1 / 12

SKILLING RURAL INDIA – ADVANTAGES FOR LOGISTICS INDUSTRY

Explore the advantages of skilling rural India for the logistics industry, including improved workforce, cost optimization, route planning, and inventory control.

jdeslauriers
Download Presentation

SKILLING RURAL INDIA – ADVANTAGES FOR LOGISTICS INDUSTRY

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. SKILLING RURAL INDIA – ADVANTAGES FOR LOGISTICS INDUSTRY

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

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

  4. Skill Gap Analysis • Decision Making, Planning, Problem Solving, Analytical Skills, Critical Thinking Skills • Writing Skills, Reading Skills, Oral Communication • Professional Skills Generic Skills

  5. Recommendation - Creation of a Skilling Ecosystem 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. 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 Logistics Industry Council • Focused Programs • Standardized certifications • Creating Curriculum Centers under LSC Council Certified Professional Various skill training providers can get affiliated to LSC • Logistic Service Providers • Research and Events • Skill Outreach Programs • Collaborating with LSC Individuals will get an opportunity for apprenticeship with major logistics players NAPS • Industry Leaders Universities, Institutions located in rural areas will introduce vocational courses and updated curricula on logistics Educational Institutions Training/Apprenticeship MySahyog Direct Hiring for Associate/Operator/Supervisor • Contractual Agencies • (Blue Collar Workers) Hiring Outsourcing

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

  7. Primary Research – Industry Speak • 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 • Besides the technical and communication skills, there is also a lack of ethics among the labor force. • VipinAggarwal, Business Development, Rivigo As the sector is unorganized, it leads to lower wages to the people who are working currently Rajesh Thool, Production Manager, GKPL Current logistics workforce at our plant lacks decision making and problem solving skills on the shop floor and require continuous supervision Umesh, Manager, LaljiMulji, Vapi 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. NishinNinan, DGM Operations, Mahindra Logistics • 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 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

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

  9. Research – Key Takeaways • 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 • Lack of proper communication • Key requirements by companies not properly communicated to skilling/training institutes. This lead to high attrition and low employability • 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 • No practical training in current programs • Most of the current programs conducted under Logistics Skill Council lack hands-on practical training Increased technology focus Requirement for On-the-job training includes software and equipment handling, etc High skill gap Higher skill gap for cold chain and warehouse management operations for roles i.e. Operators, supervisors, drivers, technicians, etc • Lack of Standardised Industry Programs • Certified and industry vertical-aligned course is need of the hour • 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. Implementation Timeline Identify skill gap and industry partnership Identify rural areas for opening up new centers Hiring and Training Initiatives Collaboration with Government Identify opportunities for collaboration Identify new rural areas/belts Council guided streamlining of hiring process Collaboration with govt and council for curriculum Activities Hiring from rural belts for localized workforce: low migration needs Forming long-term relationships with centers for hiring Analyze the Skill Gaps present in the sector Introducing new vocational courses Engagement activities with workers to improve perception Private Players to get initial support: resources and training programs Proposal for an industry council and integrated platform PRESCRIPTIVE PHASE INITIATIVE PHASE DIAGNOSTIC PHASE 1 DIAGNOSTIC PHASE 2

  11. Successful Case Study Skilling Ecosystem in The Philippines

  12. THANK YOU!

More Related