Logistics

1. Team Name: New Gen Leaders
Team Members Aman Singh Nalinaksh Kashyap Aniket Goswami
SKILLING RURAL INDIA – ADVANTAGES FOR LOGISTICS INDUSTRY

2. Introduction & Overview
Mahindra Logistics Objective
Creation of a technically skilled workforce across
the different solutions offered by Mahindra
Logistics
Objective
Strategy
Creation of an integrated ecosystem consisting of
industry players, Logistics Skill Council, government
educational institutes and labor agencies for skilling
and recruiting of workforce
Business Problem
Lack of proper skills in contractual laborers leads to greater
hiring, training and attrition costs
Logistics Sector Analysis
• Indian economy - $2.6 trillion
• Logistics sector - $ 160 billion
• Largely neglected over the years
Current
status
Trends
and
Future
Growth
Rural
Logistics
• Transport, material handling, storage, packaging and
distribution in rural areas
• Increased significance in logistics
• Logistics cost in India - 13-15% of GDP
• Projection for 2020 - $ 215 billion
Focus
Areas
• Warehousing – Inventory Control, Smart
Packaging, Space Optimization
• Transportation – Network Optimization, Route
Planning
• In-Factory Logistics – Receipt, Stacking, Tracking,
Trolley Loading, Inventory Maintenance

3. Challenges in the Industry
1
2
3
4
5
6
7
2.
• Outdated and irrelevant to the requirements
• Focus on theory & not practical
1.
• Lack of formal training
• Inability to handle new gadgets and instruments
Untrained/Under-trained workforce
Poorly designed course curricula
3.
• Negative perception among youth
• Low work-life balance
Image of the sector
4. Literacy and Education
• Low or poor literacy: Unsuitable for tech specific job
• Limitation in setting up of minimum education criteria by the companies
5. Poor enrolment in the vocational training programs
• Low attendance in training centres
• Uncertainty over job/roles post training
6. Inadequate government spending
• Expenditure on manpower skilling (2017-2018):
• China: Rs. 25864 crores
• India: Rs. 1488 crores
• China ~ 16 times greater expenditure
7. Impending shortage of drivers
• Transportation sector faces acute shortage of drivers
• 2016 shortage: 22%
• Expected shortage by 2022: 50%

4. Sub-Sector/Vertical Roles offered Skill Gap
Cold Chain Solution
Cold Chain Operator, Engr. Specialist, Refrigeration
Maintenance Specialist, Product Handling Specialist, etc.
Very High
Transportation
Commercial Vehicle Operator, Transport Co-Ordinator,
Loader and Unloader, Consignment Assistant, etc.
Medium
Warehouse Management
Warehouse Supervisor, Inventory Clerk, Warehouse Packer,
Forklift Operator, Quality Checker, Receiving Assistant, etc
High
Trade Logistics
Terminal, ICDs and CFS Operations, Freight Forwarding,
Customer Clearance, Delivery Executive, Pallet Maker
High
Computer Skills
Data Entry Operator, Purchase Order, Invoice and Bill of
Landing Generation, Robotics Operator
Very High
Skill Gap Analysis
Decision Making, Planning, Problem
Solving, Analytical Skills, Critical
Thinking Skills
Professional
Skills
Writing Skills, Reading
Skills, Oral Communication
Generic
Skills

5. Recommendation - Creation of a Skilling Ecosystem
Industry Leaders
Logistic Service
Providers
Creating
Curriculum
Collaborating
with LSC
Logistics Industry Council
Logistics Industry Council addresses the needs of the specific
sectors. Focused programs, research, events, industry
initiatives and partnership with government bodies will be
undertaken. The board will consist of senior members from
top 3PL service providers and industry experts.
Standardized
certifications
Focused
Programs
Research
and Events
Skill Outreach
Programs
Educational
Institutions
Various skill training
providers can get affiliated
to LSC
Individuals will get an
opportunity for
apprenticeship with major
logistics players
Agencies, Council and Government will
collaborate in opening of new training
centres at rural areas. These centres will also
form contract with logistics players for their
workforce requirements
Centers under
LSC
Universities, Institutions
located in rural areas will
introduce vocational
courses and updated
curricula on logistics
NAPS
Training/Apprenticeship
Contractual Agencies
(Blue Collar Workers)
Direct Hiring for
Associate/Operator/Supervisor
Outsourcing Hiring
Council
Certified
Professional
MySahyog

