An fbKJvNeWgj c0jGj4Opu7BtGSfdIkuXNW0I6 JenwrZdJa 0sT0OAYBFfjdxkuZ2qwtEjLe8LhtOOJH2bvnJ51vH2UWDQziiLcPgvUXAVdTcJIY5wotEzdfrlaY4
An fbKJvNeWgj c0jGj4Opu7BtGSfdIkuXNW0I6 JenwrZdJa 0sT0OAYBFfjdxkuZ2qwtEjLe8LhtOOJH2bvnJ51vH2UWDQziiLcPgvUXAVdTcJIY5wotEzdfrlaY4
2023 EDITION
Logistics
Global HR Trends
2
3
Index
Introduction 5
Chapter 1
Overview of the logistics sector 6
Economic Value 7
Market Growth 10
Strategic Role 11
Chapter 2
Innovation and reputation 12
New Technologies 13
Public Image 16
Chapter 3
Labour market 18
Labour Shortage 19
Qualified Personnel 21
Incentive Programs 23
Wages and Benefits 24
Working Conditions 26
Training 28
Gender Gap 31
Chapter 4
Responsibility and sustainability 32
Environment 33
Society 37
Economics 38
Chapter 5
Gi Group Holding’s conclusions 40
Towards the Future 41
Who we are 44
Infographics 46
Appendix 48
Methodology 51
4
5
Introduction
Logistics plays a fundamental role in the Logistics has experienced striking growth, that is
development of all countries in the world, expected to continue over the coming years.
maintaining economic growth, and enhancing
national competitiveness. Until a few years ago, Although the potential of this sector has been
however, Logistics was often taken for granted, widely acknowledged, continues to suffer from an
and its processes and activities tended to remain inaccurate portrayal in the public eye, where it is
invisible to most. viewed as a physically demanding sector in which
manual or unskilled labour prevails. This general
The Coronavirus pandemic that hit the planet in belief makes the industry look unappealing, and
2020 set off a chain of events that made the is among the causes of the severe labour shortage
world think of the industry in a very different that is affecting the sector. To overcome this
way. Logistics, transport and warehousing moved issue and attract workers, Logistics companies
from being necessary costs to playing a major are implementing different policies, ranging from
role in the strategy of organisations in economic higher salaries to benefits. An approach that has
systems. In the last few years it was necessary led current employees to greatly appreciate their
to evaluate how we consume, how products are quality of life at work.
distributed to us, and how much we can control
the availability of supplies and commodities. Finally, in recent years, the logistics sector has
also begun to pay particular attention to the
This report aims at illustrating the active role environmental impact of its activities.
of Logistics, offering an exhaustive and sound Green solutions are flanked by social sustainability
overview of this sector. The following pages are policies, with a general improvement in working
the result of a rigorous study conducted in 6 conditions. However, the environmental and
countries (China, Brazil, Germany, Italy, Poland, social responsibility measures have to reckon with
and the United Kingdom) that brings together growing costs resulting from the current energy
updated public data on the industry, interviews crisis; a hard trade-off between environmentally
with opinion leaders and an International Survey*. friendly solutions and economic performance.
The research reveals a clear and coherent picture, This report clearly shows that Logistics is going
in which Logistics stands out as a strategic through a fundamental transformation, which
sector for competitiveness of all markets and is already setting the stage for the future development
the precursor of all other productive activities. of the sector. Thanks to new technologies and
Thanks to the deployment of new technologies innovations, Logistics will soon be increasingly
and the development of the eCommerce cluster, crucial for economies and societies worldwide.
.1
Overview
.2
of the logistics
.3 sector
Group “The sector is witnessing a constant growth due to numerous
Gi
factors. Above all, the global economic growth and the
expansion of a specific consumption model, which is based
both on mass customization (thanks to production systems’
sp flexibility) and on a hyper fragmentation of the distribution
eaks u
p
Logistics plays a fundamental role in the growth and economic development of countries. .1
With a global market worth of 8.6 trillion U.S. dollars, Logistics has experienced
exponential growth in recent years. The sector is estimated to keep growing in the near
future, proving to be a strategic industry with a strong positive impact on all productive
.2
activities.
Economic Value .3
An essential role in economic systems
worldwide
In 2021, the global logistics market was worth almost 8.6 trillion U.S. dollars, 53%
of which refers to outsourced activities.
Although these three markets account for the main share of logistics expenditure, there
are also interesting developments in other regions, particularly in the Middle East and
North Africa.
