new competencies and
innovations in logistics

Statistical data collection and classification is given high priority in the UK. The Office for National Statistics (ONS) currently manages this activity (http://www.statistics.gov.uk/). This is the government department that provides statistical and registration services.

As a consequence the UK has a well-structured system of occupational and industrial data classification. Despite their individual nature the SIC (Standard Industrial Classification) and the SOC (Standard Occupational Classification) system are compatible with Eurostat systems enabling effective comparisons of national data with international data.

ONS is responsible for producing a wide range of economic and social statistics. It also registers life events and organises the decennial census of the population.

2.1 The UK Occupational Classification System - SOC
In 1990 the Central Statistics Office in the UK produced a classification for occupations called the Standard of Occupation Classification (SOC90). This system has subsequently been adopted by England, Scotland, Wales and Northern Ireland to classify and process occupational data. It is used by employment agencies for job matching, offers job definitions and classifications for the careers advisory sectors and, through the statistical analysis of trends, provides guidance for development of labour market policies, particularly in the domain of work-based training.

The SOC has quickly become a vital tool for many official bodies. The classification is regularly updated to reflect the changes in industry and education. Towards the end of the 1990s the SOC was beginning to appear outdated and as a consequence has been revised to meet the demands of the 2001 census. Although the SOC90 was considered to be inadequate in terms of reflecting recent changes, SOC2000 retains the same major group structure for the sake of continuity and due to pressure from users. The classification system is henceforth called the SOC2000. Responsibility for occupational classification has now been transferred to the Occupational Information Unit of the Office for National Statistics (ONS).

The updating of the SOC has not only taken into account changes in the labour force but also offered a higher degree of detail. The SOC90 classifies occupations at a 3-digit level and the SOC2000 at a 4-digit level. The SOC2000 is based on a similar system as the ISCO88 classification and ONS has now made a clear mapping between the two systems.

2.2 Logistics and transport jobs in SOC90 and SOC2000
The use of SOC 2000 makes it possible to directly compare occupation statistics in UK with other countries, but some of the categories included in SOC90 were not included in SOC 2000. We have identified 17 categories of logistics and transport jobs for the period prior to 2000 inclusive, whereas the figures for 2001 based on the SOC2000 only include 13 categories. This change has reduced the level of detail. Of course a high number of categories makes it possible to have a detailed analysis of the occupation. In some countries, using ISCO based statistics, each of the categories have up to 10 sub-categories. Therefore it is possible to add a number of sub categories to the ISCO, but this has not been done in the United Kingdom.

2.3 Statistics regarding logistics and transport jobs in the SOC
For the purpose of the Novalog study, labour market statistics have been produced using both the international ISCO classification and the SOC 90/SOC2000.

The following statistics have been obtained from the Office for National Statistics to cover the period 1995-2001. Due to the changes in the SOC classification system, some statistics for 2001 are shown separately, since the classification codes do not always match.

The largest employment categories within transport are drivers of road goods vehicles, whilst the largest category for logistics workers are that of store keepers and warehouse staff. Most occupations show a steady growth in employment rates.

Employment within logistics and transport occupations shows a steady growth over the period 1995 to 2000. Initially, it would appear that there has been a decline in employment within logistics for the year 2001. This is partly due to the changes in the classification systems. This theory is confirmed by unemployment figures for the period, which show that there is no increase in unemployment within this sector.

2.4 Occupation based on ISCO-88 classification
The National Statistics Office uses an internal guide to transfer SOC90 to ISCO-88, which makes it possible to describe occupations by ISCO-88 classification. The change from the SOC90 3 digit system to the 4 digit SOC2000 allows a more satisfactory mapping of the UK statistics for 2001 to ISCO codes.

The main problem in doing this is that the level of detail is reduced, since data are only available at a 3 digits level rather than at the 4 digit standard level.

Using this ISCO focus, the total amount of logistics jobs increases, due to the lower detail level than that obtained by the SOC90. The increasing trend for these selected occupations are the same as identified by the SOC90 statistics. It is not possible to point out one special group that accounts for the increase as it seems equally high in all groups, as can be seen in the graph below:

In 2001, the group 833X "Transport and mobile machine drivers and operatives" would seem to show a disproportionate increase in employment levels, this is due to group classification changes in the SOC 2000.

