Half of all logistics sector jobs to change or be displaced with Industry 4.0

THE logistics sector, already burdened with still-snarled supply chains and surging demand for labour, has yet another hurdle to cross, with at least 1 in 2 job roles expected to undergo a medium degree of change or displacement in the coming 3 to 5 years.

According to the sector's Jobs Transformation Map (JTM) which studied a total of 56 job roles, 30 job roles (54 per cent) will experience at least a medium degree of change with the adoption of Industry 4.0 (I4.0).

The remaining 26 job roles are expected to change incrementally, said the JTM, which is championed by the Economic Development Board and supported by the Ministry of Manpower, Enterprise Singapore (ESG), SkillsFuture Singapore and Workforce Singapore (WSG).

In a media briefing, Minister for Manpower Tan See Leng, who is also Second Minister for Trade and Industry, acknowledged that supply-chain disruptions have hit local firms. "The reassurance that we want to give everyone is that at MTI, we are working with all the different agencies and also working in sync with the Ministry of Transport ... to ensure that our supply-chain disruptions are being minimised," he said.

"With regard to the impact of costs, we're looking at this very closely and if need be, certainly the government would look at reviewing which areas most need support; we will then tailor it accordingly."

Meanwhile, companies need to step up their automation efforts while ensuring that upskilling and reskilling remains a sustained and continuous effort.

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He also noted that mature workers form a "significant proportion" of the logistics workforce and they "may suddenly feel that the gap between their current skill sets and the skills required for I4.0 roles seems to be too huge".

ST Logistics' CEO Loganathan Ramasamy, who was also at the briefing, said: "While we put in money to upgrade our facilities and systems and bring autonomous systems, it's equally or more important to make sure that our workforce is ready to use this technology to enhance productivity. I think that is a critical focus of the company."

ST Logistics, in addition to automating its processes, tapped the Career Conversion Programmes (CCPs) by WSG to equip 38 workers with skills; they have taken on new tasks over the last 2 years as a result.

As of September 2021, close to 650 workers from 226 companies have tapped the various CCPs to support new hires and redeploy existing workers to take on new roles.

Added Dr Tan: "Of course, it depends on the individual's current level of skills, but I would like to encourage all workers to map out the skills pathway, together with their supervisors and employers. It does not have to be made in leaps and bounds."

Workers above the age of 40 made up 63.1 per cent of local workers in logistics in 2019; those above 55 accounted for 27.5 per cent.

"You can consider small and measured steps because these small and measured steps also signify good progress. So for instance, warehouse assistants or storekeepers who used to manually handle warehouse items and stocktake the items can start by learning to use the automated storage-retrieval systems and autonomous robotic systems ... and also learn to use smart-inventory counting solutions to conduct inventory checks and stock picks," said Dr Tan. "The next step would then be to learn how to troubleshoot these systems and subsequently oversee the setup configuration as well as the customisation of these systems."

Roles that may be disrupted generally deal in transactional tasks, which are manual, labour-intensive and repetitive. Examples include materials-handling equipment operator and warehouse assistant roles, as I4.0 solutions significantly reduce the need for manual sorting, routing, loading and unloading of cargo items.

Meanwhile, existing job roles such as freight inspector, import/export specialist, transport executive/manager, inventory management manager and vertical product manager will be augmented by technology. Workers in these roles will also be required to oversee, customise and manage I4.0 solutions.

Separately, new roles that were traditionally not found in the logistics sector are beginning to emerge with technology adoption. These include data-analysis and data-management roles, software development job roles, and digitalisation and automation job roles.

Another example of a company that has leveraged I4.0 technology is food distributor and cold chain logistics provider Lim Siang Huat (LSH).

With ESG's Enterprise Development Grant, LSH rolled out a goods-to-man loose-picking automated storage and retrieval system, which is integrated with its warehouse management system and pick-to-light system. Its picking accuracy has since risen to 99.9 per cent, and warehouse operators see time savings of 50 per cent for each job order.

In the longer-run, logistics companies need to embrace I4.0 technology transformations so that they can move towards customer-centricity, build agile and resilient supply chains, and innovate, noted the JSR.

Businesses will have to simultaneously build on their technology and workforce capabilities in order to transform effectively.

Other initiatives logistics companies can consider tapping include the Industry 4.0 Human Capital Initiative by WSG and the Singapore Business Federation, and the Support for Job Redesign under Productivity Solutions Grant by WSG. Employers with Company Training Committees can also partner NTUC to develop their customised business transformation plan through the Operation & Technology Roadmap process.

Read more: Demand for labour in logistics sector still on a tear thanks to crazy sales