The logistics sector is a key pillar of Singapore's economy, playing a vital role in supporting the nation's global trade and supply chains. Driven by the rapid expansion of e-commerce and advancements in technology, the logistics sector has experienced significant growth as the world emerges into the post-covid era,. As the sector continues to evolve, it is crucial to understand the upcoming trends and technologies that will shape the job roles and skills required for the workforce to stay competitive in the market.

Currently, the logistics sector employs a wide range of professionals, from warehouse operations executive, depot/hub operations supervisor, forklift operator, traffic/dispatch coordinator, customer service manager and brokerage/freight supervisor . However, with the adoption of Industry 4.0 technologies – artificial intelligence (AI), robotics, automation systems and data analytics – these job roles will undergo significant transformations.

Technology and Industry 4.0 are set to revolutionise the logistics sector, improving operational efficiency, visibility, sustainability, and the last mile delivery experience. Businesses that can effectively leverage these technologies will be best positioned to succeed in the future.

One of the key trends impacting the sector is the adoption of Industry 4.0 technologies. Industry 4.0 refers to the use of advanced technologies such as the Internet of Things (IoT), artificial intelligence (AI), and big data analytics to create smart factories and supply chains. In the logistics sector, Industry 4.0 technologies can help companies achieve greater efficiency, flexibility and productivity in their operations.

For example, Warehouse Management Systems (WMS) play a crucial role in improving logistics operational efficiency, by streamlining and automating various warehouse processes.

Autonomous drones or robots, together with barcode and QR code scanners and RFID technology can automate counting inventory. Automated Storage and Retrieval Systems (AS/RS) independently retrieves items in storage facilities, resulting in faster and more accurate order fulfilment and improved customer satisfaction.

IoT devices can be used to track and monitor shipments in real-time, while AI and big data analytics can be used to optimise warehouse layouts and transportation routes. Predictive maintenance can identify potential issues before they occur, and green technologies can reduce the industry's environmental impact.

High Impact on Logistics Jobs

In the logistics sector, approximately 20 of job roles studied, totalling 11 roles, will undergo displacement or require major redesign as a result of the impact of Industry 4.0.

These changes are primarily driven by the automation of physical tasks performed in predictable environments, such as operating machinery, and sorting and routing goods. Additionally, tasks related to scheduling, coordination, and documentation can be significantly enhanced in terms of efficiency and speed through the adoption of Industry 4.0 technologies.

While some job roles may face a high degree of change, they will not become obsolete but rather be redesigned for new tasks. As workers adapt, their roles will evolve, requiring broader skills and additional responsibilities. This ensures their continued relevance in the transformed work environment.

High-impact logistics job roles facing displacement or requiring major redesign

The adoption of Industry 4.0 technologies also spurs the creation of new job opportunities in the logistics sector. Here are some of the emerging job opportunities:

• Data Scientist: Data scientists are responsible for analysing and interpreting data related to logistics processes. They use data to identify trends and patterns and make data-driven decisions to improve efficiency and reduce costs.
• Machine Learning Engineer: Machine learning engineers are responsible for developing and implementing machine learning algorithms and models to optimise supply chain operations. They need to have knowledge of machine learning techniques and tools, as well as programming skills.
• Solution/Application Architect: Solution/application architects are responsible for designing and developing software applications to support logistics operations. They need to have knowledge of software development methodologies and technologies, as well as business requirements and constraints.

As the sector increasingly relies on data-driven decision-making, professionals will need to develop expertise in big data analytics, handling and analysing large datasets to identify trends and patterns that can drive operational improvements. Augmented reality (AR) applications will also become more important, as this technology can assist in tasks such as warehouse navigation and robotic and automation system equipment maintenance, making knowledge and experience in AR application development valuable.

Furthermore, advanced digital acumen will be crucial, as digital technologies become more deeply integrated into the industry. Professionals must be able to adapt to emerging technologies, understand their impact on business processes, and leverage them to enhance efficiency, productivity, and innovation in the logistics sector.

The Skills Framework

The Skills Framework (SFw) is a SkillsFuture initiative, designed to promote skills mastery and lifelong learning for the Singapore workforce.

For more information on each job role (complete list of skills, critical work functions and key tasks), please refer to Skills Framework for Logistics.