World Bank – Global logistics labour shortage worsening?

The World Bank has published a report suggesting that the global shortage of logistics-related labour is a major problem that could get worse in the next five years. The report calls for a major expansion of skills development and training initiatives in developing countries.

The World Bank study authored by Prof Alan McKinnon, Christoph Flothmann, Kai Hoberg and Christina Busch combines a new survey with the World Bank Logistics Performance Index Survey. It found that shortages across the world range from a lack of truck drivers to issues in filling senior supply chain management positions.

The report by the World Bank shows that respondents in developing countries point to the supervisory level for the worst perceived skills shortage. In developing countries, skill shortages were seen at all levels but at a lower level.

The report has outlined a need for a “major expansion of logistics training and skills development initiatives in developing countries.”

“Developing regions are lagging behind developed countries in terms of training budgets, course content, and quality of the educational experience and sources of training,” it said.

The study by the World Bank also proposes a short guide for policy makers and international organisation intervening to support logistics improvements. It consists of a logistics competence maturity matrix that classifies countries into three categories based on their LPI competence index (basic, intermediate or advanced).
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