.

Formal/Professional Qualification as Entry Requirement

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Satisfaction of Overall General Skills

46% felt dissatisfied, 36% were satisfied while 18.2% held neutral view about the current overall general

skills in the logistics industry.

dissatisfied 46%

neutral 18%

satisfied 36%

How satisfied are you with the overall general skill level in your logistics industry?

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Overall Skill Level of Professional and Practitioners

27% felt satisfied about the current overall skill level of professional and practitioners. The remaining 64%

indicated neutral or dissatisfied. 36 % held the view of neutral.

dissatisfied 28%

neutral 36%

satisified 27%

very dissatisfied

9%

How satisfied are you with the current overall skill level of professional and practitioners in the logistics industry?

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Training and Development Committee

1

9 out of the 11 national associations indicated that they have a training and development committee. In particular, 6 of these 9 associations have claimed no availability of national standard training programme and 4 claimed to have no sufficient availability of training resources.

Do you have a Training & Development Committee in your

Association ?

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Composition of the TDC

Number of Members of Training and Development Committee

2

Average size of the training and development committee was less than 5 members (67%). 22% has between 6-10 members. Only 1 national association has more than 10 members in their training and development committee.

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Functions of TDC

Main Functions of Training and Development Committee 3

The identified main functions of training and development committee were (i) identify and review training and development needs (38%), (ii) improve the quality and effectiveness of education and training programmes (33%) and (iii) provide guidelines and develop training programmes (29%).

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Types of Training Programmes

Types of

Training Programme

B

C A Workshop and

Seminars (73%)

Short Professional Courses (55%)

Validated courses by professional

body at Certificate and Diploma level

(28%)

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Satisfaction Level on Current Training Curricula and Current Skills Level

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Satisfaction level with current training curricula versus availability of national standard of industry

training

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Satisfaction Level with Current Skill Level

Satisfied 56%

Neutral 33%

Dissatisfied 11%

Satisfaction Level with

Current Skills Level

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Assessment of Training Needs for the Logistics Industry

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Assessment of Training Needs for the Logistics Industry

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Important Subjects (for Development of Training Programmes)

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Assessment of Training and Development for the Local and Regional Logistics Industry

70% chose diploma level as the adequate level of qualification for national skill certification as compared to 30% for degree level

All 11 national associations agreed that there was a gap existed

1. Gap between Expected and Actual

Skills

91% strongly agree to have a common core logistics training programme & national skills certification system

2. Support for National Skills Certification

System

4. Level of Qualification

57% for validated certificate by int’l association and to be delivered by national association. 43% supported certification from local reputed college, polytechnic or university

3. Types of Certification System

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Main Constraints to Provide National Training Programme

1.  Government policy and legislations – lack of establishing industry practice and standards; financial supports in terms of funding for training of manpower

2.  Physical infrastructure – Transportation system and Logistical facilities

Social

1.  Difference in language

2.  Lack of training resources such as professional and qualified trainers, training materials and standardization of industry practices and standards

1.  Lack of competitive advantage in freight forwarders and logistics service providers

2.  Uncertainty of overall requirements of the logistics industry

Government/ Political

Economic

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Key Restraints to Develop Common Core Curriculum for ASEAN Countries

1.  Diversity – language and cultural differences

2.  Social inequality 3.  Lack of professional HR

and HR capability development

Level of Economic

Development

Social Barrier

Government

1.  Different in economic policy for development – financial funding and role of association and industry development

2.  Different in infrastructure, technology and communication system

3.  Standardization of industry practices - different documentation procedure

1.  Government restrictions and rules

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Setting up Regional Training Centre for ASEAN

55% chose one regional centre to cater training for the ASEAN countries. Singapore and Thailand were equally chosen as regional centre. 18% chose two regional centres, with Singapore and Thailand as preferred locations. Finally 9% chose 3 or 4 regional centres.

§  100% supported the setting up of Regional Centre for logistics associations to help expanding the capability for ASEAN Logistics Service Providers.

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Conclusions - Overview of Current Industry Training and Development

§  Only 27% of the ASEAN national associations have offered a national standard logistics training programmes. §  Both Singapore and Indonesia offered

national standard training programmes. §  They were SLA, SAAA and INFA offered

FIATA or IATA-FIATA diplomas relating to logistics, freight and supply chain management.

§  The remaining associations offered workshop and seminar or short courses related to freight and logistics operations.

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Conclusions - Overview of Current Industry Training & Development (Qualification as Entry Requirement)

§  This finding was also echoed in the type of formal and professional qualification as entry requirement to the logistics industry. §  64% of ASEAN had no formal or professional

qualification set as entry level. §  For those national associations who offered

national standard training programmes were accredited by FIATA or IATA.

§  However, formal and professional logistics qualifications are also supported by public institutions such as government polytechnics and universities (40%).

