Transportation, Logistics and Supply Chain Professionals – current & future needs Prof Archie D'Souza

India has consistently, for almost three decades, been among the fastest growing major economies of the world. While serves have been a major contributor to this growth story, manufacturing isn't too far behind. This high level of growth has been riding on investments made by governments at the centre and states, the private & public sectors and through public-private partnership (PPP), on infrastructure projects. Primary among these are ports, airports, roads, special economic zones (SEZ), industrial clusters & corridors, dedicated railway lines for freight and warehousing, to name but a few areas.

These investments have resulted in a great deal of opportunities for professionals at every level. Thanks to this and various initiatives from the HRD and Labour & Employment ministers, there courses are being developed to train professionals in the field of Logistics & Supply Chain Management (SCM).  The Ministry of Labour and Employment (MOLE) has come out with a number of vocational programmes to train people at every level in the field of Logistics.  Details of these skill development programmes are available on the MOLE and National Skills Development Corporation (NSDC) websites.  Similarly, universities, in their MBA programmes, have started introducing Logistics as an integral part of the courses that students have to undergo. We will look at courses later. Right now, let us look at the industry.

Another benefit that this high growth brings is a greater demand for goods of all kinds, across segments, whether they're luxury goods or products for mass-consumption. Wherever new manufacturing units are set up, plant and machinery need to be procured and installed. Once commissioned, these units need to procure, among other things, raw materials, components and packing materials to ensure that production takes place. These have to reach the factories. Similarly, finished goods need to be moved from plant to market. Agricultural products too need to move from farms to consumers. Before goods leave their origin, they, almost always, need to be packed. Also required is storage at the origins, destinations and in-between. All these activities need the services of professionals, called logisticians. The business of logistics requires crores of professionals, at various levels, taking part in myriads of activities.

What is so notable is the fact that while professionals in many industries may have observed a notable decline in skills amongst recent graduates, during the past couple of decades, the opposite is true in the field of SCM.  I can safely ascertain that we’ve become a profession and a recognised one at that.  As stated, several universities are offering specialised courses in these areas.  This is the trend world over.  Globalisation of the economy has become a reality that we can’t run away from.  Technology has been upgraded and supply chains have become very sophisticated.  Therefore, good quality SCM professionals are a necessity without which no economy will survive.

In the past and to some extent in the present too, universities have not been working in sync with industry.  However, in the field of Transportation and Logistics this trend is changing.  The contribution to the world economy of shipping, aviation, road & rail infrastructure and every other sector related to the field of Logistics is tremendous.  Without transportation there would be no trade and most of the world’s populations would starve.  Centres of production and consumption are no longer close to each other.  International transportation infrastructure connects the two.  Without shipping, air and land transport services this would never have been possible.

Food grains, fertilisers, cement, coal, ore and a host of products are transported in bulk carriers; crude oil and other liquids as well as LPG & LNG and several petroleum products – crude and finished – move in container ships; container ships, ro-ro services, break-bulk, reefers, etc. – we can make a long list of the kind of shipping services available.  Without shipping the entire world economy would collapse.  Water is the most economic mode of transporting most goods.  Only pipelines are cheaper for a single liquid or gaseous commodity moving in very large quantities.  Shipping services also leave a much smaller carbon footprint compared to the mother modes of transportation.  Here again, pipelines are the exception.

Air services also play a major role in international trade.  Transportation of goods by air has reached unimaginable proportions.  Today the world’s major passenger carriers earn a great deal of revenues from cargo, more often than not, exceeding passenger ticket revenues.  Several major airlines, e.g. Lufthansa Singapore Airlines and Emirates Airlines, have hived off their cargo divisions into wholly owned subsidiaries.  In addition, we have all-cargo airlines and integrators – cargo airlines offering door-to-door services for freight.  The variety and range of services that all these airlines offer are numerous.

Airports, ports, truck & train terminals, courier service providers, etc. all require top quality logistics professionals.  Apart from these, there are a range of intermediaries like freight forwarders, customs brokers, shipping & air cargo agents, etc. that need professionals.  Manufacturing and service undertakings too require logistics and SCM professionals.  So, the opportunities are virtually unlimited.

What is Logistics?

Logistics is the universal thread or pipeline that plans, coordinates and implements the delivery of goods and services to customers all over the world. As we've seen, without trade there can be no economic development and without transportation, there can be no trade. Transportation, the most important component of logistics, is the life-blood of the world economy. There are several other components logistics. Professionals in this field, i.e. logicians, manage and coordinate the activities in the global pipeline to ensure an effective flow of materials and information from the time a need arises until it is satisfied; often beyond, e.g. equipment that is supplied needs servicing, viz. maintenance, repair & overhaul (MRO). Service providers need to procure, move and store spares for this purpose. This flow and storage of goods encompasses planning activities, implementation and control in both forward and reverse directions.

The sector currently employs several crores of people and will create many more jobs in the next two or three decades. Some of the activities or functions of industrial logistics include, order processing, inventory management, transportation, storage (viz. warehousing), packaging, customs clearance and several value-added services.

Logistics involves so many critical business activities that nearly every business organisation, from the smallest to the largest, requires, either through direct employment or indirectly, professionals in the field. Needs range from CEO to drivers and handlers. In other words, besides qualified persons, a number of unqualified, but trained, people are needed. Also required are analysists, software developers and experts in robotonics and artificial intelligence, the list seems endless.

Career Paths for Logistics Professionals

Listed here are some of the career paths in logistics:

• planners and analysists
• software developers
• robotonics and AI professionals
• port and airport managers
• shipping, airline, road and rail transportation enterprises
• warehousing and materials handling
• inventory planning and control
• procurement and negotiating
• legal experts, especially those conversant with international law
• insurers
• packers
• surveyors

As one can see, most of the jobs in the sector do not require highly qualified individuals. At the same time, those employed could get themselves qualified while on-the-job. Universities and institutions across India and the world, offer certificate, diploma and degree courses in logistics, including an MBA. Indeed, the industry, as well as professionals employed here are poised for exponential growth.

[The writer is a former logistics professional and currently adjunct professor at Dayanand Sagar University]