3.1 The UK Industrial Classification of Economic Activities
Industrial statistical data is classified using the SIC92 (Standard Industrial Classification of Economic Activities). There are similarities between this classification and the NACE classification.

Standard Industrial Classification Codes used in the Production of Employment Statistics (SIC 92)
24 manufacture of chemicals and chemical products
25 manufacture of rubber and plastic products
30 manufacture of office machinery and computers
31 manufacture of electrical machinery and apparatus
34 manufacture of motor vehicles, trailers and semi-trailers
52 retail trade, except of motor vehicles and motorcycles; repair of personal and household goods
60 land transport; transport via pipelines
61 water transport
62 air transport
63 supporting and auxiliary transport activities; activities of travel agencies

It is therefore possible to cross reference employment rates by occupation with a specific sector of employment. The Office for National Statistics supplies the following statistics for the period 1995-2001. We do not have a cross tabulation between SOC2000/90 and NACE. But we have a cross tabulation between ISCO and NACE.

Most logistics jobs are to be found in transport-related sectors. Retail trade is another important sector for logistics jobs. The 2001 figures confirm that the majority (over 86%) of transport and distribution managers are employed in the transport-related sectors. The largest concentration of storage and warehouse managers is to be found in auxiliary transport activities (36.44%) and retail trade (33.44%). The majority of buyers and purchasing officers and stock control jobs are to be found in the retail trade, making it a sector of great interest for the Novalog study.

The comparison of employment rates over the period 1995-2001 is made difficult in the UK due to the fundamental changes made in 2000 to the statistical classification system. Not only do these changes to the classification make the figures generated by the two classfication systems difficult to compare - witness the sometimes significant discrepancies between the figures for 2001 and the trend established between 1995 and 2000 -, the new classification would appear to be less detailed than its predecessor.

In spite of these problems, one can conclude that there has been a general increase in employment for logistics jobs, at least until 2000. The transport and trade sectors are major suppliers of logistics and transport jobs.

The national situation in the United Kingdom is characterised by many different sources of definitions of job titles and functions. The main source is the Standard Occupational Classification 2000 (SOC 2000). Although this classification has a detailed description, there are several other sources and definitions in common use.

It is possible to find these definitions and sources used by placement services, logistics institutes and organisations and within companies.

There is no requirement that UK employees should have a contract of employment governed by English or Scottish law. However, under section 1 of the Employment Rights Act 1996, employers are required to give a written statement of terms and conditions of employment. This statement should be given to an employee within two months of the start of his employment. This statement includes details relating to the conditions and place of work and also includes a job title or brief job description.

Collective agreements negotiated by the social partners are in place in the UK, however they do not normally include specific job descriptions. The Railways Transportation and Maritime Workers Union (RMT) (www.rmt.org.uk) has been contacted and they confirmed that collective agreements were in place with a number of national and local logistics operators. However, they also confirmed that these collective agreements do not include job descriptions.

The TGWU - Transport and General Workers Union (http://www.tgwu.org.uk/) confirmed that collective agreements are in place for logistics/transport operators and that local level collective agreements are the most likely source of information relating to job descriptions.

3.1 Job descriptions from official employment agencies
Job Centre Plus, part of the Government Department for Work and Pensions, is responsible for assisting the public in finding employment. As in many countries, Job Centre Plus provides the public with details of employment vacancies. This information can be consulted either in the Job Centre Plus agencies or on the internet at www.jobcentreplus.gov.uk.

Job Centre Plus classifies employment vacancies using the Standard Occupational Classification (SOC) used for statistical purposes. Within the SOC, there is a brief definition attached to each classification code.

The job descriptions identified are as follows: (see Annex 1)

• Production, Works and Maintenance Managers
• Purchasing Managers
• Storage and Warehouse Managers
• Buyers and Purchasing Officers
• Stock Control Clerks
• Fork-lift Truck Drivers
• Packers, Bottlers, Canners, Fillers
• Other goods handling and storage occupations
• Shelf Fillers

Each job description provides a brief definition of the activity, the training requirements, a list of tasks to perform and the other job titles which are used.

Even though the Job Centre Plus uses the SOC 2000 classification within its system, they also use some common titles within their job search database. This is because job advertisements are placed by companies, and therefore do not necessarily use the SOC2000 defined job titles. Examples found are:

• Logistics assistant
• Distribution clerk
• Logistics production planner

The abovementioned jobs can also be classified according to SOC 2000, however the title used is the company title.