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http://www.asean.org/communities/asean-economic-community/category/logistics-services


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In comparison with - ‘ASEAN Member States’ Qualifications of Profession in the Logistics Services’

“Compilation of ASEAN Qualifications Professionals Logistics”


ü Mari%me Cargo Handling services ü  Storage & Warehousing services ü  Freight Transport Agency services ü Other Auxiliary Services: Bill Auditors ü Other Auxiliary Services: Surveyors ü Other Auxiliary Services: Freight Brokers ü  Courier services ü  Packaging services ü  Customs Clearance services

ü  Interna%onal Mari%me Freight Transporta%on excluding Cabotage

ü  Interna%onal Rail freight transport services

ü  Interna%onal Road freight transport services ü Maintenance and Repair of vessels

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Conclusions - Overview of Current Industry Training and Development (Training Resources)

§  Less than half of the 11 national associations indicated that there was sufficient availability of training resources for their logistics industry.

§  Overall satisfaction on general skill level in their

logistics industry, 46% felt dissatisfied as compared to 36% and 18% held neutral view. §  Further insight into those national

associations who offered national standard training programmes, 67% was satisfied with the overall skill level as compared to 25% who did not have any offer of national standard training programmes.

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Conclusions - Overview of Current Industry Training and Development (Training Resources)

§  Expectedly, for those countries that faced insufficient availability of training resources for their logistics industry, 83% was dissatisfied with their current overall skills. §  This result showed that there is a high level

of dissatisfaction in the overall skill level for those countries that did not offer national standard training programme, and had insufficient training resources.

§  In relation to the level of overall satisfaction on the skill level of professional and practitioners, 36% expressed satisfied as compared to 46% was dissatisfied.

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Conclusions - Overview of Current Industry Training and Development (TDC)

§  82% of the ASEAN’s logistics national associations have setup a training and development committee.

§  67% has between 1-5 members and 22% has between 6-10

members with meeting held once per month (34%), once per quarter (33%) or bimonthly (22%).

§  Roles of training and development committee were §  (i) to identify and review training and development needs

(38%), §  (ii) to improve quality and effectiveness of education and

training programme (33%) and §  (iii) to provide guidelines and development training

programme (29%).

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Conclusions - Overview of Current Industry Training and Development (Training Programme)

§  Majority of the training programmes offered are workshop and seminar (73%), followed by short courses (55%) and certificate and diploma validated by professional body (28%).

§  67% of national associations were satisfied with their current training curricula as compared to 11% dissatisfied. §  Contradicting results were shown when cross

tabulating between the satisfaction levels with availability of national standard training programme and between satisfaction levels with availability of training resource.

§  Both groups showed their positive satisfaction level whether there was availability of national standard training programme or availability of training resource.

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§  When comparing the training programmes and courses to the current skill level of professional and practitioners, 56% of the national associations indicated that they were satisfied as compared to 11% of dissatisfaction. §  high percentage of neutral view. §  implied that the current skill level meets the

requirements for their logistics operation, however, for those countries that provide sophisticated value added services and integrated logistics service might find their current training programmes and training resources are insufficient.

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Most common types of programmes are workshop and seminar type (22.6%) and short professional courses.

•  vocational skills and job related. Anticipated that most logistical operations in the ASEAN member countries are freight related, 90% indicated freight management such as multimodal transport, air freight and sea freight as most important training/skills, followed by logistics and supply chain fundamentals (81.8%) and integrated services (81.8%).

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As for the subjects to be introduced in the training programmes, professionals and practitioners in the ASEAN member countries should be equipped with: ü fundamental logistics and supply chain

management, ü understanding of the provision of supply chain

solutions, ü customer service management, ü commercial and operational logistics and ü e-supply chain.

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Conclusions - Overview of Current Industry Training & Development (Common Core & NSCS)

§  All 11 national associations participated in this survey supported and agreed that there was a gap existed

§  More than 90% strongly agreed that there should be Common Core Logistics Training Programme and National Skill Certification System for all ASEAN member countries. §  57% supported to have Validated Certificate by

International Association and to be delivered by their national association.

§  43% supported certification from local reputed College, Polytechnic or University

§  70% preferred Diploma level as compared to Degree level (30%).

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Conclusions - Overview of Current Industry Training and Development (Constraints)

§  Main constraints were social issues, differences in the economic development and government policies.

§  The result supported setting up a Regional Centre for logistics associations to develop training curriculum to expand the capability for the ASEAN countries and its LSPs §  55% suggested one Regional Center (Singapore

or Thailand) and 18% proposed two Regional Centers to be located in Singapore and Thailand.

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Conclusions – Common Core Curriculum for ASEAN

Common Core Curriculum for the ASEAN countries.

•  Standardized basic knowledge and vocational skills at certificate and diploma levels validated by International association or local technical institutions.

•  should embrace: freight management mainly air, sea, rail and multimodal. basic legal, business management, ASEAN intra-culture and business ethics, business communication, statistics, economics and marketing should also be incorporated at the diploma level.

•  duration for certificate level should not be less than 6 months and diploma level should be more than 12 months. Each module should be taught with minimum of 24 hours per subject.