The relevance of Logistics for economic systems is confirmed by the value of the industry
in relation to the gross domestic product. In particular, in China Logistics accounts for
13.7% of the GDP, while in Brazil it reaches 10.8%. In Europe, Poland stands out (9.3%),
followed by the United Kingdom (7.7%), Italy (7.7%), and Germany (7.3%).
Source
Country comparisons: Logistics market value
CLO based on
Armstrong & (as a percentage of GDP)
Associates and
AT Kearney
CHN BR PL UK IT DE
The logistics sector plays a significant role also in terms of people employed. In developed
economies, the percentage of people employed in the logistics sector is generally in the
range of 5-10% of the total workforce.
The data show that in China the number of workers employed in the logistics sector
is equal to 17.8 million. Brazil follows with 4.8 million people employed in the industry.
As regards the European countries considered, Germany has 1.8 million citizens working
in Logistics, followed by the UK (1.6 million), Italy (1.4 million), and Poland (1.1 million).
Source
Country comparisons: people employed in Logistics
CLO based on
Armstrong & (millions)
Associates and
AT Kearney;
ILO
17.8 4.8 1.8 1.6 1.4 1.1
CHN BR DE UK IT PL
Overview of the logistics sector 9
10 Chapter 1
.1 Market Growth
A positive trend, meant to last
.2
For several years, the logistics sector has been growing worldwide. Despite the
pandemic and its impact on the markets, interest in Logistics has risen in the last
three years, contributing to the growth of the industry in economic terms.
.3 In 2020, the global economic value of Logistics was 8.2 trillion U.S. dollars, but by the
end of 2022, it is estimated to reach 9.0 trillion. This trend is expected to continue
in the near future. In particular, in 2024 the economic value of Logistics is expected to
grow by 10% compared to 2022, reaching 9.9 trillion U.S. dollars.
Two main factors form the basis of the growth trend: rising freight volumes, and higher
values of logistics services due to recent developments, primarily the expansion
of eCommerce sales.
The growth potential of Logistics is also perceived by the general public. The results of
the survey show that 57% of respondents believe that the sector is destined to grow
in the next 5 years, while only 6% assume there will be a decrease.
6%
Source
CLO-INTWIG,
Growing compared to today
International 37%
Survey Stable at today’s level
57%
Overview of the logistics sector 11
Strategic Role .1
The effects of the supply chain issues that arose following the outbreak of COVID-19 .3
on macroeconomic indicators and business activities validate the importance of a solid
logistics sector to guarantee the stability of economic systems.
To keep playing this strategic role, supply chains need to prove to be both resilient and
sufficiently flexible to be able to face rapid changes.
leaders
“It is necessary to strengthen OP
“Recent events, from the
pandemic to the blocking supply chain resilience, increase
of a major shipping route, the ability to predict the sp
made clear how key the role development of complex events, eak up
of Logistics is” and maintain a level of flexibility
that allows us to respond to
rapidly changing situations”
12 Chapter 2
.1
Innovation
and reputation
.2
The logistics industry is enriched by innovation and new technologies that are .1
promoting its growth. Nevertheless, Logistics is still publicly perceived as a physically
demanding sector, where manual, strenuous labour prevails. A belief that is hard
to change, but which is clearly in contrast with the overall satisfaction expressed
.2
by workers in the sector.
New Technologies
Facing challenges with Innovation
Logistics is witnessing a period of profound change. Among others, the most relevant
factors that are driving the transformation of the logistics sector are the deployment
of new technologies and the development of eCommerce.
The recent growth of online sales affects almost every country in the world and has
allowed the logistics industry to branch out and diversify its operations. Among the other
main effects of growth in the eCommerce cluster, it is worth pointing out the increased
importance of Logistics and the profound changes in distribution channels and processes.
The eCommerce cluster has become particularly strong during the pandemic. When
governments enforced lockdowns, a vast portion of the global population started
shopping online for all their consumer needs. This has led Logistics companies to adapt to
increasing delivery pressures and to keep up with customer expectations.
Between 2019 and 2020, the value of global eCommerce sales grew by 26.7% to 4.2
trillion U.S. dollars. This trend kept rising in 2021 when the global market for online
sales reached almost 5 trillion U.S. dollars. Among the countries analysed, Italy grew
the most in eCommerce sales between 2019 and 2021 (88.6%), followed by Brazil
(65.5%), Germany (61.3%), Poland (39.8%), UK (32,3%), and China (24,6%).
