Upskilling strategies are a must for any logistics firm that wants to combat shortages and technical lag. Learn about how you can join Industry 4.0 here.
In an era marked by rapid technological advancements and an ever-changing global market, the supply chain and logistics sector finds itself at a crossroads. Logistics businesses are grappling with two predominant challenges: a shortage of staff (drivers, mechanics etc.) and a lag in adopting emerging technologies. Addressing these issues is paramount for companies wanting to maintain a competitive edge and ensure the seamless functioning of their operations. To help understand these issues and how to potentially overcome them, we’re going to explore upskilling strategies that can empower businesses to support their teams.
The logistics sector is experiencing a shortage of drivers, mechanics, and other roles; a challenge made worse by the increasing demands of e-commerce and global trade. To bridge this gap, businesses must adopt a proactive approach, focusing on both attracting new talent and enhancing the skills of existing staff.
Apprenticeships have always been a driving force for the logistics sector with a survey from Logistics UK finding 68% of respondents to the Logistics UK Industry Survey 2022/23 were interested in taking on apprentices across a variety of logistics roles. This is further supported by the government with their HGV driver apprenticeship funding in 2023.
However, despite this desire and funding, real-world costs have made the initiative ineffective. Many leaders believe that the funding is short of what is required to stay competitive. Sally Gilson, RHA Policy Lead, Skills and Drivers, said:
“This is a missed opportunity to help our industry tackle the shortage of technicians. The underfunding of these courses has had a profound impact on bringing new talent into the industry.
“We acknowledge the increased funding band but realistically it falls short to encourage training providers to run these courses. We also run the risk of current providers leaving the market.
“We urge ministers to reconsider and pledge the £23,000 funding we need.”
Given how recent this funding change is, only time will tell if apprenticeships improve the situation or if other alternatives are required. However, with rising costs, it may seem like a drop in the ocean of what’s required to bring in new talent and fill the gaps in the job market. To combat this, employers will need to find new ways to attract talent be it through job perks, flexibility, or other bonuses.
Addressing shortages for drivers and other logistics roles extends beyond pay. Information can go a long way to helping the next generation of logisticians find their way and initiatives like Generation Logistics are doing just that. This government-supported initiative looks to “find and engage the next generation of logistics talent.”
Generation Logistics covers every area of the supply chain from transportation and warehousing, to customer care and digital technology development and presents information, job roles, and guidance on how prospective candidates can make their way into the logistics industry. Initiatives like this are going to be central to helping firms find new staff.
Along with recruitment and skills training, we’ve seen employment numbers made worse by the slow uptake of digital automation. Colloquially known as Industry 4.0, this is representative of a shift towards digital transformation and a move away from labour as we understand it.
In short, it means adapting systems to automate where possible to improve delivery, maintenance, and management.
To adapt, upskilling existing drivers and staff through comprehensive training programmes is essential. Whether internal or industry-wide, these programmes should encompass not only technical skills but also knowledge of emerging technologies, international trade, customer service, and regulatory compliance. This is especially relevant to areas where Net Zero and green targets are key.
Admittedly, Industry 4.0 is still relatively novel and has led to a technical lag as businesses come to terms with the skills, funds, and tools necessary to update their practices. Where left unchecked, technical lag can hinder operational efficiency, impede scalability, and diminish competitive advantage. To stay ahead of the curve, businesses must invest in digital transformation, embracing solutions such as Artificial Intelligence (AI), automation, the Internet of Things (IoT), and the blockchain.
Upskilling the workforce to proficiently utilise these technologies is crucial to future success. Tailored training sessions, workshops, and online courses can help employees familiarise themselves with new tools and platforms, fostering digital literacy across the organisation.
All of the above points to a need to adapt. However, change can be hard for people and creating the right environment for learning is key to making any initiative work. It is critical to cultivate a learning culture within your organisation to address driver shortages and technical lag.
Whether this is through promotion, funded training courses, encouraging employees to take ownership of their professional development, or even just recognising achievements can foster a sense of empowerment and motivation.
A great way to get the ball rolling is to implement mentorship programmes, where seasoned professionals guide and support less experienced colleagues. This can facilitate knowledge transfer and skill acquisition. Additionally, offering incentives for skill development, such as career progression opportunities and financial rewards, can further incentivise learning.
This will not only allow for more growth for junior employees but also help you retain senior members and avoid costly recruitment drives.
In conclusion, the challenges of shortages for drivers, mechanics, warehouse workers, and office support staff along with technical lag in the supply chain and logistics sector necessitate a strategic and holistic approach to upskilling. By embracing technological advancements, fostering a learning culture, and leveraging opportunities to develop and grow, businesses can support their teams and ensure their continued success in a dynamic and evolving industry.
The integration of upskilling strategies into organisational frameworks is not just a reactive measure to existing challenges but a proactive step towards future-proofing businesses against the uncertainties of tomorrow.
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