The logistics industry, worth over $200 billion, is a vital component of India’s economy and continues to be one of its most important contributors. The sector is also a major contributor in terms of employment, employing around 22 million people, and is expected to grow to 40 million by 2030. However, the availability of skilled workforce is still playing catch up with the rapid growth of the industry. Even at the global level, the skills shortage percentage has only increased since 2019, and if it goes unchecked, then by 2030 there are expected to be over 85 million unfulfilled roles. Let that number just sink in. It is more than the current population of Germany!
Technology and Innovations add to the skills gap
While the industry is dealing with the unavailability of a skilled workforce, the sector continues to evolve, driven by the adoption of new processes, technological advancements, globalisation, green economy and other major shifts. Internet of Things (IoT), robotics and automation, artificial intelligence (AI), and blockchain are changing the face of the industry by speeding up operations and improving accuracy. In addition, consumer sentiment has been a big factor in the onset of the green logistics trend. The need for companies to buck up on their sustainability game has never been stronger.
Given the pace of advancement, the industry demands a workforce that is not only skilled but also adaptable to the constant changes and is willing to engage in reskilling, upskilling and even cross-skilling.
Upskilling the existing workforce and attracting fresh talent
Through training and development that provides learning and upskilling opportunities, the industry is trying to effectively address the demands for both the existing workforce as well as fresh talent. It is also helping to change the image of the logistics and transport industry from the traditional male bastion to an inclusive one ensuring a larger hiring pool. Logistics companies are now embracing digital upskilling that tends to be more retentive, engaging, impactful, and appealing to people of all ages and genders.
Understanding the skilled workforce
It is important to recognise the diversity of the workforce in the logistics industry. On one hand, we have the millennial and gen Z workers, who account for at least 64 per cent of the workforce. On the other hand, not everyone in the logistics workforce has a formal education background.
A warehouse picker, for example, is not mandated to have a formal educational background. While they may be proficient in the use of their mobile devices, they are often limited by their language proficiency or limited vocabulary or even their choice of vernacular language. Finding a way to on-board and up-skill this segment of the workforce using mobile devices and using local languages is key.
At 21CC Education, we believe that everyone has the potential to learn new skills and make valuable contributions to the economy while also reaping benefits for themselves. Our skilling methods help the workforce acquire industry-specific, role-relevant skills using digital programmes, games and hands-on training. Our work ranges from upskilling the current workforce with knowledge about the industry and available career paths, to providing warehouse training to women with limited educational backgrounds, to designing logistics certificate courses for students to gain a foothold in the industry. In the end, upskilling programmes are a win-win for both the companies and the workforce, to ensure everyone gets their fair share of growth and advancement.