Source
eCommerce retail sales worldwide (billion US dollars)
Statista from
eMarketer
4,938
4,248
2,982
3,351
+2,556
2,382 billion
US dollars
17 18 19 20 21
20 20 20 20 20
14 Chapter 2
Source
Country comparisons: eCommerce Sales growth
2019 to 2021
Statista
retail sales (billion US dollars)
102.4 127.5
+61,3%
71.78 79.05
65.3
DE
+32,3%
125.4 129.1 134.2
UK
1,368
1,260
+24,6%
1,098
1,053
1,015
CHN
17 18 19 20 21
20 20 20 20 20
innovation and reputation 15
The major innovation trends in the logistics sector of processes and overall performance.
are directly linked to the main challenges that
companies are facing in the current scenario. Finally, innovation trends are impacting the role
First of all, there is a growing interest in of certain categories of operators. To provide
technological solutions that enable greater supply an example, traditional freight forwarders need
chain visibility and more accurate predictions. to update their business model to maintain their
current market position.
Secondly, eCommerce development has brought
renewed attention to automation, with new The drive towards innovation, automation,
technologies that allow automated systems and digitalization in the logistics sector is often
to incorporate a necessary degree of flexibility. supported by significant state incentives. A clear
In addition, data aggregator companies are demonstration that institutions also recognise the
gaining relevance, since data represent strategic role of this industry in overall economic
a fundamental resource for improving the quality development.
leaders
OP
“China is investing heavily in warehouse “Italian companies have
automation. The presence of a large number recently sped up on
of technology providers and the need to innovation investment – sp
manage big freight volumes – with which eak up
also as a result of Industry
automated systems fit well – enhanced this 4.0 incentives – and are
trend” bridging the gap with
northern European and
Anglo-Saxon countries”
“In recent years, Poland has succeeded
in effectively using EU economic incentives
to invest in innovation, particularly in “In Germany, public
solutions to reduce the impact on climate incentives for innovation
of logistics activities” have been significant.
Moreover, the German
market has great confidence
“The ability of companies to invest is more in digital solutions”
related to the product they manage than
to the industry or country in which they
operate. When a company manages high “Automation and
added-value products it will have higher digitalization are the main
margins and greater product knowledge, innovation trends that can
therefore be more inclined to invest be seen in the logistics sector
in innovation” today”
16 Chapter 2
.1 Public Image
A false belief debunked by workers’ satisfaction
.2
Despite widespread acknowledgment of Logistics’ central role in improving both the
economy and society, the industry is still tied to a traditional public image that no longer
reflects reality. Logistics is still perceived as a physically demanding sector, where manual
or unskilled labour prevails.
This general belief that any work in Logistics is tiring and physically strenuous is difficult
to debunk and makes the industry unappealing to a large share of the population. According
to the survey, only 26% of respondents identify Logistics among the best sectors to work in,
slightly above traditional blue-collar sectors such as manufacturing and construction.
Education 32%
Manufacturing 23%
Construction 20%
Source
Country comparisons: people who would like very much
CLO-INTWIG,
International to work in Logistics
Survey
Source
Country comparisons: position occupied by Logistics
CLO-INTWIG,
International among best sectors to work in
Survey
The analysis by country shows that 95% of workers Logistics workers in Italy (87%), Germany, and the
in China and 94% in Brazil and Poland are very UK (77%).
satisfied with employment in Logistics, followed by
Source
Country comparisons: employee satisfaction within the logistics industry
CLO-INTWIG,
International
Survey Total other workers
CHN BR PL IT DE UK AVERAGE
.1
Labour market
.2
Group “The sector shows a growing employment dynamic,
Gi
which is renewing from a technological point of view and
.3 changing in terms of the quality of work. In addition, the
current technological transformation is opening interesting
sp professional opportunities, requiring skills and roles that
eaks u
p
.5
Labour shortage is one of the main challenges that Logistics is facing. To respond to this .1
emergency, companies use benefit programs and economic incentives to attract skilled
and unskilled workers. An approach that increases the overall appreciation for the
sector by its current workers. In addition to this, the logistics industry is starting to fill
.2
the gender gap, by increasing women’s participation at managerial levels.
Labour Shortage .3
More workers for greater growth
.4
.5
.6
.7
Undoubtedly one of today’s major concerns that Logistics companies are facing
worldwide is labour shortage, both in transport and warehouse sectors.
