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Review of Vision 2025 Future Challenges and Opportunities facing the logistics sector

 

 

Envisage the logistics sector in less than 10 years from now...

  • On-demand commerce a reality
  • 30% increase in peak public transport demand
  • Heathrow 3rd runway almost operational
  • HS2 and Rail North operational
  • Mobile robotic solutions - UAV/drone deliveries
  • Driverless trucks - platoon convoys commonplace
  • Explosion of Big Data
  • Gigabit mobile internet - 5G & beyond
  • Average human lifespan around 90 years
  • 2040 - end of petrol and diesel engine production
  • Carbon-free distribution - low-emission electric vehicles
  • Extensive zero-emission city-centre tariffs
  • Trailblazer established - apprenticeships a respected career route

 

What skills and knowledge does the logistics worker of 2025 need ?

 

Is your business ahead of the game?

Read our full report on the 2025: Logistics Vision review event held on 30th January 2018.

 

2025: The Logistics Vision First Review

Tuesday 30th January 2018. Spring Grove House, West Thames College

 

Two Government Departments - national operator masterclass by Ocado

 

2025: The Heathrow Logistics Vision Summit January 30th 2018

The ‘Operator view’ was at the heart of the Heathrow January full house event.

LSA chair Carl Lomas opened with a big interaction of issues in the Heathrow hot-spot. Two govt depts. Talked passion from DWP and DfT before a spellbound masterclass on final mile food by Ocado national fleet manager Graham Thomas. DfT policy head Philip Martin focused on the Heathrow & East Midlands Hot Spots of logistics, while DWP JCP Western region head Nigel Yates spoke recruitment challenges for the logistics sector. Graeme Baker exposed the myth of levy and detailed the apprenticeships with an interactive stairway of transport quals before James Billingham spoke 2025 vision, Heathrow 3, HS2, explosion of home delivery and next-generation workforce.

 

 Event detail - 2025: The Logistics Vision Summit review

 2018 news jan vision 2025 tracy aust

Welcome to the host site at the heart of logistics by Tracy Aust, Principal, West Thames College

We are looking to identify with and work with employers using Logistics Skills Alliance (LSA) as a driver to move logistics forward on the agenda. Taking the opportunities and delivering a skilled workforce to leave behind a greater legacy for logistics.

 

2018 news jan vision lomas

 

LSA Chair Carl Lomas - Challenge and issues - Pineapple as a showcase of supply chain excellence - Heathrow and the South East geographic hot-spot for logistics – the operator's view. A frank audience exchange of key issues in logistics today.

2025 vision. The audience gave introductions with gusto as they offered what was their issue now for the industry and what 2025 may bring? Answers from the audience gave voice to issues from vehicle choice of alternative fuels, zero emission, driving workforce, encouraging the younger to join, seamless driving infrastructure & levy challenges to how best to convert to best practice.

Volvo – charging infrastructure

DHL green vehicles, pedal bicycles will be strong in 2025 final mile

Phil Steal – global air from domestic, eager to move forward on diesel – younger workforce for future vision

Andy Frost, Knights of Old – future fleet and a workforce trained to drive it

CAIC (formerly Map Mechanics) – solving logistics through geography – success through e-cargo & bicycle.

Audience agreement that ‘the Customer is much more mobile than before and this is challenging. 2025 needs to be a single supply chain which is customer concentric’.

 

Graeme Baker The Logistics Skills Question

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The Stairway map!

A lot can happen in a short time and I am going to take a dip into how we plan to use our people and how this effects our industry in 2025.

What skills and knowledge does a Logistics worker in 2025 need?

You can find the professional stairway development map here

2018 news jan vision stairway

It maps the three streams - warehouse, vehicle and express - from operative level 2 to degree level 6. The qualifications and titles are available in a shopping bag for operators; match some warehouse with LGV heavy vehicle, then add some management quals and you have a robust valid solution to your levy spend needs in the digital payment world of BIS IFA. The stairway is a clear signpost and LSA are at your disposal to sort the finding.

 

Joanna Daly

What is this thing called levy? - The levy lock-down interview solution.

2018 news jan vision 2025 jo daly

Joanna spoke passionately about the funding solutions for national and regional operators in the new horizon of digital payments from BIS IFA. The quals from warehouse operative to degree manager logistics are funded by govt for levy payers,

It is a hard path to follow and complete and I am here to help you.

