Supply Chain and Distribution

Supply Chain and Distribution

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Detailed pathways for Supply Chain and Distribution

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Who's this plan for?
Logistics
Warehousing and storage
Customs and freight support services
Postal and courier services
Supply chain business

The supply chain and distribution sectors in Aotearoa New Zealand are crucial to the country's day-to-day running. The logistics sector reflects the complex supply chain of order processing, inventory management, and distribution. It comprises our ports (air, sea, and land) operations such as customs clearance and freight forwarding, third-party logistics, and a large, interconnected workforce encompassing road, rail, sea, and air transport. The supply chain and distribution sector employed 32,007 people in 2023, a highly diverse workforce. Forecasts show that the sector will need to fill over 11,100 job openings over the next five years, an average of 2,200 per year, to meet the industries' need to grow and ensure continued productivity (Infometrics 2024). Our industries face global talent competition, particularly in areas of technical skill.

Overview

What matters to Industry Matters to us

Hanga-Aro-Rau engages with the sector through our Industry Stakeholder Group (ISG) and our National Industry Advisory Group (NIAG) composed of industry leaders from around the country. This is supported through regular site visits and engagement with sector associations, business owners and key stakeholders annually. Hanga-Aro-Rau also works with Ringa Hora WDC in this area, as they are responsible for distribution. We have heard what issues the supply chain and distribution sector is facing specifically and below have outlined our planned actions to address each priority.

Strong Workforce Pipeline
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In addition to the Cross-Sector Action Plan, which identifies the common pain points and actions identified across the nine sectors, there are a number of significant challenges to attracting and retaining talent in the supply chain and distribution sector, including: 

  1. Support amid regional variability: The sector's regional variability, coupled with supply chain disruptions, climate change impacts, and geopolitical complexities, requires greater support to retain talent. 

What action is Hanga-Aro-Rau taking?

In addition to the actions outlined in our Cross-Sector Action Plan, specific actions aligned with the supply chain and distribution sector to support a strong Strong Workforce pipeline are:

Developing technological solutions: Further developing technological and training solutions to support different learning styles, including on-the-job learning and the use of AI and multi-learning apps to assist neurodiverse workers and those with language barriers.

Scope project for older workers: Initiating a project focused on older workers to address their specific needs within the sector.

Promoting continuous development: Highlighting continuous development opportunities within the supply chain and distribution sector to promote it as a long-term career option with pathways for growth and technological innovation.

Support for Pacific workforce: Scoping tangible actions in Lumana’i o Tangata Moana action plan, there is a focus on supporting Pacific learners and workers through talent attraction, retention and engagement with a particular target to increase community engagement across regional Pacific communities. This action plan is a guiding tool for industry to identify and develop education and training solutions to prepare Pacific peoples for emerging opportunities. It also presents confident approaches to building Pacific cultural capabilities to support the Pacific workforce.

Qualifications and Recognition Challenges
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In addition to the Cross-Sector Action Plan, which identifies the common pain points and actions identified across the nine sectors, there are a number of significant challenges to qualifications and recognition in the supply chain and distribution sector, including:

  1. Revising tertiary qualifications: Identifying the need to revise the tertiary supply chain and distribution provision to better support Māori and Pacific learners in the logistics workforce, with Hanga-Aro-Rau positioned to facilitate this revision through its network of stakeholders.

What action is Hanga-Aro-Rau taking?

In addition to the Cross Sector Action Plan which identifies the common pain points and actions identified across the nine sectors, there are a number of significant challenges to qualifications and recognition in the supply chain and distribution sector, these include:

Completion of digital systems for manufacturing micro-credential:

Hanga-Aro-Rau is working to complete the Digital Systems for Manufacturing Micro-credential* registration on the NZQA framework in 2024, aiming to address immediate skill gaps in digital technologies.

Advocate for increased uptake: Hanga-Aro-Rau advocates for increased uptake of existing Digital Skills for Manufacturing Micro-credential*, ensuring that industry professionals have access to relevant training opportunities.

Support for qualification review: Hanga-Aro-Rau supports industry voice in the review of Competitive Systems and Practices Qualifications, ensuring they are fit for purpose to support improvement processes in manufacturing environments, as well as other sectors, including supply chain and distribution.

Support for Pacific learners: Hanga-Aro-Rau is scoping an initiative to create clear opportunities from education and training to employment for Pacific learners in Regional New Zealand, aligning with Lumana’i Priority Goal 3 and addressing specific needs within the Pacific community. Groundwork is being laid for micro-credentials and learning opportunities tailored for the older and experienced Pacific workforce, addressing Lumana’i Priority Goal 4.

From working directly with industry and understanding their needs, Hanga-Aro-Rau is currently working on the following qualifications: 

  • New Zealand Certificate in Distribution (Level 3)
  • New Zealand Certificate in Distribution (Level 4)
  • New Zealand Certificate in Supply Chain Management (Level 5)  
  • New Zealand Diploma in Supply Chain Management (Level 6) 

You can find more information about how to get involved here. And follow the links to find out more about interim rulings, or quals reviews coming up from Hanga-Aro-Rau.

* While it is entitled Completion of Digital Systems for Manufacturing', the skills taught are transferrable to other sectors, including supply chain and manufacturing.

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Size of the sector

GDP: In 2023, the supply chain and distribution sector contributed $5.3 billion to the national GDP, which is 1.4% of the total economy.
No. of businesses: The growth rate of business units followed the 9% growth rate of total NZ economy. In 2023 there were 6,504 business units.
Māori-owned businesses: (2020) The sector had 187, or 8% (in 1/3 where ownership data was available).

Employment and people

Forecast: Employment is forecast exceed 35,000 by 2028 with around 4000 more in 2029 than in 2023, with 12% growth for the next 5 years.
Number of Māori employed.
Ethnicity data for sector
Age breakdown:15 to 24-year-olds was 14% (2015 and 2020), 25-34-year-olds rose from 24%-26%, 55+ age group remained around 20% over the same period.
Gender split: The proportion of women in the workforce has gradually declined from 41% in 2015 to 39% in 2020.

Trends and Forecasts

New entrants: From 7,000 to 8,400 between 2015 and 2021. Most from other industries, showing opportunity for attraction.
Retention of new entrants: Out of the new entrants in 2015, the proportion of each age group of new entrants who remained after 5 years is as follows:
Overall retention: Of the 2015 workforce, 39% remained in the industry after 5 years, and 35% remained in the same job after 5 years.
Forecast: 11,100 openings over the next 5 years (average 2,200 p/a) 28% due to growth and 72% due to workers leaving/retiring.

Download Supply Chain and Distribution Pathways

Explore Supply Chain and Distribution Qualification Pathways document today and take the first step towards realising your potential.

Detailed pathways for Supply Chain and Distribution

View the flexible options to fit learning preferences
Download Pathway

We want to hear from you

These Workforce Development Plans are our functions in action and remain agile to changing Industry and VET sector needs. We encourage and seek continual feedback, so if you would like to contact our team, please email info@hangaarorau.nz