3.2 Job descriptions from official vocational/careers guidance
The careers advisory service in the UK is managed by "Connections Direct", who offer careers guidance to teenagers and school leavers. Connexions is a modern public service and young people are actively involved in its design and delivery. The Connections Direct web site (http://www.connexions-direct.com.cfm) is a useful source of general job descriptions and has a number of logistics related job descriptions.

The following job descriptions were identified within the Connexions Direct Athena Database:

• Warehouse Worker
• Warehouse Manager
• Production Planner
• Packaging Operative (Food and Drink Industry)
• Lift Truck Operator
• Buyer
• Distribution Manager
• Packer

These definitions usually give a brief description of the activities and tasks involved, the types of organisations where the position can be found, details of potential career progression and the entry qualifications required.

3.3 Careers advice from other sources
The tradition of trade associations and chartered institutes is very strong in the UK and many logistics related bodies offer careers advice as follows:

3.3.1 - Careers in Logistics
Careers in Logistics (http://www.careersinlogistics.co.uk/index.html) is the first dedicated website in the UK for logistics jobs and careers. Careers in Logistics is organised by three different organisations and was initially funded by the Department for Transport.

"Whilst we provide an established service for employers to advertise jobs and for job seekers to find jobs, we also supply lots of invaluable advice and information about careers, training and funding, as well as the industry itself. We find out more about the wide-range of jobs available in logistics, with profiles of the job, salary expectations and future prospects".

These profiles are classified in two groups:

1. Managerial
   • Contract Manager
     Responsible for Profit and Loss account, driver staff and operational efficiency.
   • Warehouse Manager
     A varied and exciting opportunity with strong development prospects.
   • Operations Manager
     Holds prime responsibility for Logistics operations, spanning staff development, business performance and strategic planning.
   • Logistics Manager
     A challenging role, responsible for the overall management of the supply chain.
   • Inventory Specialist
     Ensuring the right stock is available at the right time is just one daily challenge.
2. Non-Managerial
   • Warehouse Operative/Warehouse Worker
     Working as part of a team and responsible for handling goods from receipt through to dispatch.
   • Fork Lift Truck Operator
     Responsible for the safe transportation of goods around warehouses.
   • Packer
     Responsible for ensuring products are contained within suitable packaging to provide protection during transit.

Each profile provides the following information (see Annex 2):

• Brief definition
• Type of job (Managerial or non-managerial)
• Tasks and activities
• Work conditions
• Entry qualifications required
• Knowledge/Know-how
• Job prospects
• Annual income

For each job profile it is possinble to identify the corresponding training courses, the possible job offers, the companies in the sector.

3.3.2 - The Chartered Institute of Logistics and Transport in the UK
The Institute (http://www.ciltuk.org.uk/) has formed a partnership with Inside Careers to produce a new careers guide intituled "Logistics and Transport Management" (available from www.insidecareers.co.uk). This guide is intended to be a definitive career service for graduates interested in logistics, supply-chain management, transport operations and transport planning. The aim is to increase both the quantity and the quality of entrants into the professions.

The following logistics jobs are included in the guide:

• Supply Chain Consultancy
• Planning Manager
• Physical Logistics Manager

This guide gives very broad definitions of various white collar/management functions as well as:

• Overview of the profession and areas of opportunity
• Current Issues - Topical articles providing information which job seekers may use in interviews
Salaries and Career Paths - Information on salaries and benefits, plus articles giving a broad picture of the different roles in the profession and the various entry routes
• The Insiders (people profiles) - Articles covering a typical day/week in the life of professionals in logistics and transport in a number of sectors, illustrating different levels of experience from trainees, recently qualified workers, through to experienced management
• Education, Training and Development - Entry level educational requirements and routes into the profession; graduate training schemes and placements; professional qualifications; postgraduate degrees and diplomas; Continuing Professional Development (CPD); professional bodies and benefits of membership and approved courses and training providers
• Finding the Right Job - CV preparation; succeeding at interviews; selecting an employer; job market and career prospects; tips from a HR department
• Course Providers - Details of university courses
• Key Recruiters - Employer profiles and adverts

3.3.3 - The Institute of Operations Management
The Institute (http://www.iomnet.org.uk/), the Institute of Logistics and Transport (http://www.ciltuk.org.uk/) and the Chartered Institute of Purchasing and Supply (http://www.cips.org/) have collaborated to produce a guide called "The Supply Chain Challenge".
Through career case studies it covers the following functions:

• Operations Management
• Purchasing
• Materials Handling

For each function, there is a personalised career history, an indication of the type of activities involved, the kind of organisations requiring such a function and details of entry into the profession. There are also abbreviated job advertisements indicating remuneration levels.

