Logistics Sector Commentary

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Market changes

A well-structured supply chain has proven to be a strong and valuable tool in helping a business weather the current global financial storm. With transport costs often higher than the actual product cost, many businesses are employing analysts and process improvement specialists to seek out opportunities to drive down the logistical 'cost per carton'.

The past 12 months also saw further market consolidation, with fast-growing, mid-sized businesses acquiring smaller businesses that were once an industry’s backbone. Acquisitions are part of the growth story for most top tier providers, however some small to medium businesses have carved out niche markets as an alternative way of maintaining adequate margins.

Larger groups also continued their scrutiny of efficiencies, which fuelled the requirement for capital investment in technology, systems and people to deliver substantial and constant cost savings to the bottom line. There has also been a swing towards client focused operators who can manage the operational site, streamline systems, manage performance and maximise opportunities.

Changes to recruitment practices

Many companies are reducing their casual workforce in response to the downturn in work and in an attempt to ensure adequate work volumes to justify their permanent headcount. Businesses are only recruiting if absolutely necessary.

Having said this, companies are still employing casual and permanent specialists with multiple skill sets in key areas of their business, such as candidates with transport, information technology and sales skills.

Medium sized businesses continue to lead the way in attracting candidates through a more engaging culture and growth possibilities. A more detailed and thorough interview process has become the norm, with some companies choosing to add and administer psychometric testing to their selection process.

Salary movements

Given the economic downturn and return to an employer’s market that saw expectations for a candidate’s experience and quality rise significantly, the salary pressure evident over recent years waned. Salaries consequently remained stable over the last six to 12 months.

The exception was for candidates in high demand, such as supply chain analysts in Brisbane for whom typical salaries increased from $70,000 to $75,000 due to a need to identify improvements and ultimately reduce costs. Salaries also moved for project managers, although the extent of the salary increase was heavily dependent upon the overall success of the business.

Further salary pressure is expected during the later part of 2009 if commodity prices continue to fall and we see a reduction of exports.

Advice to candidates

Given higher levels of candidate availability, it is essential to be flexible in your expectations regarding salary, preferred location and industry. It is also critical to qualify and demonstrate your experience in the initial interview. Job seekers should also look at additional training, specifically to improve and develop skills that give you access to a greater range of opportunities.

For the passive job seeker our advice is to make sure you understand today’s recruitment market, as these are unusual times and job security is the key. Do not test the water to see how much money you are worth; instead look for the opportunities that will benefit your career in the years to come. Seek roles in industries that will continue to thrive during the economic downturn, some of which include FMCG, F&B, waste management and utilities.

It is also advisable to consider the longevity and stability of any role applied for.

Download the Logistics Salary Guide Tables