Environmental Scan Logistics Management,Road Transport & Warehousing Supplement

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1 ENVIRONMENTAL scan21 Transport & Logistics Industry Skills Council Environmental Scan Logistics Management,Road Transport & Warehousing Supplement

2 Logistics Management, Road Transport and Warehousing - Identified Workforce Development Needs Improvement to Australia s economic productivity will depend on a well integrated transport system that ensures safe and efficient mobility of people and goods. The economic, social and environmental consequences of congested and capacity-constrained supply chains are well documented. The expected productivity growth of the Commonwealth Government s $36billion investment in roads, railways and ports will only be realised if the Transport and Logistics workforce is able to respond to the skill demands of this investment. Occupations in Skill Demand Occupation / Qualification Truck Driver (General Freight, Delivery, Multi-Combination, Dangerous Goods Tanker) TLI227 Certificate II in Transport) TLI327 Certificate III in Transport) TLI427 Certificate IV in Transport) Justification / Evidence Skill shortages in this area are linked to an ageing truck driver workforce. As the average age of truck drivers is increasing, greater numbers are leaving the industry than joining. This has created an overall shortage of drivers in all classifications. 1 The poor image of the industry is also a deterrent to employment. 2 Competition from other industries that employ drivers, such as mining and construction, also has an impact on the skill shortage. As these industries accelerate their activity level after the global financial crisis, their requirement for truck drivers will also increase. 3,4 Increased freight volumes, technological upgrades, increases in distances travelled, and regulatory reform result in greater demand for more highly skilled drivers. This is compounded by the timeframes mandated by regulators that must be served before a driver can progress to a more advanced license class. 5 Regulatory reform of national Dangerous Goods training and accreditation requirements will come into effect progressively from This reform will assist skill shortages on an incremental basis as we move towards national harmonisation. At present, different regulatory schemes apply between modes and jurisdictions. This increases costs for employers and creates a barrier to employment mobility. 7 Skill shortages for DG drivers are also related to the skills and knowledge requirements of the job role. These drivers are highly skilled in the area of dangerous goods and are sought after by other sectors in the Dangerous Goods supply chain. 1

3 Occupation / Qualification Transport / Logistics/ Supply and Distribution Manager TLI517 Diploma of Logistics Justification / Evidence As freight volumes return, logistics employers and operators seek to improve operational efficiencies and gain competitive advantages. This translates into high demand for professional Transport and Logistics Managers. Bus Driver TLI327 Certificate III in Transport) Forklift Operator TLI327 Certificate III in Transport & Logistics (Warehousing & Storage) Warehouse Administrator TLI417 Certificate IV in Transport & Logistics (Warehousing & Storage) Driving Instructor TLI4127 Certificate IV in Transport Driving Instruction) Businesses are seeking greater control over their operational efficiencies, including planning and forecasting abilities, which will lead to this year s increased demand for highly skilled T&L analysts, demand planners and coordinators. Operations Managers remain sought after in all areas of logistics. There is evidence of employers considering options for employing overseas applicants with comparable skills. 8,9,1 Skill shortages within the bus industry are less complex than those affecting the broader truck industry. The ageing workforce issue is pressing as there is a greater proportion of workers closer to retirement age. 11 As patronage on buses has risen sharply, so too has demand for bus drivers. Challenges remain in attracting sufficient numbers of drivers, in particular for metropolitan areas. 12 Forklift Drivers are in demand by many industries, which means that drivers are mobile. More lucrative wages and conditions in growth industries are creating pressure for Transport and Logistics employers. A particular shortage is evident for specialist forklift skills. 13,14,15 There are skills shortage associated with the introduction of new licensing certification in 29. The new system is being introduced gradually. There is evidence of industry concern about the impact of cost and time increases. There is a high level of casualisation of this occupation. 16 This role is a critical component of the efficient and productive operation of warehouse facilities. Personnel in these roles have a broad range of logistics and distribution skills. They are highly attractive to many industries, including the provision of support services in the Construction, Retail and Resource industries. 17 The Transport and Logistics Industry is where people develop their skills before moving on to more attractive options outside the industry. This is a common career path and results in high turnover in this occupation. 18 This shortage is primarily associated with Heavy Vehicle Driving Instructors. A shortage of skilled Driving Instructors is related to trends elsewhere in the industry that affect the labour pool from where instructors are drawn. Often these personnel can be attracted back into operator roles when remuneration conditions are buoyant. 19 2