The shortage of workers is a global phenomenon with different causes. Among these,
the false belief that Logistics jobs are strenuous, plays an important role.
A perception that does not take into account the fact that companies are increasingly
equipping themselves with cutting-edge technologies to improve operational efficiency
and create safer working conditions.
The data clearly show the scale of this phenomenon. In general, considering the European
regions with the greatest shortage, it appears that the United Kingdom lacks 180,000
Logistics operators, Germany and Poland lack 170,000 and 160,000 workers respectively.
20 Chapter 3
Source
Country comparisons: Logistics operators shortage
Contract Logistics
Observatory in Europe (thousand people)
“Gino Marchet”
Germany 170
Poland 160
France 120
Spain 65
Italy 60
Source
CLO on Instawork 75% of warehouse operators in developed economies are having trouble
attracting employees, causing them to operate below capacity.
leaders
OP “Driver shortage issues are due “Driver shortage for
to the sum of several factors. international transport is
For example, in Germany the main problem – this kind
sp
eak up and Italy, the elimination of transport requires extensive
of mandatory military service driver flexibility. The issue
has caused a reduction of truck is more manageable at
driving licenses, affecting national transport level”
the number of potential truck
drivers today”
Labour market 21
Qualified Personnel .1
The most sought after qualified profiles among Logistics companies include customer .4
care, data analysts, logistics engineers and cyber security experts, but also people
with great knowledge of new technologies, like automation technology experts.
.5
.6
.7
AI Specialist +93%
The growing interest shown by Logistics companies in IT and Data experts is having
an impact on the general attractiveness of these professional areas. When asked to point
out the best department to work in, 16% of workers employed in Logistics choose IT and
Data Management.
Goods transport
Warehouse administration
Warehouse
Customer Service
Customs
General Services
Marketing
Asset Management
Sales
Shopping
Legal
leaders
OP “Cyber security experts are “The significance of employees
becoming increasingly critical specialised in customer care
for Logistics companies” and customer engagement
sp
eak up is rising steadily”
Incentive Programs .1
The choice of the most appropriate levers to use is highly dependent on the target .3
and varies according to the activity, the age and gender of the workers considered.
It is particularly evident, for instance, that among young workers there is a high demand
for a good work-life balance. Another factor that impacts on the policies implemented
to hire and retain workers is the type of company and, in particular, its level
of internationalisation. .4
Finally, many companies recognise the importance of improving the working
environment and fostering cooperation with universities to improve brand visibility
and promote their industry.
.5
leaders
OP
“Today, there is high demand “A certain degree of employee .6
for a good work-life balance. turnover can be beneficial for
sp Smart and remote working companies in terms of renewal.
eak up
are requested especially by However, in some countries,
young people. However, we the turnover level is too high: .7
often need physically present it is necessary to enhance
employees” worker loyalty.”
The increase in costs resulting from higher salaries can nevertheless be a problem
.3 for companies. For this reason, achieving the right balance between maximizing
attractiveness and minimizing costs is among the top priorities for Logistics companies.
To achieve this goal, companies operating in countries where the tax burden on salaries is
particularly high, prefer to adopt more generous benefit policies.
.4 The benefit policies most commonly implemented by companies are:
Economic benefit policies (e.g., stock options);
Corporate welfare programs (e.g., health insurance);
Worker well-being targeted policies (e.g., free psychologist, discounts on products, etc.);
.5 International exchange programs, implemented especially by multinational
companies.
.6
Source
Country comparisons: average wage per job position
CLO-INTWIG,
Salary guide
Warehouse Operator Logistics Planner Supply Chain
(median) (median) Director (median)
.7
DE 33,387.00 € 47,979.00 € 106,517.00 €
UK 31,147.00 € 41,780.00 € 105,913.00 €
IT 23,683.00 € 29,221.00 € 104,602.00 €
PL 11,279.00 € 17,85200 € 39,094.00 €
CHN 9,074.00 € 25,760.00 € 123,420.00 €
BR 7,891.00 € 15,961.00 € 58,140.00 €
The survey shows that on average, about half of all Logistics workers have access
to company parking, free water and coffee (or other food and drink), corporate health
insurance, a company computer, and canteen facilities. Less common benefits include
performance bonuses, training activities, and flexible hours. And, the least common
benefits, we find accommodation, offered to 22% of workers in the logistics sector,
scholarships (19%) and company day-care centres (18%).
