A value added future
September 1st 2011

UKWA recently announced the appointment of John Maguire as its new chairman. In this article, John outlines some of the challenges facing the association and the logistics industry

My appointment as UKWA chairman represents something of a departure from the traditional profile of a UKWA chairman in so far as I am the first representative from a company whose core-business is not third party logistics to take up the position.

My company – Flexi Narrow Aisle – is a supplier to the 3PL sector and, in many ways, my appointment reflects the fact that that the association’s ranks have swollen significantly in recent years thanks to an influx of a host of materials handling equipment and service providers.

Of course, the overwhelming majority of UKWA’s members remain third party warehousing and logistics services companies, but the increasing number of suppliers – as well as own account warehouse operators - who are drawn to the Association is helping to ensure that UKWA achieves its stated aim of becoming representative of the whole supply chain community.

Challenges

While there may be signs that industry is emerging from the recession, the logistics sector faces challenges on many fronts. For example, given that it currently employs some 8 per cent of the UK workforce, the logistics industry’s contribution to Britain’s economy continues to appear to go largely unnoticed in Westminster and the strategic importance of the sector to the whole economy remains seriously undervalued. This is something the industry must address.

Also, with an ageing workforce and a perception among those currently in education that logistics does not offer an attractive career path, the sector may well find itself facing a skills shortage in the near future. It is therefore vitally important that we begin to attract young people and bring a greater diversity of skills into the sector.

I believe most employers understand the importance of developing the skills of their workforce but, generally, supply chain companies have been slow to invest and, as result the Sector Skills Council for our industry – Skills for Logistics – faces a funding challenge. One of UKWA’s key objectives over the coming years will be to encourage members to engage with Skills for Logistics to develop logistics related apprenticeship schemes that will attract Government funding.

Traffic congestion too continues to be a cause for concern and, as a result, the thorny issue of road charging looks set to be one of the key transport debates over the coming years. UKWA will ensure that its members’ views are heard.

Evolving

The logistics industry is evolving rapidly and it is important that third party logistics service providers spot emerging trends and develop their service offerings accordingly if they are to make the most of the exciting opportunities ahead.

The overwhelming majority of UKWA members have already done so. Indeed, I wonder if the word ‘warehousing’ in the Association’s title is perhaps a little restrictive.While the storage of goods remains fundamental to our members, 3PLs undertake such a broad range of value-added services and are now such an integral part of their customers’ supply chains that somehow, ‘warehousing’ does not seem to do them, or the industry, justice. That said, having been through a very successful re-branding exercise recently, I can assure members that UKWA has no plans to redefine its image in the immediate future!

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