Logistics - all the right moves

Every company dreams of achieving the seven R's - delivering the right product in the right quantity and the right condition, at the right place, at the right time, for the right customer at the right cost. Effective logistics management alone can make this possible.

IN the past, quality of products and services was the key differentiating factor for companies operating in the same market. In due course, quality and low cost became the winning combination.

Today, responsiveness to the customers' needs is the key determinant. An enterprise that caters instantly to the needs of the customer is the winner. Integrated logistics can serve as a potent tool for success in today's competitive business environment.

Logistics is an organised process of managing the flow of merchandise from the source of supply - the vendor, wholesaler or distributor - through internal processing functions like warehousing and transportation, until the merchandise is sold and delivered to the end customer.

Logistics management aims to reduce inventory-holding costs and improve profits, while enhancing customer satisfaction.

Anything can be ordered online, but receiving a tangible product is impossible. The difference between e-business success and failure lies in a company's ability to manage the logistics.

New vistas in logistics

Today logistics, the nerve centre of any market structure determines the competitive advantage in a big way. Logistics management covers a wide range of disciplines, which include:

Fleet management

Irrespective of the industry, a company's fleet of vehicles, own or hired, contributes to a major share of the operational cost, which multiplies if poorly managed.

Thus effective fleet management results in substantial savings with increased earnings.

Transportation management

A major sub function of logistics, this creates time and space utility in goods. In fact, the backbone of an entire supply chain is transportation management.

Warehouse management

Essentially involves efficient management of receiving, stocking and despatching products.

Inventory management

Every company should aim at simultaneously reducing inventory and maintain high customer service. Therefore, the real challenge lies in building customer service without increasing inventory.

Careers in logistics

Logistics and supply chain management are two of the hottest career paths and genuinely global in scope. Globalisation calls for international movement of products and efficient logistical management of supply chains from source to destination.

Logistics is now a specialised area of knowledge and therefore, necessitates training to achieve specialised skill sets. Introduction of specialised courses at various business schools, including the IIMs, stand testimony to this.

A B.E./B.Tech in automobile engineering qualifies one for a Fleet Manager. Logistics managers, Warehouse managers and Inventory managers are generally management graduates with a specialisation in operations or transportation management.

Graduates with training in warehouse and inventory management can become warehouse supervisors, store supervisors or other shop floor staff. At the executive level larger retailers like RPG and Shopper's Stop are recruiting MBAs from premier management institutes.

For the shop floor level many of them have also instituted training programmes. RPG has a formal training school called the RPG Institute of Retail Management for this purpose. Top-class logistics providers like DHL, Blue Dart, FedEx, TCI, Elbee and GATI provide attractive job opportunities.

Technology-intensive industry

Understanding the requirements of the logistics industry, various software developers have introduced simple, effective and user- friendly software packages such as Fleet Management System (FMS) that have revolutionised the job of fleet managers.

A State-of-the-art TMS (Transportation Management System) simplifies the process of booking, delivery and shipment of products through management of information. WMS/IMS (Warehouse Management Systems & Inventory Management Systems) on the other hand, provide better warehouse management and inventory control.

Track-n-Trace software empowers customers to spot their valuable orders in transit with a mouse click. Concepts like VMI (Vendor Managed Inventory) are emphasising on vendor selection since the supplier is responsible for maintaining the buyer's inventory levels.

The vendor has access to the buyer's inventory data and is responsible for generating purchase orders. Data Warehousing is an established concept in advanced nations. Information on existing and potential customers is tracked with the help of `database retailing'. Therefore, IT professionals too play a vital role in the field of logistics management.

Career Clues

Reliability is the most desired personality trait for a logistics or a warehouse manager. It is critical because employees are expected to be on time, pick orders accurately and put in extra efforts to beat the schedule.

Employees should also take pride in their job and have the right attitude required to work in a warehouse. Warehouse and store supervisors require effective communication skills to provide excellent customer support. Training in writing memos, reports and claims and communication techniques while using telephone, fax and other electronic equipment are equally important.

The application of basic mathematical techniques in warehousing procedures is also desired. Employees need to have training in the use of personal protective equipment, fire safety, warehouse security and safety procedures and manual lifting techniques.

High salaries, flexible timings, profit sharing and continuous training are some of the competitive benefits for employees in the logistics industry.

Many a young graduate attracted by these benefits enter this field, which earlier catered to a very limited group of people.

SARADA TUMMALA

saradaT.hyd@careercommunity.co.in