SA Supply Chain Industry at Risk Without Urgent Youth Development Initiatives

Around the globe, diverse age groups bring a wealth of experience and skills to the workforce, creating a dynamic blend of traditional knowledge and fresh perspectives. This diversity is particularly vital in key sectors like supply chain, where the collective wisdom of seasoned professionals and the adaptive skills of the younger generation merge to drive innovation and growth.

However, labour shortages are also intensifying due to a combination of factors, including a large part of the workforce approaching retirement age, insufficient skills transfer, and increasing emigration. These challenges are exacerbated as the industry's demands expand much faster than the development of its workforce, creating a critical gap that threatens the sector's sustainability.

Africa boasts the youngest population worldwide, with 70% of its Sub-Saharan inhabitants under the age 30. This youthful demographic represents a significant opportunity for the continent's growing supply chain sector, provided there are targeted initiatives to equip this potential workforce with the necessary skills to meet the industry's evolving demands.

Such initiatives could significantly mitigate youth unemployment across the continent, particularly in countries like South Africa, where the unemployment rate among young people (aged 15-34 years) alarmingly reached 45.5% this year. Local statistics also show that experienced youth are four times as likely to secure employment compared to their inexperienced peers, highlighting the critical impact of workplace exposure through experiential learning programmes or apprenticeships.

This year’s commemoration of Youth Day, held under the theme “Actively advancing socioeconomic gains of our democracy”, is a reminder that the empowerment of young people is central to strengthening the fabric of our society. In the context of the supply chain sector, this means not only equipping youth with the necessary skills but also creating opportunities that allow them to drive and sustain the critical infrastructure needed for economic growth and development.

The youth imperative in the SA’s supply chain

The supply chain and logistics sectors are often relegated to the edge of career aspirations, mistakenly perceived as a dead-end field dominated by low-wage jobs. According to a recent PwC survey of millennials entering the workforce, they believe transportation and logistics companies fall short in offering career advancement opportunities compared to the broader industry spectrum.

This misperception starkly contrasts with the evolving reality of the industry, which increasingly offers roles that demand high skills, pay well, and provide substantial opportunities for career advancement. Moreover, as technology continues to reshape every aspect of the supply chain, the demand for advanced technical skills is surging.

Clearly, the sector needs to undergo significant rebranding.

It’s not just about altering perceptions; it's about fundamentally reshaping the industry to align with the values and expectations of Gen Zs and millennials, who are next to enter the workforce. These younger generations seek more than just a salary; they prioritise meaningful work, sustainability, skills development, and flexibility – qualities that must be embedded in the ethos of modern supply chain roles.

Of these qualities, enhancing skills development opportunities is most important. A recent Amazon study revealed that nearly three-quarters of Millennial and Gen Z workers intended to leave their jobs in 2023, citing a deficiency in skills development and career mobility opportunities as their primary reasons for planning to resign.

The role of the private sector

For the private sector, the stakes could not be higher, and the call to action could not be clearer. South African supply chain companies must become proactive educators as well as employers. By launching comprehensive training programmes and partnerships with educational institutions, they can cultivate a workforce ready to meet the challenges of tomorrow.

First, companies should establish apprenticeship programmes that offer real-world experience alongside classroom learning. This dual approach ensures that theoretical knowledge is seamlessly integrated with practical application, preparing young workers for the complexities of supply chain operations. Such programmes also allow companies to tailor the skills of potential employees to fit emerging industry needs, from digital literacy to green supply chain practices. Furthermore, the private sector must foster a culture of continuous learning and innovation. This can be achieved by instituting formalised internal coaching and mentoring programmes, shadowing opportunities, and mechanisms for skills and knowledge transfer. These initiatives facilitate rapid growth and development, aid in succession planning, and primarily cost the business nothing more than time.

By providing ongoing professional development opportunities, companies can keep their workforces agile and responsive to new technologies and market shifts. This not only aids in employee retention but also boosts overall productivity and industry advancement.

For example, CHEP, which deals in pallet and container pooling services, launched a pioneering learnership programme specifically designed to equip young South Africans with the critical skills and practical experience required in the supply chain and business management sectors.

Structured over a 12-month period, the programme combines theoretical education with hands-on training in real-world settings. This work-based learning pathway leads to a recognised qualification on the National Qualifications Framework (NQF), overseen by the Sector Education and Training Authorities (SETAs). To date, over 400 participants have completed the programme, with some of them securing permanent employment across various disciplines within CHEP’s nationwide operations.

Futureproofing the supply chain

South Africa must invest in its young people. The alternative is a supply chain sector – and an economy – that could falter under the weight of its unmet potential.

Now is the time to champion policies and initiatives that integrate more young people across the supply chain, ensuring they are not only employed but empowered with the skills necessary for tomorrow.

As we foster a workforce that is both skilled and diverse, we fortify our national infrastructure against the challenges of the future and ensure that South Africa remains a competitive player on the international stage.