scm pro india salary survey feature 2014

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SCM Pr n AcAdemic AdvocAcy n Survey n Knowledge n HumAn reSource Supply Chain Management Professional AcAdemic AdvocAcy Forecasting, Demand Management and Capacity Planning Page...8 Knowledge On Time In-Full Page...40 colUmn Glass ceiling of Forecast Accuracy Page...31 April 2014 Vol. 2—No. 2 ` 150 SALARY SURVEY 2014 Page 32 IN THIS ISSUE

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In an exclusive to SCMPro, Logistics Executive shares its compilation of Salary Survey Report 2014 that covers the entire spectrum of salary bands and geographical territories in India.

TRANSCRIPT

Page 1: Scm pro   india salary survey feature 2014

SCMPr n AcAdemic AdvocAcyn SurveynKnowledgenHumAn reSource

Supply Chain Management Professional

AcAdemic AdvocAcyForecasting, Demand Management and Capacity Planning Page...8

KnowledgeOn Time In-Full

Page...40

colUmnGlass ceiling of Forecast Accuracy

Page...31

April 2014 Vol. 2—No. 2 `150

Salary Survey 2014

Page 32

In ThIs I s s u e

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32 SCMPr April 201432 SCMPr March 2013

In an exclusive to SCMPro, Logistics Executive shares its compilation of Salary Survey Report 2014 that covers the entire spectrum of salary bands and

geographical territories in India.

MethodlogyThe research and information contained within this report has been compiled by the Logistics Executive Group from research undertaken and intelligence gathered in the course of its everyday business activities.

The Logistics Executive Group was founded in 1999 and has offices in India, Australia, Singapore, Hong Kong, China, Dubai and United Kingdom. Specialising in Logistics & Supply Chain Executive Recruitment, Business Consulting and Training, the company has an active database in excess of 125,000 logistics and sup-ply chain professionals.

Information contained within this report is compiled from data contained with our extensive database, business acquired intelligence and regular research surveys, which includes the Global Employment Market Report (now in its 8th year). The Global Employment Market Report is an online survey of approximately 10-15 minute duration and was emailed to more than 75,000 people within the Supply Chain & Logistics Industry in late 2013. About 5,178 respondents completed the survey. NB: The results are purely indicative in terms of overall trends within the industry.

Further to this, the Logistics Executive Group undertook a series of interviews with HRD‘s and HR Person-nel validating this data and this information has been incorporated into the final document produced. Sources for this particular research includes:n Human Resource Director Interviewsn Business briefing provided by CEO’s of leading 3PL companiesn Logistics Executive’s Employment Market Report data from late 2013n Logistics Executive’s business intelligence databasen Candidate and Client interviews (conducted by Logistics Executive Group)

MethodlogyThe research and information contained within this report has been compiled by Logistics Executive from research undertaken and intelligence gathered in the course of its everyday business activities. Logistics Executive was founded in 1999 and has offices in India, Australia, Singapore, Hong Kong, China and Dubai.

Information contained within this report is compiled from data contained with our extensive database, business acquired in-telligence and regular research surveys, which includes the Global Employment Market Report (now in its 7th year). The Global Employment Market Report is an online survey of approximately 10-15 minute duration and was emailed to more than 55,000 people within the Supply Chain & Logistics Industry in late 2012. About 4,550 respondents completed the survey.

Further to this, Logistics Executive undertook a series of interviews with HRD‘s and HR Personnel validating this data and this information has been incorporated into the final document produced.

Sources for this particular research include:n Human Resource Director Interviewsn Business briefing provided by CEO’s of leading 3PL companiesn Logistics Executive’s Employment Market Report data from late 2012n Logistics Executive’s business intelligence databasen Candidate and Client interviews (conducted by Logistics Executive)Note: The results are purely indicative in terms of overall trends within the industry.

n analysis n Practice n knowledge n Survey n human resource

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salary survey

33SCMPr April 2014

n analysis n Practice n knowledge n Survey n human resource

33

Look WithinLogistics Executive Group has regu-

larly undertaken research and gath-ered intelligence to bring out a Sal-

ary Guide report for the logistics industry. And the findings do bring surprises. While the cost of logistics continues to spiral in India, there seems to be little technique to bring it down.

However, there are numerous changes in this sector. The retail sector has grown and this has brought in changes in the logistics as well. What is heartening is the vast number of employees that the logistics sector will need in the future in this sector.

Moreover, while costs are worrying, most logistics managers are also worried about the new types of industries that are coming up, such as e-commerce and e-retailing. This is ensuring that the supply chain and logistics industry will undergo a transformation and there could be a need for radical change. It will also require the managers to cater to B2C and C2C markets – something that could be new to them.

This means that the supply chain indus-try will have to step up to create new talent pools and also look for new types of talent in the industry. Talent shortage is not some-thing that can merely be filled with new candidates. The government of India must create courses that will enable emergence of new courses and encourage students to take up supply chain as a career course. Accord-ing to PWC, in their recently released 2030 Transport and Logistics report, the logistics industry will need to find more than 17 mil-lion more workers over the next 10 years. As an industry, the supply chain is not attractive to a lot of people. It’s associated with ports and docks, warehouses, etc. But there’s much more to that.