Jo covered issues around 20% of the job training, challenge of young people recruitment, what is this thing called logistics? An overview detail in the handout packs on awareness of the sector.

Logistics and the apprenticeships. More than 600 standards, Jo explained the paths in logistics, Warehouse, LGV and Express, govt achieving the target of three million apprentices.

You must not write off levy, if you are in logistics we want to sit down and solve the fit of standards for you and explain the funding between non-levy and levy payers. Lets talk T-levels as a young start stepping-stone of fifty hours with you.

The next step is to call and lets us arrange a free levy lock-down interview. This email address is being protected from spambots. You need JavaScript enabled to view it.

 

 

Nigel Yates DWP JCP West regional geographic head for employer engagement talks logistics for LSA Heathrow logistics summit.

Nigel Yates DWP - Jobs that Move A national campaign for logistics recruitment.

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Nigel spoke labour market challenges facing the Transport and Logistics sector as they appear to JobCentre Plus.

We are all saying the same thing! We all need to understand the industry, apprenticeships and the workforce. Across other industries we see similar challenges. DWP is here to support and upskill not only our staff but the general workforce. Industry knowledge we give to our colleagues assists the discussion with Claimant candidates. Job centres can open up as an employer hub for employers to tell the unemployed what jobs are available. Focus weeks, are sector specific engagements between DWP and JobCentre Plus. Raising the sector profile at a national level as well as the support and opportunities we have for employers looking for staff within West London and the LSA Heathrow geographic.

West London (Heathrow) is the largest job centre in London, every job centre has an employer team and a partnership manager. They have a specialist team working with the airport and cover advocacy for airside recruitment.

JobCentre Plus recognise that there are other barriers to introducing people to this thing called logistics, parents can be a barrier on advice on the sector. ‘There is also a ‘blank’ on the knowledge of apprenticeships. DWP are encouraging career vision for logistics and apprenticeships from age 14 in schools around Heathrow.

 

 

Philip Martin, Head of Freight Policy, Department for Transport Women in Transport

2018 news jan vision 2025 philip martin dft

I deal with Road freight, your man in the department. Running the low carbon truck trail, low carbon review but the biggest challenge is dealing with the driver shortage, not just truck drivers.

We need to look to train up other types of people from ex-military workers, non-licence holders and adjust the issue of gender balance in this industry.

Industry estimates a shortage of around 45,000 drivers. 75,000 drivers expected to retire in the next 10 years. EU nationals working in the UK include, 60,000 LGV drivers , 90,000 warehouse workers, 22,000 forklift truck drivers. 99% of LGV drivers are white males, with an average age of 55. Only 2% of drivers are under 25.

Gender balance Only 6% of logistics sector employees as a whole are women. Only 1% of LGV drivers are women. Women make up 47% of the UK workforce

Diversity matters as it helps in all areas of the business it improves the economy. DfT has pushed for apprenticeships and a gender parity by 2050. 2 million single parents are available and want to work, examples of this with TfL and the Gingerbread program. Pre-employment training; transferable skills; understand the workplace and have access to childcare. Work placement offer agreed personal learning development and self-learning programs.

Let the logistic sector tap into this resource and tackle driver shortage and gender balance as an opportunity for employer.

 

Lunch followed by a who’s-who of hot-spot logistics in a tight network opportunity of talk between warehouse, wheels and the exploding express world of e-retail. ‘Let’s talk final metre not final mile!’

 

An Operator's View

A full house, spellbound audience listened to Graham Thomas – National Fleet Manager, OCADO talking food home delivery.

 2018 news jan vision thomas small

 

Evolution of shopping – taking the hard work out shopping for the customer.

Do your shopping when you like, on the move, app saver for your basket, repeat shopping or even regular order. We are not just a customer innovation but a sophisticated logistic hub in the world driven by technology and our drivers. Recognised by the retail sector as well as the public.

Online shopping is not the future, it is the present.

We are proud to be involved with food recycling and only 1 in 6,000 items goes to waste. Working with local food banks around our hubs means we can support local organisations and give them longer shelf life food. Carrier bags are grey as this colour is easy to recycle and we actually buy back our clients plastic bags as well as those from other supermarkets. Going the extra mile we recycle our vans. At the end of a vehicles life we dismantle the van and 95% of those parts are recycled.

