Optimising Operations and Talent in the Logistics Industry

Part one of this article explores the key challenges faced by logistics leaders. 

Areas for Change:

1. Cost mitigation with a focus on value 

“Focusing less on cost and focusing more on value,” Aaron Scott explained. “Chase the value, not the cost. Cost is something people can chase right down the line, but this can be value eroding. If you chase the value, the cost is just a function of the value as opposed to everything being a function of cost - it is a much more successful recipe.” 

Maturing technology carefully deployed was also discussed as an opportunity to help mitigate spiralling costs. “If we could deploy modular technology – i.e. ‘cobots’ or other small, typically relocatable assets – that can take cost and hours out of the warehouse, has never been more in demand than it is today, and I believe this will accelerate in future years. The most important element is how this technology is integrated, and this is where our company has succeeded thanks to our expertise and experience in effective tech deployments”, added Gavin Williams. 

2. The convenience model 

Many people can walk or physically buy most items within about 500 yards of a convenience shop, or they can order online and have it delivered the next day.

At some point, a sustainable convenience model must be established, which could take one of two forms: maintaining high flexibility in the labour force to continue the same level of convenience or making the convenience model more efficient with an environmentally friendly logistics service. 

Logistics Talent Challenges 

1. Mobility of available talent 

Aaron Scott remarked on the significant lack of mobility within the industry, stating: "One crucial aspect I must highlight is the significant lack of mobility within the industry. I believe people in our sector today are unfortunately less willing to travel for their job, despite the numerous opportunities available. This reluctance is incredibly frustrating because not only do individuals miss out on the personal value gained from being geographically mobile, but businesses also lose out on the advantages of having a mobilised workforce. This poses a challenging restriction when searching for candidates with the right experience, skills, and competencies, compounded by their limited willingness to relocate geographically.

To build a robust leadership team, it's essential to encourage mobility across different modes of transport. For instance, transitioning someone from air freight to contract logistics (CL) or vice versa, and enabling geographical movement, brings immense benefits. However, the current unwillingness to move is stifling progress." 

2. Demand for skills 

Finding individuals with the right skills and experience is a priority. Aaron Scott highlighted the efforts made through various apprenticeship and graduate entry schemes: “We work exceptionally hard with apprenticeship schemes, graduate entry schemes, trying to get people in and provide career ladders for people within our organisation. But we also need to be able to bring in talent at other levels”. 

Dan Myers also spoke of education programmes designed to identify and retain talent: “Our biggest challenge is recruiting enough good people to fill and support the business’ growth and the demands we have. A couple of years ago, we introduced a degree apprenticeship to recruit at 18, providing practical experience and skills essential for our industry. This on-the-job training immerses them in the business, helping them understand our systems and navigate effectively, leading to the best results.” 

Gavin Williams emphasised the importance of tech-savvy employees who can adapt to technology and believes that better awareness and promotion of the logistics industry to younger generations would be beneficial: “Increasingly, the sector needs employees at all levels to be tech savvy and capable of learning how to adaptably use it, is really important.

Generally, people need to have high energy, enthusiasm and passion for the job, and from experience, if they have this, they can overcome any challenge presented to them. Making sure the best talent is attracted to the logistics industry, whilst being able to balance operational requirements with flexible hybrid working, is really important, and naturally expected”. 

The logistics sector is fundamentally people-oriented and provides substantial opportunities to gain insights into various industries. 

Talent with the capabilities and expertise to deliver on technology is industry critical. Leaders in retail businesses are particularly investing in the future vision to support their transformative commercial strategies. James Wroath commented that data operations will bring opportunities for talent to progress in the logistics industry: “Any changes in operating models first requires a shift in mindset across the industry in order to effectively balance tech, talent, customers and commercial”. 

Odgers Berndtson's Procurement & Supply Chain Practice is dedicated to partnering with businesses to manage these complexities. By leveraging their expertise, companies can attract, retain, and develop the talent needed to drive innovation and sustainability in the logistics sector. 

___________________________________________________________ 

 
Get in touch. Follow the links below to discover more, or contact our dedicated leadership experts from your local Odgers Berndtson office here.