Global labour shortage could worsen

The shortage of logistics-related labour is a global problem that will either remain the same or worsen over the next five years, according to a new survey by The World Bank, which calls for a major expansion of training and skills development initiatives in developing countries.

The new study, authored by Prof Alan McKinnon, Christoph Flöthmann, Kai Hoberg, and Christina Busch, which combines a new survey and the World Bank’s Logistics Performance Index Survey (2015/2016), found that shortages range from a lack of truck drivers to problems in filling senior supply chain management positions.

According to the report, respondents in developing countries point to the supervisory level for the most severe perceived skills shortage, while in developed countries, skill shortages were perceived at all levels, but at a much lower level.

The report has outlined a need for a “major expansion of logistics training and skills development initiatives in developing countries.”

“Developing regions are lagging behind developed countries in terms of training budgets, course content, and quality of the educational experience and sources of training,” it said.

The study also proposes a short guide for policy makers and international organisation intervening to support logistics improvements. It consists of a logistics competence maturity matrix that classifies countries into three categories based on their LPI competence index (basic, intermediate or advanced).