Road safety is equally important and with 1500 vans, 900 based in the M25 we put all drivers through driver safety training. Fuel efficiency, road rage and safe road awareness is not just for the driver but for all road users. We provide a ‘young drivers magazine’ for schools introducing driving them, it is important to be a good neighbour.

Ocado Optimising Fleet efficiency has created the lightest vehicle possible to use; increasing our payload on these vehicles by 47%. A 5ltr washer bottle only carry’s 2 ltrs of water. No passenger seat, no carpets anything not needed is not in the vehicle. Using a double decker trailer means twice (4.9mtr tall) the capacity payload but means less vehicles on the road. Even the fridge unit is at floor level to give clearance under bridges. We have saved over 575 tonnes of carbon each year since 2013 as we choose to drive in the most efficient way. Encouraging drivers to drive efficiently has made financial savings and improves driver conditions.

The future, will it be diesel or not?

Diesel is diminishing. Bio fuel interest for heavy’s and hydrogen for 3tonnes. Telsa, Merc and BMW all working towards electric solutions but I think it will depend on the geographic delivery needs. Our solution in the next few years for us, will be the use of hybrid vehicles.

Final mile or as it was said ‘final metre’ delivery food to the door.

The Ocado story. The Evolution of shopping

 

 

Warrant officer, John Rock RLC Reservist London

The industry has a wealth of technically skilled and logistic trained individuals who can work alongside the Reserved military to the benefit of both the company they work for and the military and vice versa. The Reservist is further trained throughout their military career which dovetails into the industry skills needed.

A route to heavy licence and getting paid for the experience.

LSA Chair Lomas asked the question, ‘Heathrow warehouse person, joins reserves and gets access to free heavy licence training,?’ John replies, ‘Yes it's true and they get paid for the experience.’

 

2025: The Logistics Vision: James Billingham LSA - ‘Logistics 2025

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Real time consumer demand and technological transformation is a here and now for the sector. In less than 10 years, by 2025, logistics companies face a multitude of further opportunities and challenges ranging from the future of fuel, clean air and insatiable customer expectations.

James continued,

One of the key challenges is how companies can best harness and make use of technology and to do this it has to think about one of the biggest challenges faced by all companies – The Logistics People Challenge; How can companies train and develop young people whilst adapting the needs of older workers ? How can logistics companies recruit and attract people to a sector that is misunderstood? Logistics is not all about goods but all about people . It will mean an investment of time and money but if not met headfirst then it may be too late’ Learn what your company can and should be doing now to prepare itself for the next decade.

 

Logistics 2025 - Envisage a logistics sector in less than 10 years.

 

- HS2 - 30% shift to use of public transport by 2025

- Heathrow runway 3 almost live.

- On-demand commerce a reality , Workforce numbers with The exploding retail shift from bricks and mortar

- Clean air will be key, the future of fuel, ULEZ, electric power and the stigma of diesel.

- Will mobile robotic solutions, driverless trucks and unmanned aerial vehicles/ drone deliveries be a reality?

Don’t wait until 2025!

 

2025 Summit Review Summary: Carl Lomas – Chair

 - Logistics 2025

- The workforce – Stairway the levy Lockdown

- The operators view summary for Heathrow, SE and National

 

The next key task is organise your free-of-charge levy lock-down interview - Abigail Tovarloza on 020 832 62079 or e-mail This email address is being protected from spambots. You need JavaScript enabled to view it.

 

 

 September 2017 summit re-cap

2017 news sep launch aust

Tracy Aust sets the agenda for logistics at the sold-out full-house LSA event in September 2017

The September event was a sell-out - standing-room only. Levy lock-down as apprenticeship myths were explained to a full house - a multi-modal audience from DB Schenker to road and air cargo. Opened by West Thames College Principal Tracy Aust, speakers included Peter Binham TfL talking FORS, CLOCS and LoCity clean air, Neil Impiazzi SEGRO, multi-level sheds, James Billingham LSA and Alex Farkas DWP educating the unemployed to understand logistics opportunities.

For the 1st summit speaker notes/précis and photos, you can read our article here