Importance of Logisics in Industry

An enterprise that caters instantly to the needs of the customer is the winner and sound logistics management ensures just that.

It’s all about delivering the right thing, at the right place, at the right time. That is the essence that drives logistics management. Logistics management deals with “that part of supply chain management that plans, implements and controls the efficiency, effective, forward and reverse flow and storage of goods, services and related information between the point of origin and the point of consumption”.

Industry wise:

Managing the inflow of goods, services, manpower as well as information to cater to the supply chain is what logistics management is all about. It is of utmost importance in the implementation of any project, marketing or manufacturing process. And here in lies the need for trained logistics management employees.

According to a recent survey conducted by Cygnus Business Consulting and Research, the logistics industry accounts for 11.8 to 13 percent of the GDP. This is much better a statistics than that in many developed countries.

Core areas:

Logistics management can be of two broad types. Inbound logistics with internal focus which involves procurement of raw materials and supply of the same; outbound logistics with external focus which entails distribution of finished products to end sources. That apart storage, loading, unloading, packaging, distribution etc are the other areas that are covered under logistics management. Freight, cargo handling, etc are also important areas.

Logistics management is by far an integral part of the service industry. It is dependent essentially on the skills sets and mind frame of the employees. While a logistics manager has to keep in mind the demands of the buyer he also has to analyze well his likes and dislikes. In logistics management, an employee can be trained either in the area of operations management network management, route optimization, cargo, handling, supply chain or they can be part of the usual marketing, finance or sales team. Operations managers (OM) are those who are in real demand and they take care of the distribution of goods and products and the relevant planning organization and culmination of the entire process.

Apart from big international names like DHL, FedEx, TNT, etc, there’s ample scope for work in many other MNCs Home-grown biggies like Tata Steel or Ispat or Container Corporation of India Limited also have a solid logistics team to support their distribution network. While looking at the right candidates, there’s always preference for management grads trained in supply chain management. While their technical qualifications are important, they are also tested for their positive mindsets and logical thinking abilities.

Logistics management is largely a part of the knowledge industry and likewise a fixed training is essential to acquire excellence in this field of work. The IIMs along with a number of national and international Institutes offer courses on logistics and supply chain management.

Any candidate beginning his career after passing out from any of these institutes can expect a starting salary between15,000 to 25,000. With hard work, diligence and the right approach to a problem, a candidate can expect a sizeable jump in his pay packet.

Institute Watch

1. XLRI, Jamshedpur
2. IIM Bangalore and Calcutta
3. School of Business Logistics, Chennai
4. Army Institute of Fashion and Design, Bangalore
5. IISWBM, Kolkata
6. Trade Wings Institute of Management (TIM) Mumbai

While we talk of education in logistics the candidates absorbed or recruited can make immense contribution by savings annually a few crores of rupees in large corporate companies. How? Take the practical example of RIL. In the case of a bulk raw material called PTA they initially packed the powder in 25 kgs. HDPE Bags and were able to develop with the help of transport contractor to supply to their big customers about 6 hours traveling time by road in bulk powdery form in the tanker like trucks. The product is pumped out at customer’s site directly into a digester tank. This saves the packing costs, handling labor charges and maintaining inventories. For safety sake solid packed material of 2/3 days inventory is kept with the customer, which is used up within a stipulated period. Payment is made only after usage. The saving costs are shared both by the supplier and customer.