Review: With over one million new jobs created annually, what talent gaps exist in the logistics industry?

Release date:

2025-01-24

Author:

Jinhua Logistics

While technological progress drives economic transformation and industrial upgrading, it also gives rise to numerous new professions and job opportunities. At a relevant conference, the National Development and Reform Commission noted significant shortages of skilled professionals in fields such as drone operators, new-energy vehicle research and maintenance, modern logistics, and smart elderly care. It called for developing new‑type productive forces tailored to local conditions and creating more knowledge‑ and skill‑based jobs. In recent years, higher vocational colleges in Jiangsu Province have closely aligned themselves with emerging industries, dynamically adjusting their departments and program offerings. By collaborating with governments and industry partners, they have brought cutting‑edge production lines into campus training facilities, enabling batches of highly qualified technical and skilled personnel—prepared for these burgeoning sectors—to transition directly from school to factory upon graduation.

With delivery drivers bustling through the streets, how could there be a shortage of workers?

While technological progress drives economic transformation and industrial upgrading, it also gives rise to numerous new professions and employment opportunities. At a relevant conference, the National Development and Reform Commission stated that, There is a significant shortage of skilled professionals in sectors such as drone operation, new-energy vehicle research and maintenance, modern logistics, and smart elderly care. It calls for developing new‑type productive forces tailored to local conditions and creating more knowledge‑ and skill‑based jobs.

In recent years, higher vocational colleges in Jiangsu Province have closely aligned themselves with emerging industries, dynamically adjusting their departments and program offerings. Working in tandem with government and industry partners, they have brought cutting-edge production lines into campus training facilities, enabling wave after wave of high-caliber technical and skilled professionals tailored to these burgeoning sectors to transition directly from the classroom to the factory floor upon graduation.

On January 15, the first installment of the series “Bridging the Talent Gap in Emerging Industries” featured reporters visiting relevant enterprises and higher vocational colleges. The piece highlighted the current state of emerging industry development and the acute shortage of skilled personnel, while showcasing how Jiangsu’s vocational institutions are actively cultivating urgently needed talent through school–enterprise collaboration and industry–education integration. It also urged local governments and educational institutions to leverage vocational education and skills training to boost employment, create new job‑creation opportunities, and strengthen the employment‑generating impact of emerging industries.

The logistics industry connects production and supply on one end with consumer demand on the other, serving as a barometer of economic development and consumer vitality. It helps businesses reduce costs and boost efficiency while safeguarding the customer experience, ensuring that the flow of goods remains smooth and unimpeded.

Li Weihua, Dean of the School of Digital Commerce at Jiangsu Institute of Economics and Trade Technology, stated: “When it comes to logistics, many people immediately think of delivery services. With couriers bustling through the streets, how could there be a shortage of workers? In reality, however, express delivery accounts for only a small share of the entire logistics industry. Taking 2023 as an example, the nation’s total social logistics volume reached 352.4 trillion yuan, while revenue from express delivery services amounted to just 1.2 trillion yuan.”

Modern logistics encompasses both consumer‑oriented and production‑oriented logistics. Beyond delivery couriers, the modern logistics sector also requires multidisciplinary talent in areas such as supply chain management, warehousing and distribution, transportation planning and scheduling, logistics information systems, cold‑chain logistics, and cross‑border e‑commerce logistics. In recent years, driven by advances in big data, the Internet of Things, artificial intelligence, and other technologies, modern logistics has accelerated its transition toward intelligent operations, boosting both the quantity and quality of services. Huichuan New Energy Vehicle Technology (Changzhou) Co., Ltd. is a provider of electric powertrain system solutions, with an annual production capacity of 1.5 million sets of critical components for new energy vehicles. In the smart logistics warehouse workshop built by Cainiao Logistics, workers simply use forklifts to deliver raw materials to the conveyor line; the system then automatically recommends storage locations based on inbound material data and stores the materials accordingly. When material‑usage requests are issued, the materials are automatically retrieved and conveyed to the production line via AGV mobile robots, achieving near‑complete automation throughout the process.

Cainiao Logistics — Chen Liuqiang, Project Manager of the Huichuan New Energy Smart Logistics System, stated: “It can achieve unified scheduling across multiple scenarios and devices with high efficiency and stability, enabling integrated management, enhancing overall operational efficiency, and reducing hardware capital expenditures.”

Zhang Chuan, Director of the Planning and Logistics Department at Huichuan New Energy Vehicle Technology (Changzhou) Co., Ltd., stated: “Operational efficiency has improved by more than 60%, which has been a significant boost to our quality control and the accuracy of material issuance.”

