THE HUMAN FACTOR

Any job these days – white-collar or blue-collar – demands several skill-sets, some primary and some secondary; but all of them necessary for success and satisfaction. While employees of course should not pass the buck and find reasons to be dissatisfied, the employers need to invest time and resources in training, retraining and retaining employees.

Some skills are inherent, some are imbibed before an individual takes up duty, but there are many skills which are learnt (and/or taught) on the job. Education and academic training can only take the horse to the water; the horse needs to make an effort to drink the water there of in order to realize the benefits of the trek to the water-body. An eagerness to learn and grow is as essential as the willingness to train and teach.

And the logistics sector – diverse and wide as it is – is driven by individuals endowed with varying skills, expertise levels and educational qualifications. Either way, there is a need for employees with a host of abilities – communication skills, numeracy, general IT skills, customer relationship management skills, ability to work in teams, technical and practical competences, etc.

NO PERFECT PACKAGE
Of course, recruits never ever comeequipped with all the necessary skills. In extreme cases, all thelearning is done on the job, with theincumbent skipping any need forthe oretical knowledge and delvingright into the much-needed practicalhands-on.

Depending on the aptitudes of the recruit in question, he ends up contributing more to the bottomline of the company than perhaps even those armed with the academic qualifications considered mandatory for employment in the logistics sector. But these are exceptions – exceptional individuals with zeal to learn.

The reality is that there are individuals with a host of skills – different permutations and combinations – honed to varying degrees. What they lack in one aspect of performance, they make up for, in another. If each recruit has merely to focus and hone his core competency, it solves all problems.

However, these days, the logistics sector (or any industry for that matter), does not permit any employee to be an “island of competency”. Many skills not taught in schools and universities are actually essential for a successful career in the industry. What Prof Raymon Krishnan, president of the Logistics and Supply Chain Management Society (see interview) says in this regard, is of course a much-hackneyed truism: “There surely is a yawning gap between what is learnt in universities and what is actually happening on the ground.”

Often, in any country, there are some industrial sectors which are right on top when it comes to preferences on the part of job-seekers. Peer infl uence, perceptions of security and job satisfaction, social pressures and many such other factors often may force the logistics sector way down the list of career options one would prefer to be associated with. There often is, according to Prof Krishnan, a feeling among junior employees in the logistics sector, that what they have got is not by choice, but by compulsion due to the need to be employed on the one hand and the non-availability of jobs in the sectors of their choice on the other.

While employees in the logistics sector may quit and move on to greener pastures in other sectors in the economy, provisions are also in place for a reverse “expertise-drain” as well at times. Maersk Logistics for instance, does not lay any emphasis on a job-seeker’s prior experience in the logistics sector. Rather, basic skills, a strong commitment to customer service and dedication to hard work are the key criteria.

Perhaps, this is also one of the reasons why on-the-job training programs in the logistics sector are very important. Tony Hotine, regional manager Asia Pacific, Maersk Logistics, talks about (see interview) the Maersk International Shipping Education program, through which the company has been able to identify and develop many talented individuals and fast-track their careers within the group.

JOB REQUIREMENTS
At the lower-end of the logistics sector – the last lap, if one may label it so – the once-humble courier services have grown rapidly in the developing countries of Asia, challenging and threatening the very existence of the state-run postal services.

In a country like India where the supply of labor is always a step ahead of the demand of manpower, the plethora of small-and-medium courier companies in big cities are magnets which attract both young and old with employment opportunities. The turnover of these companies is also quite high, what with youth using them as a platform or a starting point to gain the muchsought- after work experience.

Unlike the high end of the logistics sector, the requirements for employment in courier companies are simple: diligence, courtesy while dealing with customers (senders and recipients), literacy to the extent of being able to read English and the local language, and in some cases, the ability to ride two-wheelers and/ or bicycles.

India’s largest domestic delivery network company – DTDC (Deskto- Desk Courier and Cargo) Limited – handles over 10 million consignments every month while serving 240 international destinations. It has its own international offices in the USA and the UK, and strategic tie-ups with Asian countries like Sri Lanka, Singapore, Hong Kong, Nepal, Bangladesh, Pakistan and China.

Subahsish Chakraborty, DDTC chairman and managing director of DTDC, tells Logistics Insight Asia that the attrition rate in his company is much less than the Indian courier industry average. An indication that the company takes care of its employees better with relatively better pay packages, fringe benefits (perhaps) and regular training which enables the employee to learn and develop his skills and experience a sense of growing along with the organization’s bottom-line.

“DTDC is an ISO-certified company, and hence, it follows that the company provides continuous training to its employees round the year. These training programs are both in-company as well as externalto the company,” says Chakraborty.

LUNCHTIME LESSONS
Meanwhile, the “dabbawallahs” of the city of Mumbai have amazed the whole world by their sheer efficiency and unerring accuracy of operations. This 125-year-old outfit, which is growing at the rate of about 10 percent per year, has an employee strength of about 4000. They carry over 200,000 lunch boxes (stainless steel containers with warm lunch) from homes to offices everyday, in local trains and on foot.

