New way to lead: Blending experience and innovation in logistics
In the logistics industry, experience has long been regarded as the ultimate measure of leadership. We've long believed that to steer the complexities of supply chain management, international trade and warehousing, you need more than just book smarts. You need deep, on-the-ground familiarity with regulatory frameworks, market fluctuations, and stakeholder management, the kind of knowledge that can only be earned over decades.
For decades, the logistics industry has been a 'gerontocracy,' with leaders in their 60s and 70s at the helm. This tradition is rooted in the belief that navigating the complexities of supply chain management, international trade and regulatory frameworks requires deep, on-the-ground knowledge that can only be acquired over a long career.
Senior logistics executives possess a wealth of knowledge that textbooks can't teach. Their expertise comes from years of navigating crises, negotiating with difficult partners, and optimizing complex transport systems. For them, a challenge like port congestion isn't just a technical problem; it's an exercise in seasoned judgment.
In Sabah, for instance, experienced managers at Sepanggar Bay Container Port (SBCP) have successfully addressed congestion by prioritizing perishable goods and implementing off-peak berths. Their ability to balance operational demands with customer needs is a testament to their deep regional understanding. Similarly, in East Malaysia, seasoned customs officials and port authorities rely on discreet diplomacy to manage cross-border logistics with countries like Brunei and Indonesia, ensuring trade continuity without escalating tensions.
Nationally, the value of experienced leadership was profoundly demonstrated during the Covid-19 pandemic. Veteran leaders at Port Klang mitigated severe congestion by forming multi-agency teams and launching 24-hour clearance operations. Their institutional memory and crisis management skills were vital in maintaining national supply chains for critical goods.
Beyond technical expertise, older leaders are custodians of invaluable relationships with key stakeholders — from customs officials and shipping lines to multinational clients. These relationships, built over years, are a foundation of stability and trust. In many family-owned businesses, older leaders also symbolize continuity and a sense of 'corporate parenthood,' fostering a stable and cohesive work culture.
While the value of seasoned leadership is undeniable, an over-reliance on it can be detrimental in today's rapidly evolving logistics landscape. The industry is undergoing a tectonic shift driven by several forces:
· Digitization and Automation: Technologies like AI, IoT, and blockchain are no longer optional upgrades but strategic necessities.
· E-commerce and Consumer Expectations: The rise in same-day delivery and real-time tracking has reshaped the logistics service model, making agility and digital transparency standard expectations.
· Sustainability Pressures: The industry is under pressure to decarbonize rapidly, from carbon footprint reporting to green port initiatives.
· Geopolitical Volatility: Trade wars, pandemic disruptions, and climate-related disasters demand dynamic and flexible response systems.
In this environment, leaders must not only understand these changes but also have the foresight to drive transformation. A significant risk of a gerontocratic structure is its tendency to resist change. An older executive, for example, might be skeptical of new technologies like blockchain for customs clearance, preferring the 'manual checklists' that have reliably served the company for decades. This divergence in perspective can stall crucial innovation.
An over-reliance on aged leadership can also stifle younger voices. When leadership roles are dominated by seniors, promising young professionals may feel undervalued, and their ideas dismissed as 'impractical.'
This creates a toxic work culture and fuels a talent exodus, as young logisticians are frustrated by a lack of upward mobility and leave for startups or more progressive firms. Given the industry's existing skills gap in areas like data analytics and automation, it cannot afford to lose this talent.
Moreover, a lack of succession planning is a critical risk. If older leaders suddenly depart without a proper handover plan, the entire organization can be destabilized, and the very stability they worked to protect can quickly fall apart.
To remain resilient and competitive, logistics firms must adopt a hybrid leadership model that acknowledges the contributions of experienced leaders while intentionally creating opportunities for younger professionals to lead and innovate.
Intergenerational collaboration should be institutionalized through mentorship programs, reverse mentoring (where younger employees teach older ones about new technologies), and cross-functional innovation teams. This creates a two-way transfer of knowledge: strategic foresight from seniors and digital agility from juniors.
Succession planning must also become a strategic priority. Organizations should identify high-potential talent early, provide leadership training, and empower them with real decision-making authority. This staged transition not only ensures continuity but also fosters innovation from within.
Finally, the composition of boards in logistics companies should reflect generational diversity. Bringing in younger board members or advisors who understand sustainability metrics and digital transformation can challenge gerontocratic inertia.
The logistics industry is at a crossroads. The path forward is not about discarding experienced leaders or blindly chasing youth. Success lies in building an organizational culture that values wisdom and welcomes change. Aged leaders must recognize that their legacy will be defined not by how long they held power, but by how well they prepared the next generation to lead.
Every year, August 21 is set aside as a day to honor the wisdom, experience, and contributions of our senior citizens. It serves as a timely reminder to recognize the vital role older generations continue to play in shaping our communities. From their lifetime of service to the knowledge they pass on, seniors are a pillar of strength and continuity.
This day is not only about appreciation but also about raising awareness of the challenges our elderly may face, including health concerns, isolation, and a need for stronger societal support. By acknowledging both their past achievements and present needs, we uphold their dignity and worth.
Just as we reflect on the mistakes of history to learn and grow, we must also celebrate the accomplishments of those who came before us. In a world that often feels fractured and uncertain, recognizing the positive legacies of the past can inspire hope and remind us that progress is possible.
Let us not allow their contributions to fade into silence. On this day — and every day — let's stand in respect and gratitude for our elders.
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