Most companies need to attract talent by branding themselves and thus gain the trust of job seekers. There’s also the apprehension that the logistics sector is a poorly paid one and there’s no scope for growth and learn-ing. HR should work towards changing this by offering a multicultural work environ-ment and overseas training assignments and projects. Also the compensation and benefits should be benchmarked and made as attrac-tive when compared to other industries.

Surprisingly, the supply chain sector is also attracting women. Those associated with this sector will see that more women have also joined the workforce and have taken up eminent positions. If companies modify their benefits and compensation structures along with the working conditions offered then more women are likely to take this up. They should provide flexibility in work hours, work-life balance programs (working from home and with flexible work hours), on-site child-care services, career-counsel and mentoring for women employees.

It would also help if companies moved in quickly and thought up innovative ways to hire new talent, men and women, from other industries that will help them bring in ideas, skills and experience. Referral pro-grams should be made more rewarding and so too the employee retention schemes.

The rate of attrition depends on several factors. While most of the time, people cite money as the reason, there needs to be a good working culture in the company and a strong reason to stay. A lot of people now also want career advancement, while of course money is a motivator.

Training employees and commitment to them from the employer’s side will definitely help any organization.

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Supply Chain & Logistics 2014 India Salary Survey Report   2

Industry / Supply Chain Management

Position Mumbai Chennai Delhi Bangalore Pune Hyderabad

VP/ Director Supply Chain 75  -­‐  95   75  -­‐  85   70  -­‐  95   75  -­‐  80   75  -­‐  80   65  -­‐  75  

VP/Director Logistics 45  -­‐  50   40  -­‐  50   40  -­‐  55   40  -­‐  50   40  -­‐  45   40  -­‐  45  

General Manager Supply Chain 40  -­‐  80   30  -­‐  50   40  -­‐  75   25  -­‐  35   22  -­‐  45   24  -­‐  45  

General Manager Logistics 35  -­‐  50   30  -­‐  45   30  -­‐  50   25  -­‐  40   25  -­‐  45   25  -­‐  35  

Operation / Warehousing

Regional Logistics Manager 18  -­‐  24   7  -­‐  15   17  -­‐  22   14  -­‐  18   8  -­‐  15   8  -­‐  15  

Warehouse / DC Manager 6  -­‐  12   5  -­‐  8   5  -­‐  12   5  -­‐  8   4  -­‐  8   5  -­‐  8  

Warehouse/Operations Executive 2  -­‐  6   2  -­‐  5   2  -­‐  6   2  -­‐  5   2  -­‐  6   2  -­‐  4  

Lean / Quality / Six Sigma Manager 10  -­‐  16   8  -­‐  15   10  -­‐  17   6  -­‐  11   6  -­‐  15   8  -­‐  12  

Logistics Specialist 5  -­‐  8   4  -­‐  6   5  -­‐  8   5  -­‐  6   3  -­‐  6   3  -­‐  6  

Procurement / Purchasing

Procurement VP / Director 65  -­‐  70   35  -­‐  50   65  -­‐  75   30  -­‐  50   30  -­‐  50   30  -­‐  40  

Senior Procurement Manager 18  -­‐  30   15  -­‐  20   15  -­‐  30   12  -­‐  20   12  -­‐  20   12  -­‐  20  

Senior Quality Manager 8  -­‐  20   8  -­‐  12   8  -­‐  20   9  -­‐  18   8  -­‐  13   8  -­‐  12  

Sourcing Manager 7  -­‐  15   6  -­‐  12   8  -­‐  15   7  -­‐  12   8  -­‐  10   5  -­‐  9  

Purchasing Manager 5  -­‐  9   5  -­‐  9   5  -­‐  9   5  -­‐  9   5  -­‐  9   5  -­‐  8  

Purchasing Officer 2  -­‐  5   2  -­‐  4   2  -­‐  5   2  -­‐  5   2  -­‐  4   2  -­‐  4  

Inventory, Planning & Demand

Demand/ Supply Planning Head 25  -­‐  35   18  -­‐  25   25  -­‐  30   20  -­‐  25   18  -­‐  25   18  -­‐  25  

Supply Chain Manager 12  -­‐  20   12  -­‐  16   12  -­‐  18   10  -­‐  15   10  -­‐  15   10  -­‐  12  

Planning / Forecast Manager 7  -­‐  15   5  -­‐  12   7  -­‐  15   6  -­‐  11   5  -­‐  11   7  -­‐  11  

Planner 5  -­‐  9   5  -­‐  8   5  -­‐  9   5  -­‐  7   5  -­‐  7   5  -­‐  7  

Commodity Manager 8  -­‐  12   6  -­‐  9   8  -­‐  12   8  -­‐  12   9  -­‐  10   8  -­‐  10  

