Ask most managers in
the African freight and
logistics sector what
their biggest challenge
is, and most will answer “skills,”
followed by corruption, customs
and infrastructure.
Billions are being invested in
port and infrastructure upgrades
across Africa, but the full
benefits will only be felt if the
continent has the right skills to
ensure the smooth f low of goods.
The problem starts in South
Africa, where a widening supply
chain skills gap was identified in
the 2012 Supply Chain Skills Gap
Survey conducted by University
of Johannesburg researchers
Rose Luke and Gert Heyns.
According to Barloworld
Logistics’ 2013 Supply Chain
Foresight report, the supply chain
skills shortage is viewed as one
of the top five constraints to
South African supply chains and
the single biggest constraint to
competitiveness.
Most companies have in-house
training
programmes,
but the research
shows that this
is not enough.
For the
industry –
and African
economies – to
prosper, they
have to attract
more of the best
and brightest.
In a global survey by John
Manners-Bell of 300 logistics
executives, roughly two thirds
claimed that they had a problem
filling posts. Manners Bell is
the editor and chief executive
officer of UK-based Transport
Intelligence.
He said the executives
attributed the shortage of
candidates mainly to an
inadequate supply of good
candidates, low average wages
and the industry’s relatively poor
profile as an employer.
As Manners-Bell points out,
skills is the one area over which
logistics companies have the most
control.
“The industry can inf luence
many of the issues identified,
such as the matter of low pay. The
industry needs to escape from
the low pay-low quality cycle
trapping it in many parts of the
world. Logistics companies, their
clients and governments can all
play a role in this.
“The industry can also work on
improving its
low profile in
educational
establishments
and its poor
image. Far
more needs
to be done if
the brightest
candidates
are to be
tempted away
from careers
elsewhere, such as in high-tech
or banking sectors,” he says in
a paper published in the 2012
Outlook on the Logistics and
Supply Chain Industry published
by the World Economic Forum.
Addressing the skills gap
is, however, a joint effort
according to Vineet Agarwal,
joint managing director of the
Transport Corporation of India.
Writing in the report, he says
“with growing complexity in
managing supply chains and
changing demands, people issues
are taking precedence. The
government and private entities
need to combine forces to create
focused, sustained skilling and
training programmes”.
For all parties the incentive
is greater productivity and
improving the competitiveness
of African manufacturing and
supply chains.
In their study “What
Constrains Africa’s Exports?”,
Caroline Freund and Nadia
Rocha estimate that every extra
day it takes to get a consignment
to its destination in Africa is
equivalent to a .5% additional
tax.
This means that even if tariffs
on exports were zero, African
exporters would be at a cost
disadvantage.
Skills training in Africa needs
to take into consideration the
unique circumstances in each
country.
Many of the youngsters will
have grown up in an era where
private sector jobs were few and
far between. They enter the job
market with a very different
concept of what “work” is
compared to those who have seen
family members working in the
profit-driven private sector.
Knowing how to work, and
what is expected, is perhaps the
primary skill that needs to be
taught.
INSERT
Every extra day it takes
to get a consignment to
its destination in Africa
is equivalent to a .5%
additional tax.
