As part of a drive to identify areas of the economy where skills gaps may exist, a Colchester based awarding organisation, Gateway Qualifications, has carried out an assessment on the Procurement and Logistics markets.
The organisation took soundings from both the Further Education sector and from private providers over a period of several months during 2015, the year in which Prime Minister David Cameron expressed concern over procurement issues in the public sector such as the West Coast Mainline Rail contract and the Carrier Strike Aircraft project and David Wells, Chief Executive of the Freight Transport Association, commented that “the logistics sector is having real problems attracting new recruits.”
Janet Ravensdale, a senior Curriculum Manager and qualified assessor worked with Gateway Qualifications on the project, noting that a UK Commission for Employment and Skills (UKCES) report published in October 2014 had reported on the need for a more qualified workforce. Among its findings was the following statement; “Logistics is a key part of the UK economy, contributing over £90billion and employing 2.2 million people, some 8% of the workforce.” In July 2015 the Association for Consultancy and Engineering also published a report which talked of a ‘skills mismatch’ in the sector, it highlighted the fact that there exists a wide variation in procurement methods depending on the project. It concluded that “the same skills are not required to deliver each of these approaches.”
The UKCES report went further, urging employers to recognise that “As technology advances, the skills required are changing to meet them. Advanced automation, software systems and high tech advances in warehousing and tracking systems means IT skills are now essential. There are also roles that require highlevel expertise in applied mathematics and statistics for analyzing data and to collate and interpret technical reports.”
Efforts are, however, being made to close the skills gap and give logistics and procurement the recognition they warrant. Gateway Qualifications is among the organisations extending and expanding its range of awards in these subjects to improve and increase the supply of qualified young staff, working with FE colleges such as South Gloucestershire and Stroud, Basingstoke College of Technology and South East Essex College. New qualifications are on their way, for example a Level 3 qualification for 16- 19 year olds which will provide a platform for younger learners to progress to university and another for the 19+ age group, supporting access to higher education for those who do not have an academic background and might struggle to move straight onto a degree course.
Local Enterprise Partnerships (LEPs) are also doing good work with areas such as New Anglia, South East Midlands and Thames Gateway Kent promoting apprenticeships and qualifications in Logistics, Transport and Storage. South East Midlands alone aims to have an additional 94,000 apprentices by 2020 with Logistics identified as a key sector.
Furthermore, industry insiders support the proposition that Chief Procurement Officers are becoming increasingly important members of the boardroom. David Read, CEO of Food Service Sector procurement specialists Prestige Purchasing, recently seen on BBC TV commenting on the relationship between food pricing and environmental issues, comments:
“In the last 10-15 years the procurement sector, with some sterling work from the professional institutes that serve it, has developed to occupy an important strategic role for business. It is the axis between any organisation and its supplier base and in addition to the technical knowledge necessary there is a real need for young professionals to acquire the interpersonal skills that will drive those relationships forward. I welcome the move to increase and broaden the range of qualifications available.”
Janet Ravensdale believes that with growing recognition of the strategic importance of procurement and logistics disciplines and the increasing availability of relevant professional and vocational qualifications the outlook is generally positive.
“As just one example, Warwick University identified in 2013 that 19% of the logistics workforce occupies a management role against 13% in the UK workforce at large and that 53% hold at least a Level 3 qualification. That’s encouraging news and our analysis is that the trend is definitely in the right direction. We have made a commitment to support this area of the economy through the broader availability of our qualifications and to help close the skills gap over the next few years.”
GATEWAY QUALIFICATIONS
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