Inventory Manager 5  -­‐  7   5  -­‐  6   5  -­‐  7   5  -­‐  6   5  -­‐  7   5  -­‐  6  

Inventory Controller 3  -­‐  7   2  -­‐  5   3  -­‐  7   2  -­‐  6   2  -­‐  5   2  -­‐  5  

Consulting &Project Management

Supply Chain Consultant 15  -­‐  35   12  -­‐  30   15  -­‐  35   15  -­‐  25   12  -­‐  20   12  -­‐  20  

Project Implementation Manager 12  -­‐  19   10  -­‐  14   10  -­‐  19   13  -­‐  18   9  -­‐  14   10  -­‐  14  

Project Manager 15  -­‐  20   14  -­‐  16   13  -­‐  20   12  -­‐  15   10  -­‐  12   10  -­‐  15  

Transport            

General Manager Transport 40  -­‐  55   30  -­‐  40   40  -­‐  55   25  -­‐  30   15  -­‐  25   15  -­‐  20  

National Distribution Head 25  -­‐  35   22  -­‐  35   23  -­‐  35   14  -­‐  26   15  -­‐  25   15  -­‐  25  

Zonal Distribution Manager 12  -­‐  16   9  -­‐  12   10  -­‐  14   9  -­‐  12   9  -­‐  12   9  -­‐  12  

Transport Controller 5  -­‐  7   5  -­‐  7   5  -­‐  7   4  -­‐  6   3  -­‐  5   3  -­‐  5  

Sales & Marketing

Sales Director 65    -­‐  75   40  -­‐  50   65  -­‐  75   30  -­‐  45   25  -­‐  40   25  -­‐  40  

Area Sales Manager 30  -­‐  45   25  -­‐  35   30  -­‐  45   25  -­‐  35   15  -­‐  20   15  -­‐  20  

Regional Brand Director 20  -­‐  35   15  -­‐  30   20  -­‐  35   15  -­‐  22   13  -­‐  22   13  -­‐  22  

Regional Brand Manager 15  -­‐  20   14  -­‐  17   15  -­‐  20   10  -­‐  20   13  -­‐  17   10  -­‐  15  

Territory Sales Manager 7  -­‐  12   6  -­‐  10   7  -­‐  12   7  –  10   7  –  10   7  -­‐  10  

 Salary data is shown as a range from low – high and is displayed as an Annual Base Salary in Lakhs Per Annum. Additional benefits such as annual bonus, company vehicles or travel allowances may apply. (Cr) = Crores.

 

