Tier II cities will drive jobs in logistics industry

Tier II cities will drive jobs in logistics industry

According to a study by India Ratings, revenue for logistic companies offering value-added road freight services would grow at a higher rate of 12-15 per cent during the 2014-15 fiscal and those offering basic road freight services (8-10 per cent). India being an emerging economy, the logistics industry is growing year on year, where enough supply chain talent (ready to use) is not available in the country.

In an exclusive interaction with TimesJobs, Ajit Jangle, group chief operating officer, Allcargo Logistics discusses the talent demand scenario in the logistics industry. He alleged that the logistics industry demands attitude of continuous learning, customer service orientation and flexibility of mind to accommodate customer’s changing requirements. 

The demand for logistics professionals has seen consistent growth during the last two years. What are the key factors driving this demand?

India being an emerging economy, our logistics industry is growing year on year, where enough supply chain talent (ready to use) is not available in the country. This is creating demand for logistics professionals.

What is the demand like, in terms of volume, at present? How is it going to change in 2014?

Logistics is quite diversified industry which includes transportation, warehousing customs clearance, freight forwarding, project logistics, container freight stations, express logistics, etc; thus it’s difficult to provide one number for demand or growth. According to a study by India Ratings, revenue for companies offering value-added road freight services would grow at a higher rate of 12-15 per cent during the 2014-15 fiscal and those offering basic road freight services (8-10 per cent).

Where is the demand, in terms of industry, location, specialization and positions? What is the current compensation structure? Will there be changes in near future?

As mentioned, there is demand is in every aspect of logistics; however we have seen more demand in metro cities. In India, companies across the industry are focusing on expanding in tier II cities to improve their reach to direct customers, thus we believe that the wave of demand will be expected in those cities in near future.

What is the industry seeking from the current breed of logistics professionals, in terms of skills and knowledge?

Currently, we do not have many reputed logistics institutes to support industry requirement of logistics professionals like in developed countries. Most of the professionals get on-the-job experience and then they move in the industries. It means industry has to invest in grooming this talent, so that over the period of time they start contributing.

At Allcargo logistics, we have management and graduate trainee programs, where we provide them exposure to various functions of logistics business throughout year. This exposure helps trainee to get complete perspective of the industry and can opt for specific function/department based on their interest, availability as well as aptitude. Industry is expecting retention of this talent for longer period of time, so that they can be groomed for the next levels.

A piece of advice to the aspiring logistics professionals:

Logistics industry is a knowledge-based industry, which is growing at a fast pace, thus it can be considered as a good option to build your career as a logistics professional. However, it is quite diversified and fragmented at this stage in India.

Similar to other service industries, it demands attitude of continuous learning, customer service orientation and flexibility of mind to accommodate customer’s changing requirements. Choose the right logistics companies, who can take your career seriously and groom you for the long term.

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