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Survey Study Recommendation

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§  Advanced/ Higher Specialist Diploma: ü The course curriculum to include: Project

Management, CRM-data mining, Global Procurement, International Marketing, Asian Business Strategies, Facilities Management, Environmental-friendly Transportation, Technology, Integration of Transportation Modes.

ü  designed and Validated by International Associations, as well as conducted by local technical institution.



§  The Common Core Curriculum should be developed and delivered using a common language such as English

§  For those non English-speaking ASEAN member countries, the courses can be translated to their mother tongue

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ü  strong support of setting up Regional Centre ü  due to the differences in political and economic

systems, the pace of institutional cooperation for Asian economic integration may be slow and the multi-speed approach may be needed

ü  its structure ought to be flexible and open until a

stronger political and economic convergence is achieved.


Joint-Statement made at the 23rd AFFA AGM (Jakarta, 23rd Nov 2013)

The AFFA 11-members’ representatives unanimously recognized the fact that public and private sectors’ stakeholders should accelerate the improvement of the three pillars of connectivity programs and the measures outlined in the “ASEAN Roadmap for Logistics Services Integration” namely: Ø Physical Connectivity, Ø  Institutional Connectivity, and Ø People-to-People Connectivity, as well as Ø  Safety & Secur i ty deve lopment and

implementation issues

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The ASEAN Federation of Forwarders Associations (AFFA) HRD Project

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Co-operation Agreement between AFFA - ASEAN Secretariat

for

“Sustainable Human Resource Development in Logistic Services for ASEAN Member States”

ü  recently granted approved-in-principle (AIP) ü  supported by the Japan-ASEAN Integration Fund

(“JAIF”) under the adopted Rules of Procedures of the Japan-ASEAN Integration Fund Committee.


AFFA Project - Sustainable HRD in Logistic Services for ASEAN Member-States (Common Core Curriculum)

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1.   Fundamental of Logis%cs and Supply Chain Management 2.   Mul%modal Transport Law and Opera%ons 3.   Cross Border Transport Opera%on 4.   Transport Opera%ons Management 5.   Transport Corridors & Supply Chain Security 6.   Dangerous Goods Handling (All Transport modes) 7.   Risks Management (including Interna%onal Conven%ons) 8.   Trade Management (including UCP 600 & INCOTERMS 2010, etc.) 9.   Warehouse Management & Distribu%on 10.   Informa%on Technology in Freight Transport & Supply Chain Management 11.   Project Transporta%on 12.   Cargo Packaging and uni%za%on 13.   Marke%ng for Logis%cs 14.   Logis%cs Planning and Analysis 15.   Supply Chain Collabora%on & Logis%cs Solu%ons *(Pedagogy & Andragogy Methodologies/Trainings to be included)


AFFA Project - Sustainable HRD in Logistic Services for ASEAN Member-States (Coverage/Duration)

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Planning phase for drafting core-curriculum

Refinement of project syllabus in consultation with 15 experts & trg. manuals development

Implementation of 1st TOT (basic level programme)

Implementation of 2nd TOT (intermediate level programme)

Implementation of 3rd TOT (advance level programme)

Evaluation & Recommendation and Reports Submission

Future Proposal: Setting-up of Sub-Regional

‘Centre of Excellence’

*For 50 selected trainers (Pedagogy & Andragogy Methodology will be delivered as well)


Benchmarking of Training Standards in Freight, Logistics & SCM with International Organizations

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Benchmarking FIATA’s Global Training Standards

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‘The Global Voice of Freight Logistics’

•  Total Validated National Training Programmes = 65 programmes from 55 countries (updated March 2014)

“The Architect of Transport”

International Federation of Freight Forwarders Associations



•  Number of FIATA Diplomas issued up till Mar 2014 (by Country)

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AFFA Members who are FIATA’s Association-Members

ü Indonesia (ILFA) ü Singapore (SLA &

SAAA) ü Malaysia (FMFF) ü Thailand (TIFFA) ü Cambodia (CAMFFA) ü Myanmar (MIFFA) ü Vietnam (VLA) ü Brunei (BRUFA) ü Philippines (FEDFAP)

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Thank you


Thomas SIM [email protected]

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ASEAN

AANZFTA Seminar Enhancing ASEAN Logistics Services Cebu, Philippines, 1-2 May 2014


Day 1 – Interactive Session 2

CAPABILITY & CAPACITY BUILDING


Interactive Session No. 2

CAPABILITY AND CAPACITY BUILDING How do we build public and private sector capability and capacity in each ASEAN country for short, medium and long term gain? ASEAN working groups will explore the capability and capacity needs of member countries, according to their various levels of development, and report the findings back to the plenary session.


Capability and Capacity Plenary

“Feasible, reasonable and practical steps to build ASEAN capability and capacity (in the public and private sectors) to improve logistics and supply chain performance, now and in the future”.

AANZFTA Seminar Enhancing ASEAN Logistics Services Cebu, Philippines, 1-2 May 2014


Seminar Day 1

CONCLUSIONS

Asean 1st may 2014 (thomas sim)

Economy & Finance

Transcript of Asean 1st may 2014 (thomas sim)