The supply chain skills gap is widening considerably, even over a short time span, severely impacting the competitiveness of the South African economy.

Rose Luke and Gert Heyns, researchers at the University of Johannesburg who conducted the 2012 Supply Chain Skills Gap Survey say, “Employers have indicated that, although operational positions are relatively easy to fill (63% average over both years), around 65% indicated it was difficult to fill tactical level positions.  Strategic level positions are becoming more challenging to fill with 63% indicating difficulties in 2011 and 66% in 2012.”

Luke says, “The lack of skills is apparent in that although, in terms of logistics performance, South Africa is currently ranked as number 23 in the world, the country’s ability to perform more effectively is largely hampered by logistics competence.”

Heyns adds, “This clearly indicates that skills are an issue within the country, and logistics skills in particular are hampering South Africa’s ability to trade both within the region as well as with other countries and regions.”

“For this reason, it thus becomes critical to identify the logistics skills requirements in South Africa, so that these acute shortages can be addressed to the benefit of trade in and with South Africa and the SADC.”

Skills that are in most demand

According to Barloworld Logistics’ 2013 Supply Chain Foresight report, the supply chain skills shortage is viewed as one of the top five constraints to South African supply chains and the single biggest constraint on competitiveness.

Topping the list of skills that are in most demand, identified by participants in Luke and Heyns’ research, are the following: Customer focus followed closely by Ability to plan and prioritise, and then Business ethics.

Luke says, “It is interesting that the top 10 highest ranking skills comprise mostly “softer” and broad management skills.” Meanwhile, Customer focus and the Ability to see the big picture are the two most important logistics awareness skills viewed as essential by respondents.

According to Luke and Heyns, the high importance placed on business ethics may be a reaction to a heightened awareness of corruption and mismanagement that currently pervades our society.

Adds Heyns, “The prominence of customer focus in the survey indicates that companies are realising just how important the fact-to-face aspect of the supply chain is.”

While highly educated and skilled individuals are desperately needed in the planning phases of the supply chain, the research confirms the fact that finding, for example, truck drivers who are also able to interact well with customers, has emerged as an area of great importance.

It is vital also to note that companies are recognising the role that ‘seeing the big picture’ plays in driving greater productivity and effectiveness across the supply chain.

Luke says, “Businesses are placing a high importance on getting all their staff to see the interrelatedness of what they do – that if someone drops the ball, it affects everyone’s work – and therefore to encourage people to perform even better; whether they’re the boss or the driver.”

Another interesting finding that merged from the study is the high importance placed on education, particularly by those working at an operational level. A total of 40% of respondents felt that high school education is a must for working in supply chain, further emphasising the importance of the education system producing what the economy requires.

Concludes Luke, “The results (of the study) imply that there are significant skills shortages in the supply chain industry in South Africa and that urgent interventions are required to attract and retain the skills needed to operate efficient, effective and competitive supply chains. These severe skills shortages have a significant impact on the competitiveness of South African supply chains and the ability to develop commerce with our major trading partners.”

Gert Heyns and Rose Luke’s presentation at the SAPICS Conference 2013 is entitled: An Update of the Supply Chain Skills Gap Survey in South Africa. Visit www.sapics.org.za for information and to register.