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Upcoming EventLogistics Executive is an official partner of the Asia Manufacturing Strategies Summit 2012. This exclusive event will take place in the Ritz-Carlton Hotel, Millenia, Singapore on 15th – 16th October 2012 and will provide the opportunity to discover the latest news and the best practices for optimizing your manufacturing and supply chain operations. The event is packed full of real life case studies, allowing you to benchmark your business against ‘best in class’ and ensure that you have the tools you need to form a coherent and logical strategy. To register please visit www.asiamanufacturingsummit.com/register.

Logistics Executive Global News

Logistics Executive 6th Annual Employment Market Survey Report gets underway.Logistics Executive Now in it’s sixth year, the 2012-2013 Employment Market Survey Report will be release mid-October and will be available for download from our website - www.logisticsexecutive.com.The 2012-2013 Employment Market Report surveys go out of over 40,000 supply chain and logistics professional globally and looks at employment trends in the sector including talent retention, growth and salary trends. The report is covered in a number of high profile publications including Supply Chain Review.To register for a free copy go to www.logisticsexecutive.com.

In emerging and developing markets, logistics activities involve a range of opportunities and challenges:

• Opportunities - revolve around the fact that the emerging markets are experiencing rapid economic growth and the resulting increase in trade and commerce drives increasing demand for logistics services.

• Challenges - are many and varied, with the top three consistently being infrastructure limitations, bureaucratic regulatory procedures and shortage of skilled experienced logistics professionals.

Let’s explore Infrastructure Developments and Skills Shortages in three specific markets – China, India and Vietnam:

IN THE DEVELOPING LOGISTICS SECTORS OF CHINA, INDIA AND VIETNAM

NEWS & EVENTS

EXPLORING TALENT SHORTAGES

Poor in!astructure, rapid growth and unexpected cost blow-outs are just some of the cha#enges in these emerging markets, but its the slow developing talent pool that is of the greatest concern for the Supply Chain sector writes Mark Mi#ar, Logis-tics Executive Group.

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Infrastructure DevelopmentsChina ha s made ma ss ive

progress in t ranspor tat ion infrastructure development, accelerated a massive boost from the four trillion RMB stimulus package initiated in late 2009. The highway system now has over 75,000 km of expressways, ne w a i rpor t s a re be ing constructed at the average rate of one new airport every five weeks, inland water ways are being developed and expanded, and container port infrastructure de ve lopments cont inue unabated, with Shanghai port handling over 31 million twenty foot containers (TEU) in 2011 Fur thermore , the huge development of the high-speed pa ssenger ra i l network i s expected to free up some of the

existing rail infrastructure to be converted for cargo use in the future, including containerized rail freight.

In India, the transportation infrastructure is nowhere near as developed as in China. The level of investment and support has not been enough to keep up with modern logistics requirements, r e su l t ing in l imi ted road infrastructure and congested container ports, leading to huge de lays and ine v i tab le inefficiencies - costing time and money. A Washington Post article quoted experts as saying that “If urgent steps are not taken, by 2020 the cost of waste and delays will increase from $45 billion annua l l y to $ 140 bi l l ion . ” Several years ago, India took the in i t i a t i ve to a l low pr iva te

companies to operate on the state railway systems. One major player, Arshiya, is investing heavily in the rail sector in a bid to impro ve Ind ia ’s o vera l l logistics efficiency, including investments of over 1.5 billion rupees in order to double their rail capacity.

Vietnam - with the support of foreign investment and through several public-private-partnership (PPP) projects, Vietnam has been able to make good progress in recent years on infrastructure developments, particularly in southern Vietnam. One example is Cai Mep port — the large, impressive, modern container terminal development south of Ho Chi Minh City. Together with the huge industrial zones and logistics parks built in Binh

Duong province, north of the city, there are now much better options available for logistics activities. However there are still opportunities to further improve the overall planning and coord inat ion o f the logistics infrastructure projects - despite the Cai Mep port container terminals being open, there i s l imi ted h ighway connectivity to and from the port. There is also a need to develop multi modal ground transportation networks and corridors – specifically road and rail infrastructure – to connect the new industrial zones and logistics parks in Binh Duong province to the container ports - both the city terminals and

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the new Cai Mep facilities.Talent ShortagesThe sk i l l s shor ta ge i s one

logistics challenge common to China, India and Vietnam – indeed throughout all emerging markets. As their economies are rapidly expanding, then logistics activity increases, which in turn drives demand for trained, skilled and experienced professionals.

One of the key findings of the most recent Global Chief Supply Chain Officer Report was that “talent acquisition and leadership de ve lopment” represents a significant challenge in supply chain management, with 35% of respondents listing it as one of their top challenges and a further 56% a g ree ing that i t i s an important challenge.

In China the diff iculty of recruiting skilled professionals is exacerbated because of its scale and also due to China’s expanding role in global supply chains, leading to increasing demand for skilled logisticians. At the same t ime , the sheer s i ze o f the population gives it a larger pool of experienced workers than in other countries.

India’s leadership role in global commerce has developed in areas such as telecommunications and business process outsourcing. The impact for supp l y cha in management is a smaller pool of

experienced talent to fil l the expanding demand in the logistics sector. As Ind ia p l ans to modernize many sectors , in particular the retail trade, there will be further increasing demand for experienced logisticians.

In Vietnam, the majority of the popu la t ion a re young , we l l educated, with English widely spoken. Thus there is a large pool of potential workers for the logistics sector. However, as in many other countries, there are not enough young people choosing the logistics sector as their career path. Therefore in Vietnam, we are also seeing skills shortages.

ConclusionThe logistics sectors in China,

India and Vietnam have improved significantly during the last five years, and as they continue to do so, we can expect to see a gradual reduction in the logistics costs as percentage of GDP. As industry l eaders , we ha ve co l l ec t i ve responsibility to encourage the younger generation to choose a career in logistics, and within our businesses we must actively engage on talent attraction and retention programs. In line with maturing logistics sectors in developing and emerging markets, we will also see an increa se in the l e ve l o f outsourcing, which is good news for the 3PL logistics ser vice providers.

AUTHOR PROFILE: MARK MILLAR 马克

Mark Millar leverages 25 years global business experience to develop and deliver enlightening and informative Keynote Presentations and to provide Consulting, Education and Advisory services - creating value for clients by empowering superior performance in their supply chain ecosystems.

Acknowledged as an industry thought leader, Mark has been engaged by clients as Keynote Speaker, Moderator or Conference Chairman at more than 230 events in 20 countries. Recognised by the Global Institute of Logistics as “One of the most Progressive People in World Logistics”, Mark serves as a Director of Logistics Executive: markm@logisticsexecutive.com