Why Investing in Skills & Training Means 'Profit' for Logistics and Distribution Businesses
Tuesday 2 September 2014
A well-trained workforce boosts productivity, efficiency and profitability (Image: Doncaster College)
In this post, we consider the skills challenges facing the logistics and warehousing sector, why investing in skills and qualifications is good for business, and how two of Sheffield City Region's logistics skills and training providers are working with companies to meet their training needs.
The UK Logistics and Distribution Sector – A Major Creator of Wealth and Employment
The numbers for the UK’s logistics and distribution industry are impressive: the sector comprises over 187,000 businesses contributing £93bn per year to the UK economy and employing over 2.25m people – that’s around 8% of the UK’s total workforce.
And that workforce is projected to grow significantly within the current decade. According to Skills for Logistics (the Sector Skills Council), the industry will require an additional 917,000 workers (+10%) between 2010 and 2020.[1]
Logistics and Warehousing Skills Shortages Are Bad For Businesses
UK survey data from the National Skills Academy [2] shows that skills shortages are affecting logistics and warehousing companies, and that those shortages are bad for business, including the bottom line.
Of the logistics businesses surveyed:
- 47% said that recruiting is difficult because ‘too few applicants have the required skills’
- 20% said that applicants ‘lack the required qualifications’
- 54% said that failing to fill vacancies ‘increases operating costs’
- 47% said that failing to fill vacancies made it ‘difficult to meet customer service objectives’
- 39% said that failing to fill vacancies made it ‘difficult to meet quality standards'
Investing in Logistics and Warehousing Skills Delivers Return on Investment
The same survey data provides clear evidence that logistics businesses benefit tangibly from investments in training or qualifications, notably in the areas of ‘increased productivity’ and ‘increased efficiency’ – both of which directly and positively impact a business’s bottom line - as well as 'increased profitability':
‘No Cost’, ‘Outstanding’ Logistics and Warehousing Training: the Barnsley College and Doncaster College Examples
Barnsley and Doncaster, two Metropolitan Boroughs within Sheffield City Region, are key UK logistics hot spots, recording growth in the sector of 29.5% since 2009 [3]. This growth has created a pressing need for investment in logistics skills and training that Barnsley College (OFSTED rated as a Grade 1 ‘Outstanding College’), Doncaster College and local businesses are working together to deliver. The colleges have established training relationships with major warehousing and logistics companies including Norbert Dentressangle, Aldi, Amazon, the Range and DHL.
Due to the growth in demand, both Barnsley College and Doncaster College have developed new delivery sectors to specialise in ‘Warehouse and Logistics’ and ‘Retail’. To support the development of these sectors, the colleges are now considering the development of two new Warehouse Academies located at M1 junction 36, Barnsley, and at the iPort or Doncaster Sheffield Airport, Doncaster.
According to Barnsley College’s Tracy Davis, both colleges can provide a wide range of skills and training services to businesses, often at no cost owing to their capacities to access government funding and grants.
‘Businesses often cite cost as a barrier to investments in skills and qualifications, but it isn’t,’ says Tracy. ‘The UK government has placed tackling unemployment and skills shortages at the top of its priorities, and millions have been pledged to programmes that we can use in Sheffield City Region to help businesses train and employ workers.’
The range of Recruitment and Training Services that both colleges provide to warehousing and logistics businesses includes:
- Sector Based Work Academies: a recruitment tool used by organisations seeking staff with a particular set of skills. They include a programme of training, a work placement and a guaranteed job interview for all students completing the programme.
- Traineeships: a recruitment tool used by organisations seeking apprentices. They include a programme of training and a work placement.
- Apprenticeships: work-based qualifications involving a minimum of 30 hours per week employment with time out to study (typically one day per week). Benefits for business include skilled, qualified and loyal staff with the most up-to-date, business-relevant training.
The clear message from both Barnsley College and Doncaster College is that they have the capabilities and the funding in place to provide the training and qualifications that warehousing and logistics companies need – and that investing in skills is profitable. All those companies have to do is get in touch…
To Find Out More, Contact Tracy Davis at Barnsley College's Employer Responsiveness Unit:
T: 01226 216166
E: t.davis@barnsley.ac.uk
W: www.barnsley.ac.uk
Barnsley College is the latest Skills and Training provider to join the Logistics Hub UK partnership.
T: 01226 216166
E: t.davis@barnsley.ac.uk
W: www.barnsley.ac.uk
Barnsley College is the latest Skills and Training provider to join the Logistics Hub UK partnership.
Data Sources:
[1] Skills for Logistics
[2] National Skills Academy (supplied by Barnsley College)
[3] Barnsley College