49%
47% 46%
44%
42% 42%
38% 38% 37%
36%
31%
28%
22%
19% 18%
Company parking
Company computer
Canteen facilities
Performance bonuses
Flexible hours
Lunch vouchers
Business mobile
Remote working
Company shuttle
Company car
Accommodation
Scholarships
leaders
OP
“Tax burden on salaries is high “To hire new workers, it is
in Italy. Therefore, companies sometimes necessary to pay
are encouraged to implement them more than workers that sp
eak up
substantial corporate welfare have been in the company for
programs, as their tax impact a long time. It is a problem
is zero” that must be managed”
26 Chapter 3
.1 Working Conditions
Quality of life at work
.2
The attention that companies operating in Logistics pay to their employees results in
the overall satisfaction of workers. The survey shows that, when asked to evaluate the
quality of their life at work, people employed in Logistics assign a score of 7.5 out of 10.
.3 As for individual countries, it appears that, with a score of 8.5, Chinese workers express
the greatest degree of satisfaction, followed by people employed in Brazil (7.7), Italy
(7.4), Poland (7.4), and Germany (7.1). A slightly lower degree of satisfaction is reported
in the United Kingdom (6.9).
.4 Source
Country comparisons: quality of life at work according
CLO-INTWIG,
International to Logistics employees (scale 1 to 10)
Survey
.5 CHN 8.5
BR 7.7
.6 IT 7.4
7.5
PL 7.4 Average
.7 DE 7.1
UK 6.9
Labour market 27
When asked about the specific aspects that they in the industry (7.5) are also appreciated.
value the most, respondents say they are particularly It is worth noticing that the prestige of working
satisfied with their relationships with colleagues in the sector is the least chosen aspect, a clear
(8.0) and the degree of safety in the workplace (7.8). sign that workers are aware of – and perhaps
Relationships with superiors (7.7), quality of the influenced by – the public image of Logistics as
work place (7.6), and ease of finding employment an unappealing industry.
.1 Training
A successful policy to improve skills and abilities
.2
In Logistics, training is important both to improve the skills of employees and to attract
new workers. For this reason, companies are implementing different training policies,
internally or in collaboration with other private or public bodies, like universities and
technical schools.
.3
Implementing in-house training is generally easier for big companies, which usually
devote specific resources to this kind of activity. Among the factors that affect
companies’ training policies, there are also cultural differences. For instance, Germany
stands out for the great number of training initiatives implemented, motivated by
.4 a high degree of social recognition for the sector and the cooperation between schools
and companies.
leaders
OP
.5 “In Germany, Logistics is recognised high social value.
There are several upper high school courses dedicated
to the logistics sector “ sp
eak up
.6
From the workers’ point of view, the survey reveals that 69% of those employed in the
logistics sector consider training and continuous learning very important in order to
stay up-to-date, while only 2% consider it irrelevant. Finally, it is worth pointing out
that workers also deem training and learning to be fundamental for keeping their job
.7 and finding new ones.
69% 24% 5% 2%
very important quite important not very important not at all important
Source
Country comparisons: training is considered very important
CLO-INTWIG,
International
Survey
CHN BR UK DE PL IT
The analysis of the answers provided per country shows that training is considered
very important in China, where 88% of participants responded positively, and in Brazil
(79%). On the other hand, workers residing in Poland and Italy pay less attention to it.
Source Are your skills in line/up-to-date with the Logistics market demands?
CLO-INTWIG,
International
Survey
Average 41 52 6 1
CHN
54 44 2 0
BR
52 47 1 0
UK
45 45 10 0
DE
35 58 7 0
PL
35 57 8 0
IT
27 63 9 1
As for the most requested soft skills in Logistics, workers state that in order to find
employment in this sector it is first and foremost necessary to have team working abilities,
but also planning and organisational skills, as well as problem-solving and speed of execution.
30 Chapter 3
Problem Solving
Speed of execution
Communication
Flexibility
Decision-making
Leadership/Guidance
A scrupulous attitude
A result-oriented approach
Digital mindset
Openness to change
Emotional stability
Conflict management
On the other hand, the most requested technical territorial level. To provide an example, China and
skills (hard skills) are knowledge of operational Germany include the knowledge of environmental
flows and processes, knowledge of warehouse regulations and environmental sustainability among
management systems, regulatory knowledge and the main hard skills, while in Poland the knowledge
planning, and scheduling techniques. of foreign languages is particularly significant.