4 Barriers to Overcoming Skills and Labour Shortages Primary barriers to labour attraction are found in the generally poor community perception of the industry. For the Road Transport sector there are widely held views that the industry is dangerous, fatiguing and has little potential for career development. The high profile of accidents and fatalities involving transport drivers compounds this image. For warehousing the story is slightly different on the basis this aspect of the industry is largely hidden from the public eye, school leavers and other young workers Logistics and management roles have better prospects of attracting workers, largely based on improved pay and conditions in these fields and a view that these skills are portable across and between transport organisations. Solutions and Potential Sources of Labour Logistics Management, Road Transport and Warehousing need to overcome their poor public profile to attract the next generation of drivers and warehouse operators. Safety is a critical factor in this profile; improved results in vehicle and operator accidents and deaths will need to be achieved to shift perceptions. Labour supply in these sectors can shift quickly, especially when mining and other commodity booms attract large numbers of drivers across state borders. To limit the negative impact this has on Transport and Logistics businesses, the total pool of trained and available driving personnel needs to be expanded. 3 The industry needs ways for workers to acquire heavy vehicle driving licences in a more compact time frame so that the labour pool can be expanded at a pace that will meet expected industry growth. 1,11,16 Employment Outlook for Transport, Postal and Warehousing. Department of Education, Employment and Workplace Relations National Workforce Planning and Skills Strategic Action Plan. Australian Transport Council. October 29. 3,7,8,12,13,17,19 Transport and Logistics Environmental Scan 21 Survey. Transport and Logistics Industry Skills Council State of the Sector Report. Queensland Resource Council. December 29 5 Australian Trucking Association Submission to the Heavy Vehicle Driver Competency Working Group COAG National Licensing Steering Committee. View at: 9 Supply Chain Review, Q4, 29 1,15,18 Hays Logistics Reports, January Licensing News Line, June 29

5 Logistics Management, Road Transport and Warehousing Qualifications Update Progress - 29 Over the past 12 months, large reforms were made to the Transport and Logistics Training Package. Qualification packaging rules were overhauled to ensure that they more accurately reflected workplace job roles (existing qualification structures were de-nested). In addition, a range of regulator-endorsed changes for drivers and other high-risk workers were embedded into qualifications. These changes reflect DEEWR policy, which aims to ensure that Training Package qualifications meet occupational outcomes. Changes were made incrementally across the entire Training Package based on industry priority areas, COAG imperatives, and national licensing in the transport industry. Stand-alone qualifications for Freight Forwarding were developed in response to industry demand and advances in this sector. A Skill Set for Road Tunnel Operators was developed based on industry feedback. This new Skill Set provides the foundation for nationally consistent training for this sector. Further qualification developments are expected in this area because of the increase in transport tunnels in Australia. In response to a National Regulatory Taskforce initiative, eight units of competency for taxi drivers were developed. These units provide the framework for harmonisation of taxi licensing nationally. Regulator-endorsed heavy vehicle driver licensing units were developed in response to COAG s agenda to align vehicle licence training with the Australian Qualifications Framework (AQF). These units will enable heavy vehicle licence requirements to be embedded into relevant Training Package qualifications. 4 In response to industry and Defence requirements, Logistics Skill Sets were developed to reflect occupational outcomes in national training arrangements. The Skill Sets provide specialisation for: Integrated Logistics Support Practitioner, Logistics Sustainment Practitioner, Integrated Logistics Support Inventory Controller, Logistics Inventory Controller, Logistics Configuration Management, Integrated Logistics Support Management, Logistics Sustainment Management, Logistics Product Management, and Logistics Executive Management Training Package Uptake Road Transport, Logistics and Warehousing