The gastronomic needs of working men and women in Mumbai who prefer to eat home-made food for lunch, are met quite efficiently by these errand-men who are at their busiest best between 10 am and 2 pm. (carrying filled lunch boxes in the mornings and getting the emptied ones back in the afternoon).

In fact, most of the employees are illiterate and have never been to school. They learn the symbology adopted by the outfit to identify the source and destination of the lunch boxes by rote and commit them to memory. Each errand-boy is aware of the geography of the region assigned to him – street names, building names, etc. and functions with the accuracy of a robot. Often, when a father steps down and hangs his boots, his son takes over and fills the vacuum created by the retirement.

While what drives them is, of course, the need to feed themselves and their family members, their professional life is characterized by the utmost dedication and the satisfaction that comes from being an instrument in fulfilling one of the basic needs of the customers. This is logistics at itssimplest, low-tech best!

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‘MANY RECRUITS ARE ILL-EQUIPPED WITH THE NECESSARY SKILL-SETS’

PROF RAYMON KRISHNAN, president of the Logistics & Supply Chain Management Society shares his concerns over current capability levels in the industry.

Q: Is it correct to say that training in the logistics sector tends to ignore the employees who actually get the jobs done?

A: If we look at the Asia- Pacific then, yes, this would be correct by and large, except for Singapore and Malaysia, where there are schemes in place and funds available for companies who want to provide training to their junior staff . This is a shortcoming which needs to be addressed by the logistics sector.

Formalized training ensures that one looks at working in the industry as a profession and not merely as a job. It is not enough if one merely has the theoretical knowledge in supply chain management and logistics, and no practical experience. There is a gap between what is learnt in universities and what is actually happening on the ground.

Q: So how strong is the academia-industry connection in logistics?

A: There are some good links between academia and the industry but there is still a lot more that could be done. Proper coordination and cooperation between these two spheres of activity to build strong foundations for the logistics sector is a global challenge.

Q: Is there high staff employee turnover in the logistics sector in Asia?

A: Employee turnover is quite high at the junior level. This can be attributed to the mindset that prevails: “Logistics is an industry we end up in because we have few options, and even if I lose my job in this company, I can easily find a similar-paying dreary job in another.”

However, in the middle and senior levels, owing to the current economic scenario – retrenchments, downsizing and non-availability of good alternatives on the market – the turnover is appreciably less in comparison.

Q: Is there an adequate supply of skilled workers to meet logistics industry demands in Asia?

A: Research undertaken by institutes and human resources firms seems to imply this and apart from countries like Singapore and Hong Kong, this would be true for all others, in my opinion. There are employees in supply chain management positions, with little or no relevant academic background or experience.

I seldom come across a purchasing manager, for instance, with a formal qualification in SCM and logistics. Many recruits are ill-equipped with the necessary skill-sets for mid-level executive positions, and often need to learn from scratch whileon the job.

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‘STRONG CUSTOMER SERVICE ORIENTATION IS ESSENTIAL’

TONY HOTINE, regional manager Asia Pacific, Maersk Logistics, on what makes for a successful career in thelogistics industry.

Q: Could you describe your human resource philosophy at Maersk?

A: Maersk Logistics is an equalopportunity employer that focuses on individual merits, and does not tolerate discrimination of any kind. We reap the benefits of diversity in our 1,800- strong workforce. In addition to employing people from 12 different nationalities, we are also concerned with having a good balance between male and female employees. At the time of writing, this ratio is 3:2.

As far as the classification of the workforce, is concerned, there are, generally speaking, administrative, management, customer service/operations, sales, and specialist staff categories. Within each of these teams, we identify “individual contributors”, “leaders of others”, and “leaders of leaders”, so that we can tailor individual development accordingly.

Q: What is your approach to recruitment and training?

A: All employees joining our logistics businesses go through a stringent recruitment process to ensure that there is a good match between their skills and capabilities on the one hand and the requirements of the role on the other. Indeed, we invest heavily in human resources to create an organization that canwin in the marketplace

We work with a number of institutions. In Australia, for example, we have developed a collaborative partnership withthe University of Queensland Business School. Through this, andother initiatives, we are making asignificant contribution to changingthe perception of the transport andlogistics industry by developinginnovative recruitment techniquesand improved career paths to meetthe skills needs of our industry.

Maersk Logistics has also been recognized as a preferred employer. In mid-2008, our Australia office won the Queensland Transport & Logistics Industry Futures Award, presented by the Supply Chain & Logistics Association of Australia.

This award recognizes Maersk Logistics Australia as having the best proven record in providing people with an entry to, and pathway in, the Transport, Supply Chain & Logistics industries, and encompasses education and training, flexible work practices, workforce development, and support in career progression.

Q: What types of training and development are available to staff ?

A: Maersk Logistics has a number of in-house talent training and developmental programs for new and current employees. One such initiative is the management trainee program, Maersk International Shipping Education (MISE), whichwas initiated in 1993.

This is aimed at developing the group into a truly international enterprise with international employees educated and trained within the organization. Few other companies offer such an extensive program. MISE is ranked “World Class” by the International Consortium for Executive Development and Research, a premier source for the professional development of management.