6. mySahyog – Integrated Web Platform
Council
Easy update about
•Curriculum
•Industry/Sector
Requirements
•Policies/Guidelines
Training
Center
Infra/Resources
Sector-wise courses
offered
Curriculum
Teachers/Instructors
Funding
Worker/Labor/Intern
Training &
Internships
Jobs
Awareness of
specific courses

7. Primary Research – Industry Speak
Besides the technical and
communication skills, there is also a lack of ethics
among the labor force.
Vipin Aggarwal, Business Development, Rivigo
We classify the labourers as: unskilled,
semi-skilled and skilled. We train and skill according
to these levels and requirements. At present there is
no policy to hire certified labourers only.
Nishin Ninan, DGM Operations, Mahindra Logistics
We prefer outsourcing our contractual
labor needs to third party logistics vendors. We
provide specific on-the-job training mostly tech
related for 2-3 weeks
Nitesh, Production Manager, Amazon
Current logistics workforce at our
plant lacks decision making and problem solving
skills on the shop floor and require continuous
supervision
Umesh, Manager, Lalji Mulji, Vapi
We train our supervisors and laborers
about inventory classifications (A, B and C) and
stock verification process.
• Laborers: Picking, Storing, Dispatching and how
to operate MHE in the most efficient way
• Supervisors: SAP and other software/tools.
Ritesh Kumar, Manager, Alstom
• Govt. schemes like PMKVY,
DDUKVY etc. are aimed at
imparting free training
• Company concerns: Even after
skilling, the employability is
low and attrition rate is high
• Labor concerns: Job security,
migration, wages
• Govt. can provide funds for
training and certification
approvals
• Regions are very fragmented.
Even in Maharashtra, there is
disparity among towns and
villages in terms of skills.
Abhinav Joshi, Fellow to the
Minister of Labour,
Maharashtra
As the sector is unorganized, it leads
to lower wages to the people who are working
currently
Rajesh Thool, Production Manager, GKPL

8. Name - Nathubhai, Worker, Valsad
Education - 8th passed
Organization – GKPL Industries
Job Characteristics
i. Contractual nature of work
ii. Lesser Overtime
iii. High physical intensive nature
iv. No computer exposure
v. Repeated nature of tasks
Job Motivation
i. Higher wages
ii. Full time employment
iii. Cross skilling and Learning
Name - Arun, Truck Driver, Mumbai
Education - 10th passed
Organization – SK Logistics
Job Characteristics
i. Longer Duration Trips
ii. No Accommodation Facilities
iii. Long time away from Family
iv. Irregularity of Payment
v. Self Skilled
Job Motivation
i. Upgradation of vehicle
ii. Shorter Duration Trips
iii. Regular payments to be made
iv. Living with family
Primary Research – Worker Speak

9. Research – Key Takeaways
High skill gap
Higher skill gap for cold chain and warehouse management operations
for roles i.e. Operators, supervisors, drivers, technicians, etc
Increased technology focus
Requirement for On-the-job training includes software and equipment
handling, etc
Outsourcing nature of Industry
Labour esp. unskilled is mostly contractual and outsourced to agencies.
Companies want to focus on core business and prefer to hire and fire
Lack of Standardised Industry Programs
Certified and industry vertical-aligned course is need of the hour
Lack of proper communication
Key requirements by companies not properly communicated to
skilling/training institutes. This lead to high attrition and low
employability
Lack of Industry wide Council
No central guiding/governing body for the logistics industry that can
frame policy, align requirements, design curricula. Fragmentation leads
to lower wages for labour, higher cost for logistics companies
No practical training in current programs
Most of the current programs conducted under Logistics Skill Council
lack hands-on practical training
Labour Concerns
Low wages, frequent migration and job shifts/rotation, lack of empathy
are some of the common concerns across various roles in the industry.

10. DIAGNOSTIC PHASE 2
Identify rural areas for
opening up new centers
Identify new rural
areas/belts
Forming long-term
relationships with centers
for hiring
Private Players to get initial
support: resources and
training programs
PRESCRIPTIVE PHASE
Collaboration with
Government
Collaboration with
govt and council for
curriculum
Introducing new
vocational courses
Activities
DIAGNOSTIC PHASE 1
Identify skill gap and
industry partnership
Identify opportunities for
collaboration
Analyze the Skill Gaps
present in the sector
Proposal for an industry
council and integrated
platform
INITIATIVE PHASE
Hiring and Training
Initiatives
Council guided
streamlining of hiring
process
Hiring from rural belts
for localized workforce:
low migration needs
Engagement activities
with workers to
improve perception
Implementation Timeline

11. Skilling Ecosystem in The Philippines
Successful Case Study