Skills shortage hobbles logistics efficiency

Lack of capacity set to bite ALAN PEAT THERE IS a clear skills shortage in the logistics and transport industries, according to Leon Raath, Transnet executive and national president of the Chartered Institute of Logistics and Transport in South Africa (CILTSA). The reason, he says, is because supply chains are continually becoming more complex, and ever-higher skills levels are required to come up with appropriate logistics solutions. “Logistics can be imagined as a pyramid system - needing three components to work perfectly in tandem to create a logistics eco-system.” Physical modes At the apex are the physical transport modes being operated on rail, road, air and sea, and the industries associated with this cargo movement function. “These logistics service providers need to be of world-class standards, if they’re going to achieve optimum efficiency.” One supporting base of the pyramid comprises the transport infrastructure - road and rail networks, seaports, airports and the operating units linked to all of these. “There has to be proper and continuing development and maintenance of this infrastructure,” said Raath, “if it is to provide the required service levels.” But the crucial factor lies in the other base support - where the skills and expertise, the knowledge capital and the value creation in service lie. “This,” Raath told FTW, “emphasises the strategic imperative to have excellent skills in logistics and supply chain management as one of the three components to have logistics work as an interdependent system. Without the skills, all the other functions in the pyramid will grind to a halt. A study by the Harvard Business School in the US confirmed this truth. In an interview with five of the top CEOs in North America, skills was one area under question - and the findings were that they are “critical”. “Customers,” said Raath, “are continually looking for higher skills levels and lower costs.” Cost imperative But you can’t achieve the cost imperative if the skills are in short supply - and the SA logistics community needs to ensure that its people have these skills if it hopes to craft the proper logistics solutions. “The tragic thing is that, if the people working in logistics and transport do it right, you get a positive quantum effect,” said Raath. “If not, it’s a negative quantum. “And big money is involved. If the logistics eco-system doesn’t work, it can cost you.” The latest world trend in skills development is “generic” training and skills development in the logistics and supply chain, according to Raath. “This,” he said, “because the principles and concepts remain the same in different modes of transport and you have to apply the same basic principles in transport and logistics whether you move passengers or freight. “It’s like engineering principles remaining the same across the stratum. They are not dependent on where you work.” A primary goal of the institute, Raath added, is to uplift the standards across the board.