3.4 Graduate Careers Advisory Service
Careers advisory services for graduates are well developed, with many universities presenting job definitions and profiles on their web sites. One such Website is www.prospects.ac.uk.

By way of an example, here are the logistics job descriptions for a:

Warehouse manager
Manages the warehouse overseeing the receipt, co-ordination and safety of goods coming through a warehouse.
A warehouse manager also ensures that orders arrive and are dispatched on time to the right destinations and in the right quantities. Whilst some jobs purely involve the management of the warehouse, others can include managing distribution and packaging as well.
Being a warehouse manager involves achieving given objectives through others (i.e. the warehouse operatives) so there's great demand for good people skills in terms of communication, motivation and leadership. It is important for the manager to gain the respect of staff, facilitating good working relations.

Distribution/Logistics Manager
Logistics refers to the integration of all the processes involved in supply-chain management - goods, labour, information, capital and facilities. It is central to the smooth running of any business, and is provided in-house or contracted out to a logistics service provider.
Distribution manager is one role within logistics and can encompass transportation, stock control and warehousing. It involves ensuring structures are in place to monitor the flow of goods and materials. It is a fast changing industry and relies increasingly on information technology. The skills used in this role will be relevant across the whole range of logistics.

The profile of these jobs is defined in terms of:

• Typical work activities
• Work conditions
• Entry requirements
• Training
• Career development
• Typical employers
• Sources of vacancies
• Related occupations

Vocational training in the UK can be divided into two types: NVQs for blue-collar functions and lower level managerial positions and vocational qualifications issued by professional associations and training institutes for higher level managerial positions. Broader based degree qualifications and postgraduate qualifications are also often mentioned as entry requirements for certain management positions.

4.1 National vocational qualifications - NVQs
As the apprenticeship system in the UK became less popular in the 1980s, it was felt that an alternative system should be found to offer training to young adults, many of whom often left school with a minimum amount of formal qualifications. Employers also required a system that would provide a skilled workforce and allow for the "up-skilling" of existing workers.

In 1986, the Government established the National Council for Vocational Qualifications, which is now known as the Qualifications and Curriculum Authority, to set up a comprehensive framework of vocational qualifications. To ensure the success of this process, employers played an important role in creating the National Occupational Standards. The NOS are a central feature of the NVQs system as they are statements of performance standards describing what a competent person in a particular occupation would be expected to do. They include best practice, the ability to adapt to future requirements and the knowledge and understanding required for competent performance.

The system of defining occupational standards and assessing the NVQs is in a period of change, which will lead to updated NVQs in the near future. The Road Haulage and Distribution Training Council (RHDTC) is playing an instrumental role in drafting the new NVQ standards.

NVQs are not academically orientated qualifications, indeed they reflect the skills, knowledge and understanding that an individual should possess in relation to a specific area of work. As they are very clearly competence based, they are closely linked to typical job functions.

The National Occupational Standards do not lead to formal job descriptions, but the NOS clearly identifies many of the criteria included in a typical job profile.

The NVQs are classified into 5 competence levels as follows:

Level 1 - Foundation skills in occupations
Level 2 - Operative or semi-skilled occupations
Level 3 - Technician, craft, skilled and supervisory occupations
Level 4 - Technical and junior management occupations
Level 5 - Chartered, professional and senior management occupations

The following logistics related NVQs were identified at different levels:

• Performing Road Haulage and Distribution Operations (level 3)
• Distribution, Warehousing and storage operations (levels 2 & 3)
• Distributive Operations (level 1)
• Operational Management (level 5)
• Procurement (level 2, 3 & 4)

A range of NVQs have been developed in order to meet the current and future skill demands of the Logistics sector:

The qualification - Distribution, Warehousing and Storage Operations (see Annex 3)
The qualification is available at three levels and is aimed at distribution, warehousing and storage personnel who handle and store goods within a commercial, wholesale or industrial environment. It is a significantly different qualification to the Storage and Warehousing S/NVQ and reflects the demands for a qualification which is appropriate across organisational sectors.
Logistics is an area of management that is rapidly growing in importance: a number of trade associations, federations and institutes offer vocational training strongly linked to logistics employment competencies.

