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FORECASTING  THE SUPPLY AND DEMAND OF THE LOGISTICS HUMAN CAPITAL 

Global Overview

GCC Overview

Current and Future Trends

Human Capital

Bridging the Gap

PRESENTATION OUTLINE

GLOBAL LOGISTICS SCENARIO - TRENDS

Source : Cerasis.com

GLOBAL LOGISTICS AND SUPPLY CHAIN ENABLERS

Global treaties.Entrepreneurship.Industrial development.Commerciality. Technology. Geopolitical scenarios.

LOGISTICS AND SUPPLY CHAIN IN THE GCC- FOCUS ON GROWTH

An important trans-shipment and multimodal hub.

An ambition to move away from being a trans-shipment 

hub to a value added logistics hub.

Government Investments on logistics infrastructure.

The GCC Logistics Industry has witnessed 10% cumulative

annual growth rate since 2008.

Building capabilities and opening up to the rest of the

world.Far from integration & co-ordination of multimodal networks.

Different stages of development in each country making it difficult

to integrator.

Difficult to attract capabilities to the Industry given it’s image and

lack of clear regulations.

LOGISTICS PARADIGM CHANGE IN THE GCC

State owned enterprises to lead and inspire by Investing in Mega ProjectsHigh Government spending on InfrastructurePublic sector excellence in service and operations

Trade and Transportation hubTourism and MICE prime destinationKnowledge economy based on education, Media Information, Technology and Financial sectors

High quality InfrastructurePro Business regulatory policiesHigh Skilled labourFree Zones & Economic clustersFDI GrowthStrategic Location

Government : A Key Driver

Focus on core Economic Factors

Attractive Investment Environment

FUTURE TREND OF LOGISTICS INDUSTRY- CAPABILITIES REQUIRED 

Increasing pressure of fuel prices.

Decreasing rates of transport and shipment prices.

Environmental standards and requirements

Economic outlook

GCC Logistics Performance Index Results

Societal view of logistics

CHALLENGES IN THE LOGISTICS SECTOR

Increases of over 50% seen across the GCC due to subsidy reductions and adjustments

Fuel represents approx. 30% of operating costs of transport operations

Increased operating cost driving necessity for increased efficiency and cost reductions

Upward pressure on rates and consumer pricing

INCREASING PRESSURES OF FUEL PRICES

DECREASING RATES OF TRANSPORT AND SHIPMENT PRICES

Academic Skills :

Project Management

Technical Understanding

Understanding of Cross Cultural/ Global Issues

Complex Problem Solving Skills

Understanding of Legal issues

Information technology

Global economy

REQUIRED SKILLS IN SCM

Soft Skills :

Ability to Communicate Effectively

Ability to Logically organise Thoughts/ Ideas

Leadership

Desire to Learn (Lifelong Learning)

Ability to Facilitate

Proactivnes.

Entrprneurship.

Due to the new global trends in logistics and supply chain new skills have become necessary:

Operation

SupplyDemand

Logistics

Integration(Commercial skills)

Production and Inventory controlMaster SchedulerDemand PlannerWarehouse Operations PlannerPackaging Engineering

LogisticianTraffic, Dispatcher,Transportation PlanningWarehouse Operation PlannerPackaging EngineeringDriverClerkMaterial Handler

Program managementProduct developmentCustomer supportSupply Chain ExecutiveSupply Chain Technical

BuyerProcurement AnalystsProcurement AgentsSupply Chain PlanningForecasterMaster SchedulerSchedule Program Manager

SupportGlobal Trade ControlProgram ManagementSupply Chain Security

SPECIFICS SKILL SETS REQUIRED FOR LOGISTICS/SCM OPERATIONS  

An opportunity to increase the levels of trained nationals with the vocational skills that form the bulk of logistics employment.

Rise awareness of the importance and potential for transport and logistics to provide a bright career.

Change the image of LSC from the traditional style to the new technologically advanced global trade concept.

Entrepreneurship- Logistics is based on bright business and industrial ideas that are enabled by policies and procedures.

DEVELOPMENT OPPORTUNITIES IN LSC

Expo 2020 will create more than 277,000 to 300,000 job opportunities within 2013 to 2021.

40% of the required enters the market each year

The gap in the demand and the forecast promises present good employment opportunities

An increasing number of institutions offer related courses

EMPLOYMENT GROWTH IN GCC

Health care

Real Estate

Retail

Hospitality

Construction

Banking

Logistics

Oil & Gas

Telecom & IT

79

77

71

63

54

54

53

37

28

63

50

75

74

62

33

70

21

24

2015 2014

Employment Growth by SectorNet percentage of firms increasing headcount

Source: Gulf Talent Survey of HR Managers

Human capital forms one of the key pillars of the logistics industry.

It is categorised by three conditions:

The highest level of employment is at the bottom of the transport management pyramid.

It is becoming increasingly more sophisticated with a changed emphasis from manual systems and processes to modern sophisticated electronic data and transport management systems.

This increase in sophistication and the requirement for qualified capabilities will shift some of the jobs from the bottom of the pyramid to the top half.

This trend is set to accelerate, particularlyin Oman and the Middle East region, where standards are still far below international best practice.

HUMAN CAPITAL IN LOGISTICS INDUSTRY

Operation & Support (Foremen, Supervisor, etc.)

Engineering /SME

Management (GM/Manager)

Executive (CEO/Director)

FUTURE TRENDS

Shortage of trained nationals with the vocational skills that form the bulk of logistics employment.

Lack of awareness of the importance and potential for transport and logistics to provide a worthwhile career.

A perception that transport is an unworthy Industry to work, resulting in roles being filled by expatriates.

A lack of consistent, credible training and logistics standards.

Logistics as an independent sector is at it’s early years and a lot should be done to regulates and make it attractive to the national workforce.

SKILL GAP

BRIDGING THE SKILL GAP

One of the primary aims of economic diversification is to create new jobs in the private sector.

Governments understand that investing in skills, education and training is critical for developing a sustainable local workforce.

The skills gap is getting bigger due to rapid changes in technology and ways of doing business.

The following is recommended to close the gap:

Collaboration between the governments, private sector and the      society. Aligning academic curricula with the private sector needs.

Developing the workforce through hands on  training

Providing Information about the available careers.

Encouraging a culture of Innovation and Entrepreneurship.

Setting clear regulations and standards for the logistics and supply     chain industry.

ENABLERS TO ATTRACT LOCAL WORKFORCE TO LOGISTICS

There is an urgent need to get more GCC nationals working in the private sector. The old model of employing nationals in high-paying government jobs is no longer sustainable.

In the UAE and Qatar, only 1% of the private sector workforce is made up of nationals, rising to a high of just 18% in Saudi Arabia.

An opportunity for the Governments to re-skill unemployed youth to work in a sector that is evolving to become very advanced.

An opportunity to create SME in the field of logistics and encourage entrepreneurship.

Prepare and equip students for the workplace before they become job seekers, ensuring alignment between education, financial institutions, the private sector and government authorities.

THANK YOU !

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