mark currie 14-06-2017 - warehouse technology group currie 14-06...the impact on logistics of a...
TRANSCRIPT
The impact on logistics of a changing economic and business climate – the key driving forces behind
automation decisionsMark Currie
Chief Executive and WTG Joint Chair
THE UK’S ONLY NATIONAL LOGISTICS SKILLS NETWORK
Welcome10th WTG live event
THE UK’S ONLY NATIONAL LOGISTICS SKILLS NETWORK
Mankind vs Machineor
THE UK’S ONLY NATIONAL LOGISTICS SKILLS NETWORK
Skills shortages• 35% of senior logistics decision makers
think the skills shortage is the most important issue facing the sector
• 43.9% expect to increase headcount over the next 6 mthsBarclays UK Logistics Confidence Index
THE UK’S ONLY NATIONAL LOGISTICS SKILLS NETWORK
Tight labour market• Full employment• Rising labour costs• Apprenticeship levy costs• Poor image of the sector
as a career destination
THE UK’S ONLY NATIONAL LOGISTICS SKILLS NETWORK
Shed shortage• No Grade A buildings of 400,000 sq. ft. in
the North WestCBRE
THE UK’S ONLY NATIONAL LOGISTICS SKILLS NETWORK
The new retail• 19.5% year-on-year growth in internet
shopping to 15.5% of all retail spendingONS Retail Sales Bulletin
• M&S and Debenhams closing stores
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%ofretailsales
Internetretailsalesas%ofallsales2012- 2016
THE UK’S ONLY NATIONAL LOGISTICS SKILLS NETWORK
New challenges• Consumer expectation for fast delivery
and the importance of accurate picking• Can machines deliver?
THE UK’S ONLY NATIONAL LOGISTICS SKILLS NETWORK
Uncertain future• Brexit uncertainty and the future supply
of migrant labour• Hung parliament
THE UK’S ONLY NATIONAL LOGISTICS SKILLS NETWORK
Adverse economic forces• Devaluation• Inflation – interest rate rises • Economic slowdown• Trade barriers
THE UK’S ONLY NATIONAL LOGISTICS SKILLS NETWORK
The impact on logistics• 3 times as much warehousing space is
required for online fulfilment • 20m sq ft of space built in 2016 • 9m sq ft built in preceding 5 years • 58% taken by the retail sector
THE UK’S ONLY NATIONAL LOGISTICS SKILLS NETWORK
The impact on logistics• Automation requires higher skills• Reverse logistics challenge of returns
THE UK’S ONLY NATIONAL LOGISTICS SKILLS NETWORK
Future challenges• Inventory reduction• Multiple stocking locations• Minimising waste from returns• Finding skilled labour• Securing future talent• The right machines for the right job
The National Logistics Academy