At the SF Fengtai Industrial Park in Nanjing Airport, a fully automated sorting system spanning three levels operates at high speed, capable of processing 60,000 parcels per hour. As of the end of 2023, SF Fengtai has established 70 logistics industrial parks across 53 cities nationwide.

“There are also a great many positions available,” said Xu Jing, Public Affairs Manager at Jiangsu SF Express Co., Ltd. “For example, even a highly automated sorting system requires a dedicated team for maintenance. Similarly, monitoring logistics routes in the backend calls for specialized teams. Of course, this also places higher technical demands on our employees. Take our equipment‑maintenance team, for instance: before they can take up their posts, they must obtain the relevant maintenance qualifications and hold the requisite certifications.”

Data from the China Federation of Logistics and Purchasing show that, China’s logistics market has ranked first globally for many consecutive years, with over 400,000 logistics‑related legal entities and more than 55 million logistics professionals, generating annual employment demand for over one million new jobs. Meanwhile, the number of graduates from supply chain and modern logistics programs at specialized institutions stands at only 170,000 per year, falling far short of meeting the industry’s growing needs.

Li Weihua said, “The shortage of high‑end management talent in the logistics market stems from multiple factors, encompassing talent development, industry perception, technological advancement, and compensation and benefits. The logistics sector is undergoing rapid technological transformation, with the adoption of automation, artificial intelligence, and big data analytics. This necessitates that managers continuously acquire new technical skills; however, the current academic education and training systems may struggle to keep pace with this rapid evolution.”

Warehousing and distribution is a critical component of logistics, encompassing a range of activities such as storage, inventory management, and order picking. Traditionally, companies expected employees in this role to be proficient in operating warehouse management systems, handling inbound and outbound shipments, managing inventory, and lifting heavy items. However, the rise of smart logistics has ushered in significant changes for this position.

Qian Tingxian, a member of the National Vocational Education Teaching Steering Committee for Postal and Express Delivery and a professor at Jiangsu Institute of Economics and Trade Technology, stated: “Today, employees in this role are expected to possess solid data‑analysis skills, enabling them to interpret and leverage data to optimize inventory management and delivery efficiency. They must also quickly become proficient in deploying new technologies such as robotic picking systems and automated sorting systems. In addition to traditional warehouse management software, they are required to master a broader range of tools, including ERP systems and supply chain management software.”

At Jiangsu Institute of Economics and Trade Vocational Technology, the Modern Logistics Management program is one of the core specialties within the institution’s high-level specialty cluster under the national “Double High Plan.” It equips students with professional competencies in market development, procurement, warehousing and distribution, transportation, customer service, express delivery management, and cost control. Graduates typically secure positions such as logistics project manager, logistics supervisor, supply chain operations specialist, or express delivery station manager.

During an interview, Wei Haijun, a corporate mentor at Jiangsu Institute of Economics and Trade Vocational Technology, was teaching a class. He explained: “In this session, we’re focusing on the delivery methods used by autonomous vehicles. Our goal is for students to gain a deeper understanding of automated parcel sorting, unmanned logistics delivery, and the smart‑technology solutions employed at our service stations.”

During Jiangsu Province’s 2025 Autumn Recruitment Month for Regular College Graduates, themed “Serving New‑Quality Productivity: Strengthening Industry‑University Linkages to Boost Employment,” reporters observed that the logistics sector attracted a large number of participating companies and substantial hiring demand.

“We hope more recent graduates will join our logistics industry, as it is a sector with tremendous growth potential,” said Liu Wei, HR Manager at the Nanjing branch of Best Logistics Technology (China) Co., Ltd.

Experts are calling on the government, educational institutions, industry enterprises, and all sectors of society to join forces in addressing the acute shortage of talent in the modern logistics sector.

Qian Tingxian suggests: “The government should introduce relevant policies such as tax incentives and financial subsidies, while vocational institutions should deepen school–enterprise collaboration and integrate industry with education, restructuring their curriculum and practical training systems. We also recommend that industry players support schools in implementing order-based talent cultivation, offer competitive compensation and benefits, establish robust promotion pathways and training programs, and provide employees with opportunities and platforms for career development. Along this journey, we hope that students and parents will shed outdated stereotypes about the logistics sector, recognize the promising prospects of modern logistics and the trends toward digitalization, intelligence, and information technology, and thereby enhance their understanding of and interest in the industry.”

Gathering strength to plan for the long term, igniting the future! — New Year Address by Wu Zhaowei, General Manager of Yantai Jinhua Logistics Co., Ltd.

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