It is interesting to note some differences at the
Gender Gap .1
Looking at salaries, a gender pay gap does not emerge at the blue-collar level, since .4
salaries are generally defined by collective labour agreements. On the contrary,
a gender pay gap exists at managerial level, due to the higher percentage of male
managers in top-level positions.
OP
leaders .5
“Blue collar warehouse workers and drivers are still predominantly male.
sp Female presence is higher at white-collar and management level”
eak up
.6
Source Country comparisons: percentage of female workers
International
Labour
.7
Organization
DE PL IT UK BR CHN
.1
Responsibility
and sustainability
.2
.3
Group “The sector shows a tendency to seek sustainable
Gi
solutions, not only from an economic point of view but
also from an environmental and social point of view. Many
companies, especially those addressing a B2C target, pay
sp particular attention to sustainability because of its impact
eaks u
p
The key role Logistics plays in economies and societies calls for great responsibility. .1
In order to be sustainable, Logistics has to implement practices aimed at improving
the sustainability of the supply-chain, ranging from the supply of raw materials to
processing, storage, packaging, and distribution. Yet, the concept of “Sustainable
.2
Logistics” is not limited to the environmental footprint but also involves the economic
and social sustainability of its activities.
Environment .3
Logistics companies are working on several «Green Logistics» solutions. These solutions
are related to warehouse and transport activities, logistics network design and
innovative packaging solutions.
With regards to short-haul transport, electric trucks are often considered as the best
option, but the high initial investment and issues related to charging times hold companies
back, both in the purchase and usage of electric vehicles. When it comes to long-haul
transport, LNG and hydrogen-powered trucks are the most viable solutions. However,
the recent gas price surge has hindered companies’ investments in LNG trucks, and
hydrogen power for transport requires a few more years to be considered a mature
solution.
Last but not least, it is worth noticing that a trade-off between environmental and
economic sustainability exists. The solutions that might be pursued to positively combine
these two aspects are related to process optimisation (e.g. increasing truck saturation)
and customer-company cooperation (e.g. encouraging customers to select specific
delivery time slots to implement transport optimisation strategies). In addition, Logistics
managers should cooperate with other business departments (e.g., marketing managers
for innovations in sustainable packaging) to implement environmentally sustainable
solutions.
Source
Ocse; CNT
Country comparisons: freight transport – modal split
PL
83% 12% 5%
IT
82% 13% 5%
UK
79% 12% 9%
DE
61% 25% 10% 4%
BR
61% 21% 14% 4%
CHN
41% 21% 34% 4%
Source
Contract Logistics
Green Logistics solutions
Observatory
“Gino Marchet”
LOGISTICS PROCESS
1 2
3 4
Warehouse Packaging
Green building Pallettization optimisation
and yard management Replacing plastic with cardboard
Electric plants (HVAC) Primary packaging review
Lighting systems Secondary packaging review
Handling systems Inventory updating
Certificates Testing of alternative materials
Process review Circular economy projects
Measurement systems Reverse Logistics
36 Chapter 4
leaders
“Small transport companies “To implement sustainable OP
don’t have visibility and solutions, logistics managers
clarity on which solutions need to work with other sp
could reduce environmental business departments. eak up
impact. Even a small transport For example, the cooperation
company knows that diesel- with marketing managers
fueled transport will not last is necessary to introduce
forever, but it doesn’t know innovative environmentally
in which direction to invest” friendly packaging solutions”
Society .1
The logistics sector has been often criticized for social sustainability issues and it is not
infrequent to read news about poor working conditions in this sector. The most relevant
social sustainability issues relate to low salaries, the physical effort required from .3
operational workers in the sector (e.g. truck drivers, warehouse operators) and the stress
associated with shift work.
These issues are highly dependent on country specific labour legislation, the rules
governing negotiations between companies and trade unions, and the employment
contracts of operational workers. In addition, these issues can be exacerbated when
the approach of the client company is too price-oriented.
However, awareness of the social sustainability issues affecting the logistics sector
is spreading, leading to the implementation of several initiatives meant to improve
workers’ well-being.
