An Presentation on the Challenges and future trends of Logistics Industry in GCC . It also discusses about challenges and trends of Human Capital in Logistics Industry and its mitigation measures.

1. FORECASTING THE SUPPLY AND DEMAND OF THE
LOGISTICS HUMAN CAPITAL
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2. PRESENTATION OUTLINE
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3. GLOBAL LOGISTICS SCENARIO - TRENDS
Source : Cerasis.com

4. GLOBAL LOGISTICS AND SUPPLY CHAIN ENABLERS
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Global treaties.
Entrepreneurship.
Industrial development.
Commerciality.
Technology.
Geopolitical scenarios.

5. LOGISTICS AND SUPPLY CHAIN IN THE GCC- FOCUS ON GROWTH
An important trans-shipment and multimodal hub.
An ambition to move away from being a trans-shipment
hub to a value added logistics hub.
Government Investments on logistics infrastructure.
The GCC Logistics Industry has witnessed 10% cumulative
annual growth rate since 2008.
Building capabilities and opening up to the rest of the
world.
Far from integration & co-ordination of multimodal networks.
Different stages of development in each country making it difficult
to integrator.
Difficult to attract capabilities to the Industry given it’s image and
lack of clear regulations.
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6. LOGISTICS PARADIGM CHANGE IN THE GCC
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State owned enterprises to lead and
inspire by Investing in Mega Projects
High Government spending on
Infrastructure
Public sector excellence in service
and operations
Trade and Transportation hub
Tourism and MICE prime
destination
Knowledge economy based on
education, Media Information,
Technology and Financial
sectors
High quality Infrastructure
Pro Business regulatory policies
High Skilled labour
Free Zones & Economic clusters
FDI Growth
Strategic Location
Government :
A Key Driver
Focus on core
Economic Factors
Attractive Investment
Environment

7. FUTURE TREND OF LOGISTICS INDUSTRY- CAPABILITIES REQUIRED
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8. Increasing pressure of fuel prices.
Decreasing rates of transport and
shipment prices.
Environmental standards and
requirements
Economic outlook
GCC Logistics Performance Index Results
Societal view of logistics
CHALLENGES IN THE LOGISTICS SECTOR
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9. Increases of over 50% seen across
the GCC due to subsidy reductions
and adjustments
Fuel represents approx. 30% of
operating costs of transport
operations
Increased operating cost driving
necessity for increased efficiency
and cost reductions
Upward pressure on rates and
consumer pricing
INCREASING PRESSURES OF FUEL PRICES
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10. DECREASING RATES OF TRANSPORT AND SHIPMENT PRICES
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11. Academic Skills :
Project Management
Technical Understanding
Understanding of Cross Cultural/ Global
Issues
Complex Problem Solving Skills
Understanding of Legal issues
Information technology
Global economy
REQUIRED SKILLS IN SCM
Soft Skills :
Ability to Communicate Effectively
Ability to Logically organise Thoughts/ Ideas
Leadership
Desire to Learn (Lifelong Learning)
Ability to Facilitate
Proactivnes.
Entrprneurship.
Due to the new global trends in logistics and supply chain new skills have
become necessary:
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12. Operation
Supply
Demand
Logistics
Integration
(Commercial
skills)
Production and Inventory control
Master Scheduler
Demand Planner
Warehouse Operations Planner
Packaging Engineering
Logistician
Traffic, Dispatcher,
Transportation Planning
Warehouse Operation Planner
Packaging Engineering
Driver
Clerk
Material Handler
Program management
Product development
Customer support
Supply Chain Executive
Supply Chain Technical
Buyer
Procurement Analysts
Procurement Agents
Supply Chain Planning
Forecaster
Master Scheduler
Schedule Program Manager
SupportGlobal Trade Control
Program Management
Supply Chain Security
SPECIFICS SKILL SETS REQUIRED FOR LOGISTICS/SCM OPERATIONS
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13. An opportunity to increase the levels of
trained nationals with the vocational skills
that form the bulk of logistics
employment.
Rise awareness of the importance and
potential for transport and logistics to
provide a bright career.
Change the image of LSC from the
traditional style to the new
technologically advanced global trade
concept.
Entrepreneurship- Logistics is based on
bright business and industrial ideas that
are enabled by policies and procedures.
DEVELOPMENT OPPORTUNITIES IN LSC
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14. Expo 2020 will create more than
277,000 to 300,000 job opportunities
within 2013 to 2021.
40% of the required enters the market
each year
The gap in the demand and the forecast
promises present good employment
opportunities
An increasing number of institutions
offer related courses
EMPLOYMENT GROWTH IN GCC
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79
77
71
63
54
54
53
37
28
63
50
75
74
62
33
70
21
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Health care
Real Estate
Retail
Hospitality
Construction
Banking
Logistics
Oil & Gas
Telecom & IT
2015
2014
Employment Growth by Sector
Net percentage of firms increasing headcount
Source: Gulf Talent Survey of HR Managers

15. Human capital forms one of the key pillars of the
logistics industry.
It is categorised by three conditions:
The highest level of employment is at the bottom of
the transport management pyramid.
It is becoming increasingly more sophisticated with a
changed emphasis from manual systems and processes
to modern sophisticated electronic data and transport
management systems.
This increase in sophistication and the requirement
for qualified capabilities will shift some of the jobs from
the bottom of the pyramid to the top half.
This trend is set to accelerate, particularly
in Oman and the Middle East region, where standards
are still far below international best practice.
HUMAN CAPITAL IN LOGISTICS INDUSTRY
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Operation & Support
(Foremen, Supervisor, etc.)
Engineering /SME
Management
(GM/Manager)
Executive
(CEO/
Director)

16. Shortage of trained nationals with the
vocational skills that form the bulk of logistics
employment.
Lack of awareness of the importance and
potential for transport and logistics to provide a
worthwhile career.
A perception that transport is an unworthy
Industry to work, resulting in roles being filled by
expatriates.
A lack of consistent, credible training and
logistics standards.
Logistics as an independent sector is at it’s early
years and a lot should be done to regulates and
make it attractive to the national workforce.
SKILL GAP
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17. BRIDGING THE SKILL GAP
One of the primary aims of economic diversification is to create new
jobs in the private sector.
Governments understand that investing in skills, education and
training is critical for developing a sustainable local workforce.
The skills gap is getting bigger due to rapid changes in technology and
ways of doing business.
The following is recommended to close the gap:
Collaboration between the governments, private sector and the
society.
Aligning academic curricula with the private sector needs.
Developing the workforce through hands on training
Providing Information about the available careers.
Encouraging a culture of Innovation and Entrepreneurship.
Setting clear regulations and standards for the logistics and supply
chain industry.
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18. ENABLERS TO ATTRACT LOCAL WORKFORCE TO LOGISTICS
There is an urgent need to get more GCC nationals working in
the private sector. The old model of employing nationals in
high-paying government jobs is no longer sustainable.
In the UAE and Qatar, only 1% of the private sector workforce
is made up of nationals, rising to a high of just 18% in Saudi
Arabia.
An opportunity for the Governments to re-skill unemployed
youth to work in a sector that is evolving to become very
advanced.
An opportunity to create SME in the field of logistics and
encourage entrepreneurship.
Prepare and equip students for the workplace before they
become job seekers, ensuring alignment between education,
financial institutions, the private sector and government
authorities.
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