With MISE, we have been able to identify and develop many talented individuals and fast-track their careers within the group. Our employees are also rotated and given opportunities to work in different parts of the company, and often also given international exposure.

Q: What skills are needed for a successful career in logistics?

A: Logistics is a service industry, which is therefore a “people business”. To excel in the service sector, strong customer service orientation is essential.

Of course, logistics industry experience is also beneficial in understanding the dynamics of the supply chain and how it impacts our customers’ businesses. In addition, resourcefulness, initiative, and the ability to work in a dynamic environment would also standyou in good stead.

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A STRATEGIC IMPERATIVE

Establishing long-term strategic learning and development priorities is critical for logistics companies to be able to meet current and future business challenges.By AMANDA RASMUSSEN.

An effective organization needs a knowledgeable, skilled and motivated workforce to be competitive. This fact emphasizes the need for strategic learning and development across the logistics industry. Strategic positioning of learning and development encourages alignment of the company’s business strategy with its competency needs and resources required for achieving competitive advantage.

Business challenges demand that companies assess their market position first and then determine the skills and knowledge needed for competitive advantage. To meet current and future business challenges, strategic learning and development should encompass a wide range of learning strategies, from skills training for specific tasks and knowledge sharing for talent engagement to competency development for business and career progress.

It is not unusual for “learning” to be considered the same as “development”; however development is much more. Whilethe intent of learning is to provide the required skills to carry outspecific tasks, development is acombination of formal andnon-formal learning strategies thathelp employees attain theirpotential competence to performtheir roles and continue to progressin their careers in the long term.

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CLOSING GAPS
In the “2008 Asia Pacific 3PL Study on Training and Development” published by eyefortransport and RSI, respondents were asked to rank (1 to 3) the importance and their ability of each listed knowledge or skill area.

The top five gaps identified were in customer business understanding, customer service skills, integrated logistics solutions, supply chain solution design, and logistics and supply chain. These perceived gaps can help companies understand potential areas of investment inlearning and development.

ROLE OF HR
A shared responsibility between the company, the employee and the immediate manager increases the effectiveness of learning and development strategies and the subsequent investment. From the company’s side, the Human Resource department plays an important facilitating role in ensuring that the strategic learning and development plans are successfully drafted and implemented for the employee and the company, alike, to reap the benefi ts. It is the role of HR to:

• Articulate a clear learning and developmentframework aligned with the strategic intentof the business, matchingbusiness goals with strategicdirection
• Define talent resources in termsof competencies required to meetcurrent and potential businessneeds
• Develop and establish trainingplans linked to respective rolesand competencies
• Support managers and employeesin planning and implementinglearning strategies
• Coach employees and mangerson skills required for dialog andfeedback
• Establish processes to monitorprogress and follow up

For effective development within the industry, the primary focus should be on engaging employees in a process that best enhances their competencies and learning thus making use of experience in the industry and improving methodologies. For both the employee and the company, the benefits of strategic learning and development can be achieved by following a step-by-step implementation process that determines the strategic value of development outcomes.

TAKING STEPS
The following 3-Step Process can be used as framework for delivering effective learning and development:

Step 1: Conduct a needs analysis
Strategic learning imperatives can be aligned with business goals by gaining an in-depth insight into the company’s business environment. Differences in industry, business goals, and talent resources influence the selection of strategic learning imperatives that define the competency needs to meet businessobjectives.

As employees progress in their careers, their role expectations and competency requirements change. In every new role, the employee would face new challenges and demands, exposing competency strengths and gaps required to perform the role effectively.

Step 2: Select appropriate resources
Choosing the right earning and development resources is typically done through joint discussions between the immediate manager and employee. Use the training plan to stimulate ideas to identify suitable courses that are relevant to the role and aid in closing the competency gaps. This would involve matching the employee’s competency development need for the role, the next potential career move and the employee’s learning style.

Every person has his or her own individual learning styles and may differ depending on gender, age or culture. A learning style can be defined as the individual’s natural and preferred way to treat information and knowledge in situations influencing his decisions and behaviors.

Step 3: Develop measurable learning outcomes
The employee and immediate manager share joint responsibility in initiating the implementation of the development plan. Potential role changes or lateral assignments beneficial to both the business and employee career growth need to be jointly identified. This would include enabling the learning by removing any organizational barriers to learning opportunities and providing ongoing mentoring to reinforce the employee’s development.

BUSINESS BENEFITS
For companies within the logistics industry, the quality of employees can make or break the business. Essentially, the competence and utilization of their knowledge contributes to the strategic value add that the organization uses to engage customers. And the employee benefits from being directly involved in development planning and is better equipped to face the competency demands and challenges in current and potential roles.

When companies invest millions of dollars in research and development of new products and markets, they hinge the success of these initiatives on an engaged, well trained workforce. Strategic learning and development ensures that the company reaps direct business benefits from its people investments since the learning and development priorities are focused on competencies required to not just meet the business objectives, but also to prepare the organization for future business challenges.

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