Back to school for Indian logisticians
India’s logistics industry is growing rapidly and the potential for the industry is huge. However, inadequate manpower is the biggest pain in its growth story. Though late, the industry has realized the need to equip the manpower with right training and education and they are doing it in collaboration with academia and industry organization. Jasleen Kaur ...
Last year, Safeducate, a supply chain and logistics skilling firm and a part of Safexpress Group, partnered with Tata institute of Social Sciences (TISS) to launch nationwide initiative to skill India’s logistics sector. The aim was to create skilled workforce in the manpower intensive supply chain and logistics industry. With this tie up, Safeducate became the Skill Knowledge Partner (SKP) of TISS. Divya Jain, CEO, Safeducate said, “Safeducate has been in the field of training and skilling for over seven years now. This partnership with one of India’s foremost education center will help us get supply chain education to a coveted position, as well as create courses that are not just market driven but also aspirational for students. We look forward to a brighter career for aspirants in this field by way of a robust vocational education system.” Another example comes from Mumbai University. It introduced a new degree course in trade and transport last year. It is for the first time in India that any university is offering a degree course in this discipline. The course covers transport by road, seaways and airways. Similarly, JBS Academy recently conducted a two-month comprehensive training programme, comprising of three certificate programmes – in freight forwarding, in custom clearance, and, skill sets for a better you. In addition, The Council of Supply Chain Management Professionals is planning to offer certificate programmes to people looking at a career in supply chain management. It recently opened a branch in Mumbai which would develop educational and training programmes, host conference, workshops and create networking opportunities to meet the needs of supply chain management community. These kinds of initiatives have brought a ray of hope in the Indian logistics industry that the sector is working hard to enhance the talent. However, there is still an acute shortage of manpower. At management and mid-tier levels, the logistical sector in India suffers from lack of leadership, disjointed skills and positions, and a lack of process-driven systems.
What the education system offers? The problem starts with a notion that logistics and supply chain management is relatively a new field of study in India and people are still not aware of the possibilities in this sector and the training available to them. But now, educational institutions are catching up with the realities on the ground and they are are coming up with requisite courses with standardized curriculum. Samir K Srivastava, Area Chairman (Operations Management), Indian Institute of Management (IIM), Lucknow, said, “There are a few institutes offering degrees/courses in this sector and awarding certificates/degrees/diplomas but generally it is not a full-fledged area in most institutes of national reckoning. Industry and academic estimates put SCM spend in India at approximately 13 percent of GDP. The sector is likely to evolve as demand-supply networks, with shared technology and systems, extended decision rights and non-territorial services. So, education in the context of logistics sector needs major evaluation and redesign.” At IIM Lucknow, they touch upon logistics in the supply chain management core and elective courses. “Perhaps the coverage needs to be deeper and expansive. I am not aware of student enrolment at large. At IIM Lucknow, around 70-80 students opt for ‘Advance Course in Logistics and Supply Chain Management’ every year,” he added. Logistics education is still in its infancy in India, averred Samir J Shah, Managing Director, JBS Group of Companies. “The need for logistics training is slowly gaining acceptance propelled by need and the ever-changing role of logisticians. However, the same is still in its infancy and a long journey has to be travelled. There are a few universities who have started offering programmes in port management.” A few MBA colleges are also offering PG Diploma or Certificate programmes in various segments in logistics like custom clearance, freight forwarding, warehousing, retail management. Naming few institutes like CII Institute of Logistics in Chennai, Garware Institute and Narottam Morarjee Institute of Shipping Management in Mumbai, Petroleum University in North India, which offer short-term and long-term programmes, Shah said that the number of people who undergo short term programmes in these institutions could easily be around 100,000 per year, and around 500 people undergo full-time programmes annually. Stressing on specialization, Piyush Shah, Faculty, Institute of Supply Chain Management, said, “Logistics education has not yet got professional status and industry is yet to realize fully the importance of education in logistics. Probably, this may be because the industry traditionally used with general overall education rather specialization.” While, Balram Avittathur, Professor, Operations Management, IIM, Calcutta (IIMC) feels that the number of students joining the logistics industry will increase as the industry becomes more organized and key players enter the fray. “A small share of IIM-C students goes to the logistics industry. This may improve as more organized logistics players enter the industry. I believe that the logistics industry in general like the manufacturing industry has not invested in an ambience that attracts talent. Consulting is a career that attracts lot of IIM-C students owing to the ambience, opportunities and remuneration that this sector provides. It is possible that many of our graduates are contributing to the logistics industry as consultants.” According to Akhil Chandra, Head, Institute of Logistics and Aviation Management, Delhi, the annual intake of students in all the institutes put together is hardly 1,500. “There are very few dedicated logistics institute in India such as Institute of Logistics and Aviation Management, Okhla; CII Institute of Logistics in Chennai; and University of Petroleum and Energy Studies. The demand is more than the supply. There is a dearth of qualified trained manpower in the country,” he added.