Supply Chain & Logistics 2013 India Salary Survey Report   2

Industry / Supply Chain Management

Position Mumbai Chennai Delhi Bangalore Pune Hyderabad

MD / GM Logistics 75 - 95 75 - 85 75 - 95 75 - 80 75 - 80 50 - 75

Supply Chain VP / Director 45 - 80 30 - 50 40 - 75 25 - 35 22 - 45 24 - 45

Logistics Director 22 - 60 30 - 45 30 - 65 25 - 40 25 - 50 25 - 35

Operation / Warehousing

Regional Logistics Manager 18 - 24 7 - 18 17 - 22 14 - 18 8 - 18 8 - 18

Warehouse / DC Manager 6 - 12 5 - 8 5 - 12 5 - 8 4 - 10 5 - 8

Warehouse/Operations Executive 2 - 6 2 - 5 2 - 6 2 - 5 2 - 6 2 - 4

Lean / Quality / Six Sigma Manager 8 - 16 8 - 15 9 - 17 6 - 11 6 - 15 8 - 12

Logistics Specialist 5 - 8 4 - 6 5 - 8 3 - 6 3 - 6 2 - 6

Procurement / Purchasing

Procurement VP / Director 40 - 75 30 - 45 40 - 75 25 - 50 25 - 50 25 - 40

Senior Procurement Manager 12 - 20 10 - 15 12 - 18 10 - 15 10 - 14 9 - 14

Senior Quality Manager 8 - 20 8 - 12 8 - 20 9 - 18 8 - 13 8 - 13

Sourcing Manager 7 - 15 6 - 14 8 - 15 7 - 11 5 - 10 5 - 9

Purchasing Manager 5 - 9 5 - 9 5 - 9 5 - 9 5 - 8 5 - 7

Purchasing Officer 2 - 5 2 - 4 2 - 5 2 - 5 1 - 4 2 - 4

Inventory, Planning & Demand

Demand/ Supply Planning Head 25 - 35 18 - 25 22 - 30 20 - 25 16 - 25 18 - 25

Supply Chain Manager 12 - 20 12 - 16 12 - 20 10 - 17 10 - 15 7 - 11

Planning / Forecast Manager 7 - 12 5 - 9 5 - 12 6 - 9 5 - 7 7 - 9

Planner 5 - 9 5 - 8 5 - 9 5 - 7 5 - 7 5 - 7

Commodity Manager 8 - 12 6 - 9 8 - 12 8 - 12 9 - 10 8 - 10

Inventory Manager 5 - 7 3 - 5 5 - 7 3 - 5 5 - 7 3 - 5

Inventory Controller 3 - 7 1 - 5 3 - 7 2 - 6 2 - 5 2 - 5

Consulting &Project Management

Supply Chain Consultant 12 - 35 12 - 30 15 - 35 15 - 25 8 - 15 8 - 15

Project Implementation Manager 12 - 19 7 - 14 10 - 19 13 - 18 9 - 14 10 - 14

Project Manager 12 - 20 14 - 16 13 - 20 12 - 15 10 - 12 10 - 13

Transport

General Manager Transport 20 - 35 18 - 25 20 - 30 20 - 30 15 - 20 15 - 20

National Distribution Head 25 - 50 22 - 35 23 - 45 14 - 26 15 - 25 15 - 25

Zonal Distribution Manager 12 - 16 9 - 12 10 - 14 9 - 12 11 - 14 11 - 14

Transport Controller 5 - 7 5 - 7 5 - 7 4 - 6 2 - 5 2 - 5

Sales & Marketing

Sales Director 30 - 75 30 - 50 30 - 75 30 - 45 25 - 40 25 - 40

Area Sales Manager 12 - 15 10 - 14 12 - 16 12 - 15 9 - 11 9 - 11

Regional Brand Director 15 - 35 15 - 30 15 - 35 15 - 22 13 - 22 13 - 22

Regional Brand Manager 15 - 25 14 - 22 15 - 25 10 - 20 13 - 17 10 - 15

Territory Sales Manager 7 - 12 6 - 10 7 - 12 5 - 9 6 - 9 5 - 8

 Salary data is shown as a range from low – high and is displayed as an Annual Base Salary in Lakhs Per Annum. Additional benefits such as annual bonus, company vehicles or travel allowances may apply. (Cr) = Crores.

SCMPr

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Supply Chain & Logistics 2014 India Salary Survey Report   3

Logistics Service Providers (LSP/3PL’s)

Position Mumbai Chennai Delhi Bangalore Pune Hyderabad

CEO / MD / Country Manager 80  -­‐  2.0  (Cr)   75  -­‐  1.5(Cr)   80  -­‐  2.0  (Cr)   75  -­‐  1.5  (Cr)   60  -­‐  1.0  (Cr)   60  -­‐  1.0  (Cr)  

COO/Director 75  -­‐  90   60  -­‐  75   75  -­‐  90   65  -­‐  75   50  -­‐  65   50  -­‐  65  

General Manager 40  -­‐  55   30  -­‐  45   40  -­‐  55   30  -­‐  45   30  -­‐  40   30  -­‐  40  

Regional Manager 25  -­‐  30   20  -­‐  25   25  -­‐  30   20  -­‐  25   12  -­‐  20   12  -­‐  20  

Branch Manager 15  -­‐  20   8  -­‐  10   15  -­‐  20   8  -­‐  10   8  -­‐  10   8  -­‐  10  

Sales & BD            

VP / GM / Sales Director 45  -­‐  65   35  -­‐  40   45  -­‐  60   35  -­‐  45   35  -­‐  40   25  -­‐  30  

National Sales Manager 35  -­‐  50   25  -­‐  35   35  -­‐  50   25  -­‐  35   25  -­‐  35   25  -­‐  28  Regional Sales Manager / Territory Manager

22  -­‐  32   15  -­‐  18   22  -­‐  32   12  -­‐  18   14  -­‐  18   10  -­‐  15  

BD Manager (3PL) 12  -­‐  18   8    -­‐  14   10  -­‐  18   8  -­‐  14   8  -­‐  12   8  -­‐  10  

BD Manager (Freight) 8  -­‐  15   7  -­‐  13   8  -­‐  15   7  -­‐  13   6    -­‐  12   6  -­‐  11  

Key Account Manager 10  -­‐  18   8  -­‐  12   10  -­‐  18   10    -­‐  13   8  -­‐  10   5  -­‐  8  

Sales Executive 4  -­‐  7   3  -­‐  6   4  -­‐  7   4  -­‐  5   3  -­‐  5   3  -­‐  5  

Operations            

3PL Contract Manager 30  -­‐  45   25  -­‐  35   35  -­‐  40   22  -­‐  35   20  -­‐  30   18  -­‐  30  Warehouse/Operations/DC Site Manager

8  -­‐  15   7  -­‐  9   8  -­‐  12   8  -­‐  12   6  -­‐  9   5  -­‐  8  

Warehouse/Operations Executive 5  -­‐  10   4  -­‐  8   4  -­‐  8   5    -­‐  9   5  -­‐  7   4  -­‐  7  

Import/Export Manager 6  -­‐  10   6  -­‐  8   6  -­‐  10   5  -­‐  8   4  -­‐  6   4  -­‐  6  

Air Freight / Sea Freight Manager 14  -­‐  18   10  -­‐  15   12  -­‐  18   8  -­‐  12   8  -­‐  10   8  -­‐  10  

