Nearly half of surveyed shippers and three-quarters of third-party logistics (3PL) providers said that finding, training and keeping qualified labor was their top challenge, according to a recent report. It was a problem before COVID-19 that has only worsened with the e-commerce boom.
According to the U.S. Census Bureau, 2020 e-commerce sales increased 32.4% over 2019. That spike contributed to record warehouse and storage employment levels, with more than 1.4 million workers currently supporting the industry currently, per the U.S. Bureau of Labor Statistics (BLS). BLS data also shows that September 2021 alone saw an increase of 16,000 warehouse and storage jobs.
“The need for skilled logistics workers has never been greater — particularly as warehousing and logistics operators strive to meet demand driven by faster fulfillment and higher inventory levels,” said Prologis chief legal officer and environmental, social and governance head Edward S. Nekritz in a public statement.
Prologis leases modern logistics facilities to more than 5,000 business-to-business and retail/online fulfillment customers worldwide, which makes it a major stakeholder in the race to find qualified warehouse workers.
“We know that our customers’ number one priority and one of their biggest pain points is finding talent to run their operations. At the same time, the communities we work in are really focused on trying to advance economic pathways and opportunities for residents,” said Steven Hussain, vice president of workforce programs and community relations for Prologis.
Those goals have been among the driving forces behind the San Francisco-based company’s Community Workforce Initiative, which expects to train 25,000 people for jobs in distribution, logistics and transportation by 2025. When its research revealed a need for comprehensive, online warehousing training, Prologis did something about it.
Prologis partnered with the Association for Supply Chain Management (ASCM) to create an education program for warehouse workers and others in supply chain positions looking to broaden their perspective and experience. ASCM is the largest nonprofit association for supply chain, built on a foundation of APICs certification and training spanning 60 years. ASCM is focused on driving innovation through products, services, and strategic partnerships that allow companies to optimize their supply chains.
To create the new ASCM Supply Chain Warehousing Certificate program, Prologis met with its warehouse customers, their frontline workers and community workforce development organizations to identify training gaps and fine-tune curriculum topics. In addition, ASCM reviewed all content for accuracy and made recommendations to ensure the certification addressed the needs of the larger supply chain.
“It was important to us and our collaborators at Prologis that this course wasn’t just about helping people get a warehouse job. We wanted it to be able to help them take their career to the next level, especially when there are so many opportunities in this segment today,” said Emily Bucarich, ASCM’s director of learning and instructional design.
Earning a warehousing certificate for those new to the industry has become more important to talent entering the industry, as well. A September 2021 survey from Opportunity America showed that one-quarter to one-third of credentials awarded by third-party organizations — such as ASCM — go to noncredit workforce students looking to open doors into new industries. The report adds, “What industry certifications promise students: a better bridge between what they learn in class and the skills they need to succeed on the job.”
As an industry stakeholder, Prologis understands this concept well. The company is introducing the training not only to its warehouse customers, but also to school districts, community colleges and workforce investment boards.
“What they’ve been missing is a quality credential. We can bring that to them through our collaboration with ASCM,” Hussain said.
Participants in the Supply Chain Warehousing Certificate program learn:
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Loading and shipping processes, documents, scheduling and tracking
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Order fulfillment cycles, including improving order-filling efficiency and accuracy
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Inventory management systems, categories and holding costs
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Managing customer returns
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Environmentally sustainable work practices
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Proven problem-solving processes for warehouses and distribution centers
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Different types of transportation carriers, their characteristics, and the advantages and disadvantages of each
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Typical facility performance metrics
Upon passing the exam, participants receive a digital badge to display on their LinkedIn profiles and email signatures.
In addition to offering foundational education for warehousing positions, the course provides an opportunity for other supply chain professionals to better understand the journey a product takes from its arrival to the warehouse to its final destination. APICS-certified individuals receive 20 maintenance points towards their CPIM, CSCP or CLTD designation upon course completion.
“This industry has so much opportunity that doesn’t require a four-year degree,” Hussain said. “In addition to people who want to reposition themselves from another sector and are thinking about the opportunity within logistics and warehousing, we see this as being useful to emerging leaders within companies as well as people who are trying to advance within existing supply chain or logistics companies.”
Bucarich agreed. “It provides that foundational knowledge and common language for a successful team. We’re excited to be able to offer this depth of training to an underserved market, because this course isn’t just about getting a job. It’s about excelling at that job and getting positioned for future successes,” she said.