Several training organisations in Transport and Logistics are developing NVQ training programmes, especially for the following jobs:

• Fork-lift truck drivers
• Packer
• Warehouse operative/worker

4.1.1 - BBSI
BBSI (http://www.bbsi.co.uk/) offers training courses accredited by the Chartered Institute of Logistics & Transport, UK (CILT UK), the leading professional association in Britain for managers and academics involved in the fields of transport and distribution. BBSI is an Academic Partner of the Institute and is an Approved Training Centre. This means that it is able to offer training courses which lead to the following qualifications: the CILT UK Level 3 Certificate in Logistics & Transport and also the CILT UK Level 4 Professional Diploma in Logistics & Transport qualifications.
The CILT UK Certificate is designed to provide a sound foundation for a career within the transport and supply-chain field and is a qualification designed to equip potential supervisors and first-line managers with a complete set of management skills.
It is recommended that individuals wishing to undertake the CILT UK Certificate should be involved in the following areas at the workplace:

• The establishment of activity plans to support logistics operations
• Managing & controlling operational logistics, purchasing & supply activities

4.1.2 - The Chartered Institute of Logistics and Transport (CILT)
The Chartered Institute of Logistics and Transport in the UK (http://www.ciltuk.org.uk), provides a comprehensive programme of qualifications to enhance the knowledge, competence and respect of individuals working in logistics and transport. The Institute's progressive range of qualifications offers opportunities to develop and enhance careers in logistics and the Institute's qualifications are linked to relevant National Vocational Qualifications and Scottish Vocational Qualifications. Candidates therefore have the opportunity to gain additional qualifications.

The Institute offers a number of modular qualifications at the following levels (because they are modular, most can be studied as stand alone units):

• Introductory Certificate (level 2) for new employees or students to provide a grounding in concepts and applications
• Higher Certificate (level 3) which provides a foundation for a career within logistics and supply-chain sectors.
• Diploma (level 4) for individuals already working within logistics developing a strategic view of operations
• Advanced Diplomas and MSc Logistics programme offering strategic management qualifications in logistics and transport.
• Supply-Chain Awareness Game (Professional development and training)

4.1.3 - The Institute for Operations Management
The Institute (http://www.iomnet.org.uk/) offers Certificate, Diploma and Advanced Diploma qualifications covering supply chain management, planning and control issues.

These two Institutes have collaborated to produce a guide called "The Supply Chain Challenge". Through career case studies, it covers the following functions:

• Operations Management
• Purchasing
• Materials Handling

For each function, there is a personalised career history, an indication of the type of activities involved, the kind of organisations requiring such a function and details of entry into the profession. There are also abbreviated job advertisements indicating remuneration levels.

It is considered best practice in the UK to issue a job description when recruiting new personnel, but whether this is issued and the nature of the description will vary from company to company.

The UK Chartered Institute of Personnel and Development provides the following guidelines to its members:

"All recruitment episodes should start with a job profile or person specification stating the necessary and desirable criteria for selection. Increasingly, such specifications are based on a set of competencies that have been identified as necessary for the performance of the job. However, in general, specifications should include the following requirements:

• skills, aptitude, knowledge and experience
• qualifications which should be only those necessary to do the job unless candidates are recruited on the basis of future potential, e.g. graduates
• personal qualities relevant to the job, such as ability to work as part of a team.

Competency frameworks may be substituted for job or person specifications but should include an indicator of roles and responsibilities."

Further information relating to best personnel practices can be obtained from the following web site: www.cipd.co.uk.

Job descriptions are available from a wide range of organisations. Government bodies have clearly put a great deal of effort into drawing up definitions for the SOC classification and the Athena Careers Advisory database. The NVQ scheme offers a loose form of job descriptions through its occupational standards linked closely to professional competencies. When providing advice and guidance, the professional associations and training institutes tend to favour personalised career histories, rather than job descriptions. This is an indication of a more informal approach to employment in the United Kingdom.

Whilst there are many structures in place that provide training and careers advice and guidance which, in turn, leads to the definition of functions and job descriptions, there is an underlying environment of change. Indeed, much has changed in recent years with regard to the management of career advisory roles and the setting of educational and occupational standards.