Moreover, new technological solutions, the increased value of logistics services, and
other organisational innovations are transforming the work activities in the logistics
sector. Truck driver jobs increasingly entail performing problem-solving activities
and warehouse operational workers can be relieved of the heavier tasks through the
introduction of new technological solutions such as goods-to-person picking systems
and, in the future, exoskeletons.
leaders
“Digitalization has enabled “The introduction of automatic OP
improvements of the transport conveyors, advanced forklifts
sector’s social sustainability. and – potentially, in the long sp
An example is the introduction run – exoskeletons can improve eak up
of the digital tachograph” warehouse ergonomics”
38 Chapter 4
.1 Economics
The trade-off between cost
.2 and environmental performance
When dealing with the implementation of solutions that could reduce environmental
impact, Logistics companies often face difficult choices. Among the factors that need
.3 to be taken into consideration, economic issues play a crucial role. Achieving
environmental sustainability without compromising economic performance becomes
a priority for companies operating in the logistics sector.
Today, increasing costs can harm companies’ potential to invest in digital and green
solutions. Rising raw materials costs – and the related increase in fuel prices – can
harm companies’ profit margins, generating many concerns among operators in
the logistics sector.
The input factor where the cost increase shows the highest growth trend, causing
many concerns among Logistics companies, is electricity – prices have experienced
a sharp rise since the second half of 2021 in all European countries.
500.00
400.00
300.00
200.00
100.00
euros per
megawatt
-hour 0.00
.1
Gi Group
Holding’s
.2
conclusions
Gi Group Holding’s conclusions 41
Gi Group Holding draws a brief concluding note showing its point of view on the future of .1
Logistics. In the past years, the sector has been able to face great changes with resilience
and flexibility. The innovations and new technologies that are emerging will give a further
boost to an industry destined to play a key role in society and global economies.
.2
Over the next few years, we will observe further transformations accelerated by the
digitalization process in Logistics. A process that has proved crucial during the pandemic,
in order to respond to the stress of global supply chains and to ensure greater operational
efficiency and flexibility.
We will soon discover how innovations such as Big Data Analytics, Blockchain, IoT, 5G,
Artificial Intelligence, and Additive Manufacturing will change the supply chain and
influence the balance of power among the market players, reshaping the current business
models.
The logistics sector is ready to make the most of these innovation and changes, proving
once again its ability to play a fundamental and essential role in the improvement
of economic systems and in the functioning of any other production activity.
42 Chapter 5
Michele Savani
Division Manager Logistics Gi Group Italy
“ The phenomenon of the Great Resignation that started in 2021 highlights that
workers have more opportunities to choose where to work, and are more open to
resign for economic and personal reasons. Secondly, the Great Resignation shows
that the market is liquid not only because of labour shortage, but also because the
set of transversal skills required is largely overlapping between different companies
and perhaps even between different sectors. In this context, considering the results
of this study, we can say that there are many characteristics that can make Logistics
companies attractive to the most demanding candidates: quality jobs, salaries in line
with - if not higher than - the rest of the market, benefits above the average of other
sectors, training opportunities, and working conditions perceived as satisfactory.”
“ During COVID-19 the key role of Logistics became clear to everyone, highlighting
a fundamental point of the sector: it is continuously changing.
Logistics is renewing itself both regarding the technological solutions and the quality
of the work, opening new professional opportunities that are not traditional for this
industry. Now a days new professional figures, such as software developers, maintainers
of highly automated systems, data analysts and artificial intelligence experts are more
and more required by logistics companies. The analysis highlights the capability
of the sector to sustain this process and to attract new resources. The high level
of satisfaction of actual Logistics workers and programs to improve new skills
and abilities are the main drivers to continue the transformation of this sector.”
Barbara Bruno
Global Head of Gi Group Staffing
“ We are aware of the misperception associated with the Logistics sector. We need
to ask ourselves: how can we change this perception? How can we transfer an unbiased
image to candidates, making them aware of all the opportunities that this industry
can offer? The point is that the world of Logistics is definitely changing, not only
the industry itself but also the way of working in it. Companies should improve their
reputation, taking into consideration the target audience of workers to which they
are communicating. There is great growth potential for young people, and digital
innovations are being rapidly implemented: these could be two big pull factors for
employers in the industry, and we can help them to reinforce the way their value
proposition is communicated to candidates.”
44 Chapter 5
.1 Who we are
.2 Founded in 1998 in Milan, Italy, Gi Group Holding is one of the world’s leading
providers of services for the evolution of the labour market. Through a global staffing
and recruitment business ecosystem formed by six individual, yet complementary brands
(Gi Group, Gi BPO, INTOO, Wyser, Grafton, Tack/TMI), the group offers a 360° suite
of offerings that generate relevant, impactful solutions. Gi Group Holding works
to promote a sustainable, streamlined and enjoyable global market for candidates
and companies, reflecting the ever-changing labour market needs.
