https://bcic.in/upload/pdf/Synergy%20March%202019%20Web.pdf
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. Even as I write, the Adani
Group has been awarded 5 airports.
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 are courses 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. Without trade there can be no economic development
and without transportation, there can be no trade. Transportation is
the most important component of logistics. 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.
Most
of the jobs in the sector do not require highly qualified
individuals. 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 logistics professional and currently adjunct
professor at Dayanand Sagar University]
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