Shipping Clerk 3  -­‐  4   3  -­‐  4   3  -­‐  5   3  -­‐  5   3  -­‐  4   2  -­‐  4  

Project Manager            

Project Implementation Manager 15  -­‐  19   10  -­‐  14   12  -­‐  15   10  -­‐  14   10  -­‐  12   8  -­‐  12  

Project Manager – WMS/TMS 18  -­‐  22   14  -­‐  20   16  -­‐  20   14  -­‐  18   10  -­‐  12   12  -­‐  14  

Transport            

General Manager Transport 45  -­‐  60   25  -­‐  40   40  -­‐  50   25  -­‐  40   25  -­‐  35   20  -­‐  30  

National Transport Manager 35  -­‐  45   30  -­‐  40   35  -­‐  40   25  -­‐  35   25  -­‐  35   25  -­‐  35  

Line-haul Manager 22  -­‐  28   20  -­‐  22   20  -­‐  24   16  -­‐  20   15  -­‐  22   12  -­‐  17  

National Compliance Manager 15  -­‐  25   12  -­‐  18   15  -­‐  25   10  -­‐  14   7  -­‐  10   7  -­‐  12  

Site Manager 10  -­‐  15   8  -­‐  1  3   10  -­‐  14   8  -­‐  12   7  -­‐  10   7  -­‐  10  

Fleet Manager 12  -­‐  15   8  -­‐  12   12  -­‐  15   8  -­‐  10   7  -­‐  9   6  -­‐  9  

Workshop Manager 6  -­‐  9   5  -­‐  9   6  -­‐  9   4  -­‐  6   4  -­‐  5   3  -­‐  5  

 Disclaimer:  Logistics  Executive  is  committed  to  the  highest  standard  and  quality  of  information  and  every  attempt  has  been  made  to  present  up-­‐to-­‐date,  accurate  information.  The  information  contained  herein  is  general  in  nature  and  is  not  intended  as,  and  should  not  be  construed  as  professional  advice  provided  by  Logistics  Executive  to  the  reader.  While  every  effort  has  been  made  to  offer  current  and  accurate  information,  errors  can  occur.  Much  of  this  information  is  obtained  from  records  that  for  reasons  of  privacy  are  confidential.  This  information  is  provided  as  is,  with  no  guaranty  of  completeness,  accuracy,  or  timeliness,  and  without  warranty  of  any  kind,  expressed  or  implied,  including  any  warranty  of  performance,  merchantability,  or  fitness  for  a  particular  purpose.  In  addition,  changes  may  be  made  in  this  information  from  time  to  time  without  notice  to  the  user.  The  reader  also  is  cautioned  that  this  material  may  not  be  applicable  to,  or  suitable  for,  the  reader’s  specific  circumstances  or  needs,  and  may  require  consideration  of  additional  factors  if  any  action  is  to  be  contemplated.  The  reader  should  contact  a  professional  prior  to  taking  any  action  based  upon  this  information.  Logistics  Executive  assumes  no  obligation  to  inform  the  reader  of  any  changes  in  law,  business  environment,  or  other  factors  that  could  affect  the  information  contained  herein.  

Salary data is shown as a range from low – high and is displayed as an Annual Base Salary in Lakhs Per Annum. Additional benefits such as annual bonus, company vehicles or travel allowances may apply. (Cr) = Crores.

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Changing Fortunes - Salary Trends in 2014

In the past 10 years, the rise in con-sumer purchasing power, growing consumerism and brand proliferation

has driven growth beyond India’s tradi-tional industrial growth sectors.

As good example of this is retail mod-ernization in India and according to the Investment Commission of India, the re-tail sector is expected to grow almost three times its current levels to $660 billion by 2015 (just two years away). The grow-ing Indian market has already attracted a number of foreign retailers and domestic Corporates to invest in this booming sec-tor and with new FDI regulations com-ing into effect, it is only a matter of time before multi-brand retail changes the re-tail supply chain sector forever.

The rise of the middle class consumer brings with it significant advances in lift-ing India towards a ‘first-world’ economy and will see rapid change in the social economics of its people.

But it’s not without its challenges for the supply chain and logistics sector.

Costs of logistics are still higher in In-dia than in more developed economies. In fact, the logistics industry in India, which is expected to touch US$200 bil-lion by 2020 has a estimated cost of logis-tics in India valued at 13 – 14% of GDP, whereas in developed nations the cost is in the range of 7-8% of their GDP.

It’s alarm bell that rings loudly in cor-porate head offices around the world, when they compare this cost metric with best practice. And the challenge of re-ducing the cost of logistics isn’t getting easier. As the Indian economy continues to recover from it’s recent recession, the logistics industry will still need to ex-pand in order to continue to service the steady recovering manufacturing and re-

tail markets. Although be it that growth and expansion with come largely in the form it has evolved over the past 5 years-but it will bring with it none of the cost control measures, supply rationalisation and supply chain innovation that MNC’s drove heavily (and with urgency) in more mature markets during the 2008 Global Finance Crisis (GFC). The bi-product of which is shorted supply chains, reduced costs and more adaptable.

