Talent Roadmap for Supply Chain and Logistics Industry in India
The Indian Budget 2022-23 has reemphasized that if India must become an economic superpower, it needs to transform its supply chain landscape. The government has already shown its intent which is visible from the following:
1. PM Gati Shakti National Master Plan aims to develop 22 greenfield expressways, 23 other major infrastructure projects, and 35 Multi-Modal logistics Parks as part of Bharatmala Pariyojana.
2. Centre will roll out Unified Logistics Interface Platform (ULIP) very soon to drastically reduce logistics costs and make Indian goods competitive. ULIP will integrate about 24 logistics systems across six ministries and departments to provide real-time data and fill a critical gap.
3. National highways network will be expanded by 25000 km with an outlay of INR 20000 crores in 2022-23
These initiatives augur a bright future for the Entire Supply Chain and Logistics Ecosystem. This industry is at the cusp of transformation, which will see exponential growth and will be the fuel that will propel the Indian Economy.
To make this happen, technology is available in abundance. AI, ML, Blockchain, robotics will be the driver for the manifold productivity jump in this Industry.
The biggest constraint that will come in the way of this vision and growth will be the availability of the right talent. This industry has always been the least attractive for the bright talents from all domains. Whether it is functional talent or technical talent, they see this industry as providing the least work-life balance, growth opportunity, or compensation growth. The workplaces in this industry have traditionally been rugged, rustic and far-flung places. There was an influx of technology from early 2000 onwards but was limited to business process automation in isolated areas. Specifically, with respect to Indian companies barring a few, most didn’t find investing in technology and talent very attractive. The whole eco-system has also been characterized by the apathy of earlier governments coupled with a fragmented industry.
You can understand how fragmented this Industry in India is by a mere fact that even with a size of $300 billion this industry hasn’t got even one player, which is close enough to revenue of $1 billion.
This presents a massive opportunity for this industry. All of this opportunity can come to nought if industry fails to invest in building an entirely new talent pool that is tech savvy. One which understands the language of digitalization and impacts every aspect of their organizations. To be competitive and to grow exponentially, HR Leaders needs to focus on a four-pronged approach:
1. Renew Existing Talent
HR and business leaders need to take a tough look at the stock of talent which is currently available. Invest in those who have been able to retain their learning agility. Quickly transform this pool into a digitally literate talent that will be able to grasp AI, ML, Block-Chain, Robotics, etc. This renewed talent will comprehend these new technologies and quickly think of various used case scenarios. From the existing talent pool, even if we are able to make 50% of existing talent digitally literate, HR will have done an excellent job. Rest has to be dealt with appropriately. This renewed talent pool will not be able to fill even 20% of the talent requirement, which will leave the industry with a vast shortfall of 80%.
2. Attract Talent from other Industry
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The shortage of Talent Pool discussed in the previous point can only be met by two strategies:
a. Attract Talent from Other Industries
To implement this, HR can focus on industries that have already renewed their talent pool to meet the needs of technology and digital disruption needs. Challenges that will come in the way will be the attractiveness of this industry's culture and work environment. New age supply chain companies have already started to address this challenge.
b. Build Talent from entirely unrelated industries
During the initial days of ITES, BPOs, when faced with fast growth, HR responded with multiple experiments to enhance the talent pool. They did an outstanding job of attracting talent from very unrelated industries. These new talents not only were quickly assimilated but served as the fuel for the growth of IT and ITES in India. Banking Industry has also done many experiments to expand their talent pool. The latest such experiment focuses on housewives who have dropped from talent pool for various reasons. Logistics and supply chain industry will see similar experiments from the players who want to be part of this growth story.
c. Building a Cadre of Workforce
The government of India has simplified half a dozen procedures for India Inc to incentivize them to take on apprenticeship training in a big way, a move which will double the number of apprentices by the end of year 2022. Supply chain and logistics industry will be greatly benefited by this. This can be used to create a stable pool of workforce. This will not only be cost effective but will lead to a trained workforce.
3. Build Progressive Culture
In the previous point, I referred to this briefly. Traditionally, This Industry has been visualized by talents from other industries as a rough, tough, rugged, and conservative place. This industry hasn’t been seen as a leader in employee-friendly policies and work environments. This perception of culture has denied this industry services of some very bright talent. Except for someone married to supply chain and logistics, most of the other promising talent has kept this as their last choice.
To meet the explosive growth requirement of this Industry there is an urgent need to address this. We can’t keep saying that we only need people who can survive our rough environments but have to proactively change and adopt a progressive culture and employee-friendly outlook if we intend to succeed in our dream of transforming this industry. Culture transformation should be the top agenda of all logistics and supply chain tycoons, along with digital transformation.
4. Rebuild HR Function and Processes
Last but not least, To execute the above-discussed strategies, the Industry will also require an HR team that understands how this can be done. Industry will be best served if they induct HR Talents from other industries which have undergone these changes earlier. One who is the custodian of old culture can hardly be trusted with the agenda of culture transformation.
The time has come where HR can play a very strategic role in transforming this industry. HR needs to directly add value by working on strategic agenda of Talent, Learning, Digital HR, and building a new pool of progressive leaders. The agenda needs to move from merely viewing HR as a cost to transforming it into a core business function.
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2yWorth reading Sir
Leadership Development/Executive Coaching/Business Consulting
2yA very accurate diagnosis of the disease and very good prescription for the cure, Sunil !!
Associate Vice President HR Values & Compliance at Advent Management & Consulting Services
2ySo much of apt information and insights. Very rightly explained Sunil Sir! This decade is a platform for start-ups giving exponential growth opportunities for everyone. "Advent Management & Consulting Services" is capable to facilitate end-2-end HR services in #hiring #processimprovement #policiesandprocedures #employeelearningdevelopment #processautomation #payrollservices #complianceservices #labourlawcompliance #audits #outsourcingservices at pan India level. Best Wishes to India Inc
Data Scientist @ Signify || Career Guidance @ CareerTests.in
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🚀Join the Growth Journey at JSW Steel🚀 | #BetterEveryday | HR Business Partner | BIT Mesra Campus Alumni | Top LinkedIn Recruitment Voice
2yInsightful and very detailed road map