
With globalisation transforming the face of European trade and Europe itself maturing in terms of both size and complexity, the need to strengthen cooperation in order to build a tighter, more efficient and cost-effective supply chain has never been greater. EU Infrastructure speaks with Graham Ewer, President of the European Logistics Association to find out more about the objectives and drivers behind the organisation.
The European Logistics Association, a not-for-profit organisation based in Brussels, is a federation of some 30 professional member associations, covering most of Europe, as well as a few from outside the region. Largely comprised of volunteers, of which the Association’s President, Graham Ewer, is one, the organization exists to do certain key things. “The most important of these is to provide a neutral forum for European logistics professionals to work together,” says Ewer, “with a close second being our work towards the creation of a common European standard for logistics professionals.”
The Association also strives to champion logistics in Europe, and organises workshops and a series of committees, which investigate certain aspects of logistics.
At the core of the ELA is the concept of greater cooperation and sharing of best practices among logistics professionals in Europe and its formation back in 1984 was based on the recognition that the region would only be competitive in this field if it could do just that. Ewer outlines some of the challenges in achieving this, saying: “In a region as patchworked as Europe, comprised of a group of member states that are all quite unique in themselves, there has been and still is a real need to share best practices.”
The need to share is also being driven by globalisation, with a growing realisation that as business goes global it will require a different, more cooperative approach than in the past. “People need to work together, because on a global scene it’s generally very difficult for companies to have all the competencies they need,” explains Ewer. “There is now a new understanding of the need for cooperation in business, probably well described by the emerging term ‘coopertition’. Companies need to depend upon and to engage their suppliers, so it’s more about changing business process than it is do with technology.”
There are also the challenges associated with the industry’s legacy of processes and technology that, in their diversity, can act as barriers to effective cooperation. Ewer draws a comparison with Europe’s rail infrastructure today, where loading gauge differences between national railway networks still render the through-running of loads highly problematic. However, as far as a lack of IT interoperability being a real driver of cooperation, Ewer is far from convinced. “I think IT is progressing so fast that it’s now more a question of linking the different systems together than it is about seeking a monolithic common system of overwhelming complexity.”
But perhaps more important than addressing any issues of technology is changing the attitudes of those in the industry – instilling the importance of cooperation in the first place. Ewer believes this is a cultural issue that will be with us for a long time to come. “It’s essential that people understand how vital it is to work together and get motivated to do so,” he says. “Cooperation isn’t easy, especially in Europe where things are greatly complicated by the nature of the Union and our cultural differences.”
He also points to the need to share information and to ensure professionals in supply and logistics are equipped with the necessary skills. “We now demand a great deal from people,” says Ewer “gone are the days when you could specialise in a narrow field. If we are going to succeed, people must have a considerable breadth of knowledge and skills in order to understand where their own role fits in the supply chain and how then to act accordingly.”
But achieving someone with adequate knowledge of what is today a very extensive and complex global supply chain but who is also a specialist, is no mean task. As Ewer explains, “it requires teaching, experience and time to ensure people are really useful and competent. While Europe has a good background of innovation and practical quality that should give us the edge in the future, we will have to work at that to compete on a global scale in future.”
The European Logistics Association plays an important role in raising the competencies of professionals in the industry, as custodians of a unique system of certification that sets the standards necessary for European logistics professionals. The European Certification Board for Logistics (ECBL) oversees the certification programme, which is conducted in each of its member countries, and ensures that the standard of competencies are standard across the region.
Ewer explains that the programme is targeted at three levels within supply chain and logistics business – the supervisory, operational management, and senior or strategic levels. “We layer our qualifications in terms of junior, senior and master level against the competencies required. What the standards seek to do is to establish common modules of knowledge that are required to perform at the level of competence required. We are constantly seeking to place these competencies in the broader context of the supply chain, so that people understand where their own role fits and how to apply their competences.”
When it comes to the future of the logistics and supply chain industry in Europe, and the possible trends that we might see emerging in the field, Ewer believes it is of more relevance and interest to look to the changes taking place in Europe as a whole. “The challenges that lie ahead of us in logistics are well exposed – they centre on globalisation and the various requirements on our business style that comes with that. Both this and the growing complexity of the supply chain are driving the need for greater cooperation.” He adds that the issue of sustainability is also becoming increasingly important to us, highlighting the impact that rising fuels prices, such as those witnessed as a result of recent events in Iran, can have on European trade. “If fuel becomes very expensive,” says Ewer “it could change the shape of Europe appreciably – we could find that it is more economic to generate more of our own fuels and thus become much more of an internal market.”
“The real issue, however, for European logistics today is the political situation – the way we’re organised,” says Ewer, who believes that on a working level in the EU, we haven’t quite got our processes right yet. “We are now 25, and that requires better processes to enable faster decision-making in trade matters. We have a nasty habit in Europe of always being on the back foot, because we lack agility.”
As we are increasingly realising in Europe, agility is crucial if we are to survive on the global stage. The sluggish rate at which we are currently able to reach a decision-making point is a real challenge facing European politicians in the years to come. As Ewer points out: “I see the debate about the Constitution needing at the moment to be less about high ideals and rather more about getting better at making decisions and implementing them.”
Ewer concludes by highlighting a final challenge facing the sector looking forward, and an issue central to the work of the ELA – the continuing need to keep people abreast of events in a rapidly changing world. “The time is takes to get people properly trained in this industry should not be underestimated,” warns Ewer. “We live in an age where some elements around us such as technology are developing at a very fast pace, which is possibly even accelerating. This can lead to problems in maintaining the knowledge and skills of those in the industry; we have a case of needing young heads on old shoulders – people abreast of, and open to, change, but with the judgement that comes from experience and learning. At the heart of the supply chain and logistics sector is the execution of trade through systems that are able to flex and facilitate – so addressing this issue of knowledge transfer and information sharing is a hugely important area for us.”
Graham Ewer
Ewer was elected President of the European Logistics Association (ELA) in 2004 for a 2 year period, working as necessary from the ELA Head Office in Brussels.
He joined the Chartered Institute of Logistics and Transport – the UK’s leading professional body for those engaged in logistics and transport – as Chief Executive, immediately after its formation in 1999, completing his term in 2004. He has maintained a wide range of international activities and as a member of the Council of the international CILT, has played a leading part in the development of that body through his role in its Strategic Working Group.
Ewer has been a Board Member of the European Certification Board for Logistics (ECBL) for four years, acting as Secretary to its General Assembly and Board.