Having said that, change is happen-ing. Particularly in multi-modal trans-port, specifically in the trucking and rail sectors where growth will exceed that of domestic airfreight as cost becomes a significant factor. Likewise, the trend of moving international airfreight to ocean is expected to remain a key factor in 2014/2015.

It not just costs that are resting on the minds of supply chain executives. We are seeing new emerging disruptive indus-tries coming to the fore in India, such as e-commerce and e-retailing. All of which is driving the way we think about the traditional supply chain models and the wider distribution model that is now required to serve a B2C and even C2C markets.

Growing Pains - Talent Crunch still the number one challengeIts been talked about for some time, but the rapidly evolving transportation and logistics industry faces a big challenge in terms of finding its next skilled workforce.

The Transportation, Logistics, Ware-housing and Packaging Sector in India currently employ’s around 7.3 million people. Over 90% of this talent pool is employed in the Road and Rail Transport sectors and with the expected growth,

this sector is continuously seeking new additional talent, whilst struggling to re-tain it existing employees.

Talent shortages are most prevalent in the established logistics hubs includ-ing Mumbai, Kolkata and Chennai as well as emerging hubs of Gurgaon, Vi-zag, Nagpur, Indore, Jamshedpur, Anwar, Ahmedabad, Bangalore and Ambala, and Kochi.

It’s an alarming trend that requires an Indian Industry and Government solu-tion. According to PWC, in their recent-ly released 2030 Transport and Logistics report, the logistics industry will need to find more than 17 million more workers over the next 10 years.

Moreover, it’s an industry that is just ‘not sexy’. When measured against other emerging sectors like Entertainment, So-cial Media, IT, the Logistics industry is just not seen as attractive to tomorrow’s workforce.

Working in logistics industry is usual-ly associated with working in warehouses, onships or roads, none of whichare con-sidered a favourable working environ-ment. Not helping this attractiveness is that Logistics is largely seen as a ‘blokes’ world. It’s a warning bell to Indian execu-tives given the success that is seen in de-veloped economies when effort is focused on building diverse workforces for all.

Supporting these talent challenges, Logistics Executive Group’s 2014 Em-ployment Market Reportfound that more than 61.55% of respondents agreed that it has become harder for them to source quality staff. This is significant up from 2012 and 2013.

The lack of trained manpower is cer-tainly being felt by the warehousing sector and this is not likely to let up in

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2014. In fact, by 2015, India will need approximately 35,000 to 40,000 ware-house managers– a real challenge given the lack of investment being made at the grass root in developing enough trained manpower.

With increasing supply chain complex-ity, improved warehouse management processes and operations with more de-manding customers, lack of attraction for new recruits arising from poor working conditions, relatively less attractive incen-tives and benefits, and the emergence of attractive alternate career options are hav-ing a significant contribution to the skill shortage in the Indian warehousing sector.

The operational needs for the industry as far as skilled labour is concerned, will undergo a tremendous change as a result of the changing economy. It will also raise training needs because of technological changes as well as evolving customer ex-pectations.

What companies need to do is start branding and gain popularity with job seekers. HR should work towards chang-ing this by offering a multicultural work environment and overseas training assign-ments and projects. Also the compensa-tion and benefits should be benchmarked and made as attractive when compared to other industries.

Identify New Labour Pool- Attract More Women to Logistics Sector The idea that women can be key contrib-utors is still a hard concept to promote in most sectors. Unfortunately this is par-ticularly true in the Supply Chain and Logistics industry, which is still largely male dominated.

It’s a tough task to attract women to transport and logistics sector but compa-nies that succeed will get access to new talent pool. This will increase gender and cultural diversity in work place and in turn will enhance innovation and creativ-ity. Logistics companies often struggle to increase their soft skills such as inter-personal skills and people management. Such skills are inherently attributed and predominant to women. Transportation and logistics companies should encour-

age appointment of women to top jobs in the C-suite.

There is a lack of reliable data in the market place but recent surveys would suggest that globally the numbers of women participating in supply chain and logistics are as low as 20% - 30%. Ac-cording to the industry group “Women in Supply Chain, UK” Women account for just 22% of the logistics workforce in England, compared with 46% in other sectors, and women hold fewer than 10% of the managerial roles in Logistics. In In-dia this number is likely to be lower.

However there is evidence that things are changing. The number of women taking up tertiary study in supply chain and logistics is higher than ever, with uni-versities globally running a wide range of initiatives to increase diversity.

At the same time, there has been an increased awareness that supply chain and logistics qualifications are no longer a male domain. The result being that there is a growing pool of talented women coming through at university level.

Most importantly companies need to modify their benefits and compensation structures along with the working condi-tions offered. They should provide flex-ibility in work hours, work-life balance programs (working from home and with flexible work hours), on-site child-care services, career-counsel and mentoring for women employees.