The company employees over 6,700 staff and is active in 29 countries across Europe,
APAC, the Americas. Providing services to more than 20,000 client companies and with
revenues of €3.2 billion (2021), Gi Group Holding is the 5th largest European staffing
firm, and 16th in the world (according to Staffing Industry Analysts).
Our We firmly believe that people must be supported so that they remain employed for the
majority of their working life. Work must be transformed to eliminate any factors that
Vision
discourage or hinder workers from staying in, or entering the workforce.
Our Through our services, we contribute, as a key player and on a global level, to the
evolution of the labour market, emphasising the personal and social value of work.
Mission
+650
branches and offices
+6,700
employees
Gi Group Holding’s conclusions 45
Our Brands
29 Argentina
Brazil
Hong Kong
Hungary
Serbia
Slovakia
countries Bulgaria India Spain
with direct China Ireland Switzerland
presence Colombia Italy The Netherlands
Croatia Lithuania Turkey
Czech Republic Montenegro Ukraine
Denmark Poland United Kingdom
France Portugal USA
Germany Romania
46 Infographics
Logistics...
at a glance
...is a sector of huge economic importance, worth
...experiencing continued
growth 9.9
trillion
US dollars
8.6 9
9,4
8,6
8 8,2
CHN
BR 10,8%
13.7% 17.8
PL 9,3% million
IT 7,7% employed
UK 7,7% people
DE 7,3%
leaders
OP “Recent events, from the “It is necessary to strengthen supply
pandemic to the blocking chain resilience, increase the ability
sp of container ships, made to predict complex event
eak up clear how key the role developments, and maintain a level
of Logistics is” of flexibility enabling to respond to
rapid scenario changes”
26%
9th
of respondents
are keen to work
Logistics is in ninth place among the sectors in Logistics
in which people would like to work
Logistics... at a glance 47
87%
employee satisfaction
in the logistics sector
Needs emerged
75%
operators UK 180
shortage
DE 170
(thousand
PL 160
people)
FR 120 of warehouse operators in
ES 65 developed economies are having
IT 60 trouble attracting employees
Solutions
JOB 1 QUARTILE
st
MEDIAN 3 QUARTILE
rd
MEDIAN
JOB 1 QUARTILE
st
MEDIAN 3 QUARTILE
rd
MEDIAN
Methodology
This report is the result of research conducted by the Contract Logistics “Gino
Marchet” Observatory (CLO) – of the Politecnico di Milano and the Data Intelligence
company INTWIG.
The study was conducted in 6 countries (Brazil, China, Germany, Italy, Poland, and the
United Kingdom) and was structured following a rigorous methodology developed in 4
phases:
Desk Analysis: collection and matching of public data in order to provide
a complete overview of the logistics sector;
Opinion leader interviews: 7-8 interviews with opinion leaders in the logistics sector,
conducted in each of the 6 countries surveyed;
International Survey: a CAWI survey conducted on a sample of 850 citizens aged 18
to 65 (including at least 85 workers in the logistics sector), in the
6 countries surveyed.
Salary guide: in the 6 countries surveyed, market pay (base salary + variable pay)
benchmark focused on 12 job positions, with following structure:
- first quartile: splits off the lowest 25% of data from the highest 75%
- median: cuts data set in half – 50% of the data set is higher than median, the other
50% is lower
- third quartile: splits off the highest 25% of data from the lowest 75%
52
Notes
Notes
54
Data
Research
and
Analysis The Digital Innovation Observatories of the School of
Management of the Politecnico di Milano were born in 1999 with
the aim of creating culture in all the main areas of Digital Innovation.
Nowadays, Observatories are a qualified reference point on Digital
Innovation that integrates Research, Communication, Continuous
Updating and Networking activities
Data
Research
and
INTWIG is a Data Intelligence company that has been
Analysis
developing data management strategies since 2016. It offers
+ Graphic support to companies to understand the context they move
Design into, anticipate trends, optimise processes and make decisions
quickly. INTWIG’s method is customised, rigorous and covers
the entire Data Lifecycle: collection, analysis, interpretation
and visualization. Customised tools and solutions are developed
by a team of researchers, analysts, data managers and
communication experts with technical and cross-functional skills.
55
More than
Work