6 Continuous Improvement 21 The continuous improvement register for the Transport and Logistics Training Package (excluding rail) has been developed in response to industry-identified needs for key transport and logistics occupations. The continuous improvement work program is managed by John Gilbert (Road Transport and Warehousing) and Kerrie-Anne McPhee (Logistics and Stevedoring), assisted by a range of steering committees and technical reference groups. Continuous improvement priorities for the next 12 months include revision of qualifications that were not included in the version 3 update of the Transport and Logistics Training Package. Focus areas will include Stevedoring, Warehousing and Logistics qualifications. A Diploma of International Freight Forwarding has been developed and was endorsed in April 21. This qualification meets industry demand and aligns to the internationally recognised FIATA (International Federation of Freight Forwarders Associations) Diploma. New qualifications for Road Transport Yard Operations (Freight Handler) and Open Road Operator skill set will be developed in response to needs identified by the industry. The Cert I, II, II Transport and Logistics (warehousing and storage) will be reviewed to meet the new National Quality Council (NQC) qualification packaging rules. The warehousing qualification will be amended to reflect core and elective units and aligned to discrete and identifiable job roles. A road safety skill set will be developed. This skill set provides a basic introduction to road safety. It is primarily intended for use by school students (year 1 through to year 12) to equip them with a broader knowledge of the underpinning concepts of road use and road safety. Driving Operations and warehousing units of competency will be reviewed to account for recent developments in these sectors. As part of this program of work, a Diploma of International Freight Forwarding will be developed in response to the emergence of this specialised job role and a priority need identified by the industry A new Certificate II in Furniture Removal will be developed to align with the job role of Furniture Removalist. This initiative is underpinned by strong industry support, and will facilitate entry into this multi-faceted industry sector. 5 Existing qualifications relating to Logistics will be revised to better reflect current job roles. The restructured Certificates I, II, III, IV and Diploma, will be designed to support the range of job functions that can be undertaken by logisticians in different environments across the Transport and Logistics industry. The Materiel Logistics qualifications (Certificate IV, Diploma and Advanced Diploma) will be updated to align with new Training Package rules, and to ensure that environmental sustainability skills are appropriately reflected. These qualifications align with Logistician and Management roles and support all of life cycle (procurement, maintenance and disposal) for transport and logistics major assets. Materiel (from the French "matériel" for equipment or hardware, related to the word material) is a term used in English to refer to the equipment and supplies in military and commercial supply chain management. A Diploma and an Advanced Diploma of Deployment Logistics will be developed to support Deployed Logistics Operations Management and Senior Management roles. These qualifications relate to deployment, construction, maintenance and movement of equipment and personnel for an identified purpose to meet industry and Defence needs.

7 The Certificate I, II, III and IV in Stevedoring will be restructured. There will be a focus on alignment with current job roles and appropriate inclusion of environmentally sustainable units; and this industry sector is keen to strengthen qualifications in order to enable career enhancement and underpin workforce development. If you would like to comment on these developments or require more information please contact John Gilbert - or Kerrie-Anne McPhee or This supplement is a companion to the 21 Transport and Logistics Environmental Scan. The full document can be found on the Transport and Logistic Industry Skill Council website The Environmental Scan aims to act as an early warning system for the Transport and Logistics Industry, government and the national training system. It provides contemporary and projected advice on the condition of Transport and Logistics sectors, their workforce planning and development needs and, in particular, their projected reliance on the national training system in the next 12 months. 6 The next Transport and Logistics Environmental Scan will be published in February 211

8 Transport & Logistics Industry Skills Council Level 15, 628 Bourke Street I Melbourne VIC 3 t: e:

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