Employers should make the employ-ees feel the importance and values their daily job activities add to overall organi-zation success.

Aim for Strategic RecruitmentAccording to Madhuri Mathur, Gen-eral Manager, Logistics Executive India,“most of the players in logistics industry still rely on job posting and resume search to find right employees. They overlook the need to hire a good recruitment partner. A good recruitment agency develops their talent pool with networking and also account for talent outside current geography in the global market”.

Organisations that recognise and em-

brace the link between people, company performance and who actively invest in the next generation of talent manage-ment programs will lead the market in the long term.

Companies need top move quickly to adopt innovative hiring techniques and hire candidate from other industries, bringing in new ideas, skills and experi-ence. Employee referral programs should be made more rewarding and so too the employee retention schemes.

The blurring of the line between em-ployees within the organization and those outside of it is also driving talent man-agement changes, particularly around sourcing, strategic workforce planning and employee engagement. Given these changes, executives in leading companies are increasingly focused on talent man-agement issues and workplace alignment, recognizing that talent, wherever it comes from is their only sustainable competitive advantage.

In an effort to turn challenge into op-portunity, leading-edge organizations have increased their efforts to tap into wider talent markets and build a network of intellectual human capital engagement platforms that extend not only to em-ployees but also customers, partners and the public at large in an effort to create an extended connection to the potential talent.

Retaining best people for future growthPeople leave jobs for many reasons, and our 2014 survey shows major factor contributing to people leaving organiza-tion is Career Advancement (although it should also be said that when asked why they joined their new employer?, most respondents answered ‘Money’).

Most organizations do have employee retention strategies with mix success with training and development plays keying role in these strategies. However, only about 20% of people are satisfied by the training offered/arranged by the employer.

Generally people look at their supervi-sors to identify their strengths and weak-nesses, mentor them, and support them

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to improve on their weaknesses. While it is true that individual assessment should be carried out at least 2-3 times during the year by the supervisor, people have to understand they cannot simply wait for their supervisors to come forward and start talking about their career advance-ment or improving their skill sets. It is the responsibility of every individual to do self-assessment, self-realisation and awareness that “ I own my career and no one else “. Every individual must think “ How can I increase the value of my serv-ice to my company today “.

It’s point made by Ms Sheila Nara-vane, Executive Vice President, Logistics Executive India to potential candidates by asking individuals to think and assess “Do I make a valuable and powerful dif-ference to my company business?”.

Making sure we add real value, con-sistently, to our roles needs constant reas-sessment. It needs to become a habit. It is easy to get lost in the trench warfare of what we do every day, lose focus and get stuck in marginal-value activity. Sure it happens to all. From experience, Lo-gistics Executive Group makes a point of assisting candidates in this exercise, boost their confidence level and make them un-derstand that “it’s you, who is ultimately responsible to super charge your career”.

The key is to assist them to think for themselves - what is best career option at this point of time?, should they just fo-cus and put more energy on existing job profile?or it is the time to look for better options to advance their career?

Why best talent should join your companyThese days companies are using various sources to reach out to potential candi-dates e.g. social/professional-networking websites like linked in, job boards, inter-nal references and of course recruitment agencies.

Sure, the online jobs boards can reach a lot of people but they can’t accurately screen people resulting in a mass of un-suitable applicants and often causing the few suitable applicants to go unnoticed as their resume wasn’t key word friendly

enough resulting in no response from the employer (or an auto reject response from the jobs board) which is already pushing more and more people to move away from applying to jobs through jobs boards.Then what about social media….Well social media sites seem to have a limited lifespan, the artificial relation-ships that are quickly made will end just as quickly when the new flavor of month website comes into the limelight and peo-ple jump ship.

On top of this people are becoming much more guarded about the informa-tion they provide about themselves on-line. These talent attraction tools may have worked in the past have been suc-cessful, but here’s the news – its over!

Organisations need to deploy a range of talent attraction strategies. Job portals are just one method. Successful organisa-tions will use all of the talent attraction tools available to them – portals, career fairs, graduate programs, in-house HR and of course, third party providers.

The key to success with using any third party provider is to talk the same language. Working with a recruitment provider who doesn’t understand what you do and more importantly the skills that are therefore needed to make your organisation successful is a bit like play-ing darts – sometimes you hit bull eye, but mostly you miss.

Having a partner that understands exactly what you want beyond the job description, is able to assess the cultural fitand whom has a deep understanding about your industry and it’s challenges takes you one step closer to ensuring you attract and find the right person.

Specialist’s recruitment and search firms may cost a little more, but in the long run its money well spent as it saves time, ensures alignment of experience and will enable you to tap directly into an existing network that best fits your in-dustry.

Equally important is ensuring the ‘right-fit’ between the organization and the employee. The Logistics Executive Group 2014 Employment Market Re-port identified that a large part of the

reason employees leave their jobs is as a result of a mix-match between expecta-tions and that of the organisation culture or leadership.

