SKILLING RURAL INDIA – ADVANTAGES FOR LOGISTICS INDUSTRY

Team Name: New Gen Leaders

Team Members Aman Singh Nalinaksh Kashyap Aniket Goswami
 Introduction & Overview
Logistics Sector Analysis Mahindra Logistics Objective

• Transport, material handling, storage, packaging and
distribution in rural areas
Rural
Logistics • Increased significance in logistics
• Indian economy - $2.6 trillion
Current • Logistics sector - $ 160 billion
status
• Largely neglected over the years
• Logistics cost in India - 13-15% of GDP
Creation of a technically skilled workforce across
Objective the different solutions offered by Mahindra
Logistics
• Warehousing – Inventory Control, Smart
Packaging, Space Optimization
Focus • Transportation – Network Optimization, Route
Areas Planning
• In-Factory Logistics – Receipt, Stacking, Tracking,
Trolley Loading, Inventory Maintenance
Creation of an integrated ecosystem consisting of
industry players, Logistics Skill Council, government
Strategy
educational institutes and labor agencies for skilling
and recruiting of workforce

Trends Business Problem

and
Future
Growth
Lack of proper skills in contractual laborers leads to greater
• Projection for 2020 - $ 215 billion hiring, training and attrition costs
 Challenges in the Industry
7. Impending shortage of drivers 1. Untrained/Under-trained workforce
• Transportation sector faces acute shortage of drivers • Lack of formal training
• 2016 shortage: 22% • Inability to handle new gadgets and instruments
• Expected shortage by 2022: 50%

6. Inadequate government spending 2. Poorly designed course curricula

• Expenditure on manpower skilling (2017-2018): • Outdated and irrelevant to the requirements
• China: Rs. 25864 crores 7 1 • Focus on theory & not practical
• India: Rs. 1488 crores
• China ~ 16 times greater expenditure
6 2
5. Poor enrolment in the vocational training programs 3. Image of the sector
• Low attendance in training centres 5 3 • Negative perception among youth
• Uncertainty over job/roles post training • Low work-life balance
4

4. Literacy and Education

• Low or poor literacy: Unsuitable for tech specific job
• Limitation in setting up of minimum education criteria by the companies
 Skill Gap Analysis

Generic Professional Decision Making, Planning, Problem

Writing Skills, Reading
Skills Skills Solving, Analytical Skills, Critical
Skills, Oral Communication
Thinking Skills

Sub-Sector/Vertical Roles offered Skill Gap

Cold Chain Operator, Engr. Specialist, Refrigeration Very High

Cold Chain Solution
Maintenance Specialist, Product Handling Specialist, etc.
Commercial Vehicle Operator, Transport Co-Ordinator, Medium
Transportation Loader and Unloader, Consignment Assistant, etc.
Warehouse Supervisor, Inventory Clerk, Warehouse Packer, High
Warehouse Management
Forklift Operator, Quality Checker, Receiving Assistant, etc
Terminal, ICDs and CFS Operations, Freight Forwarding, High
Trade Logistics
Customer Clearance, Delivery Executive, Pallet Maker
Data Entry Operator, Purchase Order, Invoice and Bill of Very High
Computer Skills
Landing Generation, Robotics Operator
 Recommendation - Creation of a Skilling Ecosystem
Logistics Industry Council addresses the needs of the specific
sectors. Focused programs, research, events, industry Agencies, Council and Government will
initiatives and partnership with government bodies will be collaborate in opening of new training
undertaken. The board will consist of senior members from centres at rural areas. These centres will also
top 3PL service providers and industry experts. form contract with logistics players for their
workforce requirements
Logistics Industry Council
Various skill training
Centers under providers can get affiliated
Logistic Service Focused Standardized Creating LSC to LSC
Providers Programs certifications Curriculum
Individuals will get an
Research Skill Outreach Collaborating opportunity for
Industry Leaders NAPS apprenticeship with major
and Events Programs with LSC
logistics players

Universities, Institutions
located in rural areas will
Educational
Training/Apprenticeship introduce vocational
MySahyog Institutions courses and updated
Direct Hiring for curricula on logistics
Associate/Operator/Supervisor
Contractual Agencies Council
(Blue Collar Workers) Certified
Outsourcing Hiring Professional
mySahyog – Integrated Web Platform

Easy update about Infra/Resources Training &

Training Center

Worker/Labor/Intern
Council
• Curriculum Sector-wise courses Internships
• Industry/Sector offered
Jobs
Requirements Curriculum
• Policies/Guidelines Awareness of
Teachers/Instructors specific courses
Funding
 Primary Research – Industry Speak
Besides the technical and
communication skills, there is also a lack of ethics
among the labor force.
Vipin Aggarwal, Business Development, Rivigo
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.
Nishin Ninan, DGM Operations, Mahindra Logistics
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
As the sector is unorganized, it leads
to lower wages to the people who are working
• Govt. schemes like PMKVY, currently
DDUKVY etc. are aimed at
imparting free training Rajesh Thool, Production Manager, GKPL
• Company concerns: Even after
skilling, the employability is
low and attrition rate is high
Current logistics workforce at our
• Labor concerns: Job security,
plant lacks decision making and problem solving
migration, wages
skills on the shop floor and require continuous
• Govt. can provide funds for
supervision
training and certification
approvals
• Regions are very fragmented. Umesh, Manager, Lalji Mulji, Vapi
Even in Maharashtra, there is
disparity among towns and
villages in terms of skills. We train our supervisors and laborers
about inventory classifications (A, B and C) and
stock verification process.
Abhinav Joshi, Fellow to the • Laborers: Picking, Storing, Dispatching and how
Minister of Labour, to operate MHE in the most efficient way
Maharashtra • Supervisors: SAP and other software/tools.
Ritesh Kumar, Manager, Alstom
 Primary Research – Worker Speak

Name - Arun, Truck Driver, Mumbai

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

High skill gap Lack of proper communication

Higher skill gap for cold chain and warehouse management operations Key requirements by companies not properly communicated to
for roles i.e. Operators, supervisors, drivers, technicians, etc skilling/training institutes. This lead to high attrition and low
employability

Increased technology focus Labour Concerns

Requirement for On-the-job training includes software and equipment Low wages, frequent migration and job shifts/rotation, lack of empathy
handling, etc are some of the common concerns across various roles in the industry.

Outsourcing nature of Industry Lack of Industry wide Council

Labour esp. unskilled is mostly contractual and outsourced to agencies. No central guiding/governing body for the logistics industry that can
Companies want to focus on core business and prefer to hire and fire frame policy, align requirements, design curricula. Fragmentation leads
to lower wages for labour, higher cost for logistics companies

Lack of Standardised Industry Programs No practical training in current programs

Certified and industry vertical-aligned course is need of the hour Most of the current programs conducted under Logistics Skill Council
lack hands-on practical training
 Implementation Timeline
Identify skill gap and Identify rural areas for Collaboration with Hiring and Training
industry partnership opening up new centers Government Initiatives
Identify opportunities for
collaboration Identify new rural Collaboration with Council guided
areas/belts govt and council for streamlining of hiring
curriculum process
Activities

Analyze the Skill Gaps Forming long-term Hiring from rural belts
present in the sector relationships with centers for localized workforce:
for hiring low migration needs

Proposal for an industry Private Players to get initial Introducing new Engagement activities
council and integrated support: resources and vocational courses with workers to
platform training programs improve perception

DIAGNOSTIC PHASE 1 DIAGNOSTIC PHASE 2 PRESCRIPTIVE PHASE INITIATIVE PHASE

Successful Case Study
Skilling Ecosystem in The Philippines