Nico Bogaerts (Pfizer): “There is a growing need for people with different skills and that evolution is accelerating”

6 minutes reading time

HR issues in logistics often focus on warehouses and the impact of automation and robotisation on employees and their profiles. However, the organisation of logistics is also subject to major evolutions. Think, for example, of the impact of AI on decision making or of the digitalisation of communication on the functioning of an organisation. Nico Bogaerts, Global Customs & Compliance Lead at Pfizer, shares with us his insights on these developments.

Pfizer’s presence in Belgium is significant. The US pharma group has four sites there. The most well-known is its production facility in Puurs – Pfizer’s largest in Europe and one of the largest worldwide. It specialises in vaccines and injectable drugs. Some 4,500 employees produce 500 million doses a year there. It also has a clinical research centre in Anderlecht dedicated to early clinical trials. Pfizer Belgium Luxembourg’s headquarters in Brussels not only handles commercialisation and marketing, but also the necessary authorisations and certificates with the Belgian and European authorities. Last but not least is the logistics centre in Zaventem, which is responsible for the distribution of two-thirds of Pfizer’s global production flows to 188 countries worldwide.

‘The logistics centre does not handle those products physically – that is entrusted to specialised logistics service providers in subcontracting – but takes care of coordinating flows worldwide. We have approximately 200 to 250 employees here who are responsible for customer service, handling the ‘master data’, coordinating transports, quality management, and so on. That way we can ensure that around 250,000 pallets arrive at their final destination by ship, plane, and truck from production sites worldwide,’ Nico Bogaerts explains. Most of these flows physically pass through Belgium, but the warehousing and cross-docking is therefore entrusted to external parties.

Focus on ‘People and growth‘

The production site in Puurs recently received the ‘Factory of the Future’ award from Flemish prime-minister Matthias Diependaele. This involved the combination of science and technological innovation, but also that of an organisation in which people are central. ‘Within the entire Pfizer Group – and therefore also in our Logistics Centre – the focus is on ‘people and growth’. So beyond technology, the emphasis is on people and attracting the right profiles and encouraging their growth, including that of the new generation, which is sometimes a challenge,’ he says.

‘Technology does not reduce the importance of humans. There is not less work but different work. Employees must respond to this. At Pfizer, employees can progress according to four pathways, which are largely customised. A first is ‘vertical growth’, where employees grow upwards within the organisation. The second is ‘horizontal growth’, where employees can gain broader experience and enjoy more variety in their work. The third is ‘diagonal growth’, where the employee can do something different in another position. Lastly, the fourth is ‘zigzag growth’ where he or she gains as much experience as possible and can go wider by working six months to two years in other departments or specialities,’ he states further.

‘This allows us to keep expertise in-house while giving the employee the opportunity to gain knowledge and experience. These concepts are gaining traction, especially with young people, who need variety and permanent growth.’

Cooperation with educational institutions

Prior to that growth process, it is of course important to attract the right talents. ‘In Belgium, there are very good courses in logistics, but they do not necessarily match the requirements of a specialised branch such as pharmalogistics or those of new technologies, which require new skills,’ Nico Bogaerts says.

Therefore, Pfizer has partnered with several colleges and universities to make the study more responsive to the new needs. ‘For example, we have worked with Thomas Moore College to develop a postgraduate degree in pharmalogistics. By partnering with educational institutions, we help them set up courses that create the right skills and get better access to the ‘pool of talent’. So it’s a win-win for the schools and for the industry,’ he adds.

Being able to grasp and use new technology

Exactly, there is a need for people with different skills and this evolution is accelerating. ‘We need more people who can grasp and use new technology. The role of technology and digital tools is indeed much greater than before. Take the coordination of logistics, for example. Previously, communication with logistics partners was mainly by e-mail. Today, that communication is largely automated and digitised. E-mails are still used, but for handling exceptions – exception-based reporting – and resolving problems.’

Nico Bogaerts: ‘After all, organising smooth logistics worldwide has become more difficult due to the geopolitical situation and its consequences. For example, the war in Ukraine and the sanctions against Russia have an impact on the organisation of air transport to and from Asia, because of the need to fly around Russia. The situation in the Middle East is also having an impact, for example due to Houthi rebels’ attacks on container ships in the Red Sea. Accidents such as the blockage of the Suez Canal or natural disasters also have an impact. So coordinating shipments is becoming increasingly difficult and dynamic, so you need to use as much relevant data as possible to make quick decisions.’

Artificial intelligence is only part of the solution

According to Bogaerts, artificial intelligence can help with this, but he immediately puts it into perspective: ‘AI is only part of the solution. It can help make decisions for regular transports based on lots of historical data. To react promptly to exceptional situations, you can ask AI tools to run simulations very quickly, but a human still has to make the final decision. Artificial Intelligence does not understand all aspects of a problem and so a ‘human touch’ is needed.’

So in complex situations, AI cannot replace humans, but it can help. ‘That also has an impact on the profiles of employees. You need to attract people who have a feel for AI and who know how to deal with these new tools. And who know how best to communicate about decisions and the ‘why’. There is much more data available today than in the past, which can lead to decisions that are better but not so logical at first glance. Communication is thus becoming a skill that is even more important than in the past,’ he argues.

The impact of sustainability

The focus on sustainability will also have an impact on logistics and thus on the profiles of employees, Nico Bogaerts believes. For instance, the transport of medicines is increasingly shifting from air to sea ship, which is more climate-friendly.

‘That alone requires a different expertise. But there are also times when you still have to decide very quickly whether to transport a cargo by plane or by truck. So it also requires knowledge of the principles of synchromodality, where you make the choice of the right transport mode according to sustainability, cost and time. At the Logistics Centre, we do not apply synchromodality as such – the choice of transport modes is taken by regional planning centres – but have internalised its principles in the execution of logistics operations.’

Conclusion

Although digitalisation, automation and AI will play an increasing role, the human factor remains crucial, both in monitoring, decision-making and communication, Nico Bogaerts concludes. ‘You can organise flows automatically and make them smoother, but people are still needed. Their added value consists in being able to monitor that everything runs as foreseen and, in case of ‘exceptions’, to get the logistics back on track. This added value will be best expressed by people who not only have these new skills, but also know and understand what they are doing and why they are doing it. That is the profile of the talents of the future.’

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