Author: Patrick Tan Copyrighted Published Date: 15th Sept 2016

Training of Supply Chain Professionals ever more important in today’s competitive world As the year winds down, it is always helpful to look back, review and continue to refine business strategies. On the whole, 2016 has been challenging, highlighted by the South China Sea arbitration, Brexit, prolonged ISIS problem and the uncertainty of the US presidential election dampening the global economy. Despite a gloomy outlook, companies in the logistics and transportation (T&L) sector are realising that uncertainty itself cannot be a reason for mothballing growth plans. They must seek new strategies in their globalization drive and be ahead of competition. This article will discuss some of the industry challenges and bring attention to the need for training supply chain professionals. Rise in M&A activities A notable trend being seen in the T&L sector is an increase in mergers and acquisitions (M&A) in recent years. According to a report by PwC, there were over 50 global transportation and logistics M&A deals announced in Q2 2016 – the third highest quarter by aggregate value of the last three years. Mega-deals in the first half of the year include the purchase of Toll by Japan Post, TNT by FedEx, and APL by CMA CGM. As with any merger, companies have to integrate resources and familiarise their personnel with the new system, process and culture. To be able to do this, training must be provided to the staff. The quicker the integration is completed, the sooner the intended benefits of the M&A will be realized. Staff turnover and re-deployment When businesses are down, companies often resort to downsizing manpower and operations. To reduce the cost of re-employment when business picks up later on, many companies are now choosing job rotation or re-assignment for their employees over layoffs. Regardless whether a company chooses to retain existing employees or hire new ones, the need for training is unavoidable. Quick deployment and quality alignment Logistics companies also become more agile in dealing with overseas investments and have a lower appetite for risk during times of economic slowdown. They also move toward lighter, mobile assets and Web-based solutions for managing the warehouse and freight. These factors further emphasize the need for training employees with a new set of skills and knowledge that allow them to be readily deployable. Inevitably, pressure falls on logistics trainers to make their training materials and methods up-to-date, effective and readily accessible. Trainers must ensure that the personnel are equipped with the right skills which are up to company standards – and must do so in a short timeframe. Singapore workforce In Singapore, the topic of increasing workforce productivity has received so much attention that the government, under the Ministry of Manpower, created the Workforce Development Agency (WDA) to focus on the employability of its citizens through training and skills upgrading. A national credentialing

Author: Patrick Tan Copyrighted Published Date: 15th Sept 2016

system called Workforce Skills Qualifications (WSQ) was also set up to train, develop, assess and recognise individuals for the key competencies that companies look for in potential employees. On a separate but related topic, adult learning (andragogy) is getting traction in recent years. Many countries are extending retirement ages and encouraging mothers and retirees back to the workforce. With Singapore’s population bringing about an ageing workforce, this scenario is only going to become more mainstream. Singapore’s Supply Chain and Logistics Academy (SCALA) has set up initiatives and develop The Logistics Professsional Conversion Programme. Launched in June, this is a Place and Train programme to equip trainees with practical logistics and supply chain skills. This support the development of manpower and talent needs from other unrelated industry into the logistics sector. Learning management system Training logistics professionals has come a long way. There are even learning management systems (LMS) readily available as a third-party platform (e.g. www.academy-world.com) that companies can deploy as part of their in-house application systems in addition to traditional warehouse management system, freight management system, etc. LMS is highly affordable but should not be undermined in any way. It is an effective and responsive way for trainers to deliver and manage their learning materials, as well as monitor participation and assess performance among trainees/employees. Parting thought: Workers are essentially assets to a company and should therefore be treated as human capital. The more that is invested in them, the more that can be expected from them in terms of performance, which can give the company its competitive edge. About the author Patrick Tan is the Lead Consultant and Group IT and Innovation Director for Pacific Integrated Logistics Pte Ltd (PIL). He has more than 20 years of logistics and transportation experience in MNCs and Singapore SMEs. Tan is also an ACTA trainer (Advanced Certificate in Training and Assessment) certified by WDA Singapore.