Is it on right path? Seeing the current grim situation, there are several questions to be asked: Do institutions impart the right education for logistics industry? Are current sets of degrees and courses relevant to shape up the right talent? Is there an absence of institutionalized skill development environment? Right kind of education is the panacea for all ills afflicting the industry today. Therefore, introspection is required to overcome the crisis the industry has today. Apart from degrees and certifications like MBA and BBA to hone managerial skills, the real need in the industry is for qualified drivers, fork lift handlers, crane handlers, warehouse and transportation staff, shipping staff, and cargo handling staff. “There is absence of institutionalised skill development environment to shape up the right talent. There aren’t many degrees and courses on offer. Further, they are not able to attract the best people, be they students or qualified and experienced instructors. There is also absence of institutionalised initiatives. Government and all concerned stakeholders should try to address this,” suggests Srivastava. Samir Shah mentioned, “A lot of work is being done. Unfortunately, there is no coordination or standards set so efficacy cannot be examined. Something is better than nothing so whatever is happening is for the good of the industry. The Government of India and various state governments have initiatives that will propel logistics education. The need is to incorporate internship models wherein over the entire period of studies, the students are working part time daily or a few days a week in logistic companies. This will result in ready employable graduates once their courses are over. There is a paucity of institutionalized skill development but when I travel around the country and meet so many trainers freelancing as well as associations and institutes offering logistic programmes one feels that it is only a matter of time for great logistic education in India for all levels and segments.” “More focused and specialized programmes are needed to be offered with the active participation from the industry. The higher education needs to be complemented by job oriented secondary education,” Piyush Shah adds. Poor working conditions, inappropriate salary structure and poor or non-existent labour policies have added to the industry’s woes creating the image of the sector that holds few attractions for those seeking employment. In addition, industry players have been incapable of investing in the expansion of personnel. Even the government attention is lacking to address these issues.
The way out The combined efforts of industry stakeholders, government, and the academia can only bring about a transformation as far as manpower issue is concerned. Srivastava said, “Given that India is the fourth largest economy by market volume and one of the fastest growing markets in the world, we need to have the requisite infrastructure and manpower in logistics and supply chain sectors to leverage this to our advantage in the coming future. Warehousing sector, cold chain and other logistics infrastructure are growing rapidly. We therefore need to upgrade, especially with respect to both quality and quantity of manpower in these areas.” Believing that mere academic brilliance is not suffice, the practical training is required to hone the dexterity, Piyush Shah feels, “Universities can fill in this gap with active participation from the industry. Mere academic exposure will not help students to become fit for immediate employment and some hands on training are required for the dusty to gain confidence on the students before employment. Thus, industry-institution interaction needs to be practiced extensively. Hands-on-training should bring into the curriculum. More guest lecturers from the field professionals will add value to the theory that is taught. Fresh students can learn better by doing a lot of small assignments on the field at least on weekly basis.” Samir Shah offers many options to overcome this talent crisis in the sector. “Simple things like HSN; World Geography; Time Zones etc should be taught in all graduation programmes. The media too can help by publishing stories on this subject. Universities in the port cities of Chennai, Mumbai, Gandhidham, Kolkata, Kochi, Tuticorin can easily start diploma or degree courses in port management, shipping, custom clearance and international freight forwarding. Central cities like Hyderabad, Nagpur and Pune could start programmes on warehousing, supply chain, retail management etc. Locational Logistics Associations can tie up with local institutes, universities, ITIs to offer programmes with an internship model and employment guarantee.” Akhil said, “Logistics providers have to be more receptive for doing investments in training centers in collaboration with academic institutions and advise curriculum which is more need-based to their requirements.” After all, growth of the Indian logistics sector depends upon the growth of its soft infrastructure, education and training framework. Educational institutions have started catching up with the realities on the ground and are gradually increasing the number and depth of courses. Industry players, certainly, are also realizing the importance of skilling in the sector. And that, at least, is praiseworthy.