More and more, organisations are not leaving this to chance. Use of psychologi-cal and behavioral testing like the ones used by Logistics Executive Group, My Profileand Profile XT Assessmentsare helping to identify questionable behav-iors, which might prevent the candidate from fulfilling their responsibilities.

In fact since 2012 to Logistics Ex-ecutive Group has experience more than 300% growth in use of it its psychomet-ric and behavioural test systems.

Employers are choosing to use psy-chometric testing during their recruit-ment process in order to help them get a better overall evaluation of a candidate and hopefully secure the best fit for the role. There’s some debate over the value of psychometric testing, but those who use it believe that it can give a more ob-jective overview of a candidate’s charac-ter, strengths, weaknesses and working style. Typically, a psychometric test will never be used in isolation, but as one component of a wider, integrated evalu-ation strategy.For employers, psychomet-ric testing is helping to gauge the future performance of a candidate and improve the employee retention by making more successful hiring decisions.

Training is critical There is no doubt that as the Supply Chain and Logistics sector grows, the success in this critical industry will only be achieved through an ongoing proc-ess of self-improvement and continuous learning.

It is the investment in tailored training programs that will ensure that organisa-tions are able to have the right talent to meet the changing rigors defined by best industry standards.

Ensuring staff remain loyal, proac-tive and engaged is an important factor which cannot be overlooked, if we are to achieve a return on investment made into skill based training programs and develop ‘home-grown’ talent.

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Employee engagement is the vital link to successful organisations for provid-ing an emotional connection between employees and their organisation. This emotional connection leads to improved performance (both individually and com-pany), increased productivity, better staff retention, improved customer service and greater staff loyalty.

According to L.R Sridhar, Managing Director for specialist logistics training firm, Mile Academy and the head of Logistics Executive India, training has become an imperative for supply chain and logistics organisations looking for a competitive edge.

“Our clients who have traditionally used Logistics Executive to source tal-ent, are now asking us to take our off the shelf supply chain training programs and personalized these for their local environ-ments in order to be more globally ready and to retain staff” said Mr Sridhar.

As a result of this upward swing in de-mand, Mr Sridhar added that the Logistics Executive Group is partnered with inter-nationally leading universities offering programs from ground floor basics like inventory management to MBA certified programs specialising in Supply Chain.

However with the costs associated to setting up organisation wide training programs, many companies are asking ‘is this a necessity?’. This answer is clear –well conceived and committed train-ing programs ensure staff will be better prepared to avoid problems, to minimize the damage caused by those problems, and to maximize their contributions and output. Without appropriate training, staff will be more likely contribute to se-curity risks through accidental behaviour but not necessarily malicious behaviour. These mistakes will less likely occur when a well-intentioned employee has been properly trained.

A long way to goWith the 2014 survey finding that skills and talent in the Logistics and Sup-ply Chain sector still in strong demand across most of India, costs will rise and turnover is unlikely to decrease any time

soon. Adding to thisis the emergence of Logistics and Supply Chain as a key driver in enabling organizational success and it increasing complexity means fur-ther executive talent will be required.

With Logistics Executive Group’s 2014 Salary Survey, along with other re-cent salary studies finding that on aver-age Executives will see estimated salary increases of between 15 and 20 per cent, the challenge to manage cost increases and invest in grooming talent has never been greater.

Latest projections by Logistics Execu-tive Group’s 2014 Salary Surveyshowed that middle and senior-level professionals are likely to get a pay increase in the range of 10 to 15 per cent. Similar increases could also been with respect to bonuses.

Sectors such as pharmaceutical, chem-icals and consumer goods sectors - that are largely dependent on domestic econo-my, are expected to see the greatest salary increases, closely followed by the Con-struction, Mining and Services sectors.

With inflation pressures and a re-bounding economy, companies need to be careful while carrying out appraisals since there is need to retain performers and provide them with solid salary ad-justments whilst being careful not to set unrealistic expectations that will overtime hamper growth prospects.

In many ways these challenges rest not only with the CEO and Business Manag-ers but also with Human Resources. The human resource function has to move fromits traditional hire and fire role to that of a strategic partner. It needs to sit front and centre at the executive table, along side supply chain, finance, opera-tions and other business centers that are not centers of profit for the organization.

The job of HR, as is the job of all such departments, is to ensure that the busi-ness gets the most out of its employees. Another way to put this is that the human resource management needs to provide a high return on the business’s investment in its people. This makes it a highly com-plex function - because it deals with not just management issues but human ones as well.

AuthorsDarryl Judd, Global Chief Operating Officer, Logistics Executive [email protected] more than 20 years of execu-tive experience in Aviation, Supply Chain and Logistics Transport Industry, Darryl has held executive positions within the airline & air-craft leasing/charter industry and major logistics organizations. He is regularly called upon to manage key human resources consulting projects and supporting business to drive changes, particularly around M&A activity and international executive management.© 2014 LRS Group Pty. Ltd. All rights reserved

Madhuri Mathur, General Manager – North, Logistics Executive Group India

Sheila Naravane, Executive Vice President, Logistics

Executive Group India