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CAREERS IN BUSINESS LOGISTICS & SUPPLY CHAIN MANAGEMENT
CAREERS IN BUSINESS LOGISTICS & SUPPLY CHAIN MANAGEMENT
Supply Chain
Management is
the Next Step in
Business
Revolution
A Student Guide…
Logist
ics:
A Mult
i‐Dim
ension
Disciplin
e !!!
Ø UNDERSTANDING BUSINESS LOGISTICS AND SUPPLY CHAIN MANAGEMENT • Logistics : More than Transportation • SCM: What is it all about
• SCM: A NEW BUSINESS CONCEPT • Logistics: A Short History • Origin of the Word(s) • Logistics: A Multi-Dimension Discipline • Who said what
Ø INDIAN LOGISTICS INDUSTRY Ø LOGISTICS AS A PROFESSION • Logistics Hailed as a Hot Career • Kind of Organizations that Employ Logistics
Managers
• Logisticians in Demand • Career Path in Logistics • Logistics: The Future • Logistics Management Positions Ø WHO DOES WHAT
Logistics:
More than Transportation
Most people say
Logistics is getting the
right product to the
right place in the right
quantity at the right
time, in the right
condition at the right
cost. This is a complex
task that is not limited
to the truck that does
the deliver.
By its very nature,
Logistics is not a
standalone discipline. It
is intricately connected
to nearly every aspect of
business management…
From the largest automobile manufacturers to the smallest zipper producers, any product based or service based company has a need for logistics professionals to manage the flow of activities locally, nationally and internationally.
Logistics involves so many
critical business activities
that nearly every company
can be considered a
potential employer for
logistics managers.
SCM: What is it all about
Supply Chain Management is an
extension of logistics management…
Supply Chain Management is the Next Step in Business Revolution…
Operations Management / Operations Research lay the foundation for
Supply Chain Management.
One of the most significant changes in the paradigm of modern
business management is that individual business no longer
compete as solely autonomous entities, but rather as supply
chains.
Business Management has entered the era of inter-network
competition and the ultimate success of a single business will
depend on managements ability to integrate the company's
intricate network of business relationships.
Increasingly the management of multiple relationships across the
supply chain is referred to as Supply Chain Management
Supply Chain Management The New Business Concept
Supply Chain is a network of organizations that are linked directly or indirectly to fulfill a customer’s request for a product or service
SCM is a management concept that includes a set of techniques and methods to manage and control the supply chain.
Logistics Managers often referred
to as logisticians are responsible
for managing the supply chain.
Logistics: A SHORT HISTORY
The term logistics entered in the Military Terminology in the 18th century.
The term received a written definition in 1905 as 'that branch of the art of war
pertaining to the movement and supply of armies.
But, it was not until World War - II that the term began to be used pervasively
to describe the support of military forces and their equipment.
The term logistics migrated to the business sector in the 1960s as
academicians in marketing saw potential in applying the principles of military
logistics to physical distribution of consumer goods.
Most recently, the business community began viewing logistics as a
component of a larger evolving concept, supply chain management (SCM).
Beginning in the 1970s, the word logistics crept into the lexicon of the
common culture. The word is now being used with regard to supply support of
activities from church picnics to the Olympics.
Clearly, logistics as a concept and a practice has evolved over the years and is
now seen as a discipline practiced in different ways and contexts.
Logistics means different things to different people. Even professionals in the
field differ as to what logistics actually means.
To some, logistics is managing the flow and stock of materials. To others, it is
a customer support activity, a planning and engineering mechanism, or a
science of calculating requirements and promoting operational capabilities.
The dictionary treats logistics as purely a branch of military science. The
Council of Logistics Management, now, Council of Supply Chain Management
Professionals defines logistics purely in a product distribution context. The
common culture of today views logistics as the underlying details of making
something happen.
All these definitions, explicitly or implicitly, have in common the concept of
integrating many activities toward supporting an organizational objective.
Further, all have expressed or implied, a sense of meeting the material, system,
or process needs of a customer.
Origin of the Word(s)
Origin of the Word Logistics
The English word Logistics appears to have been
derived from 'logistikos‘ – Greek Word and
the french word 'logistique'.
Logistikos is rooted in the
concept of logic and means skilled in calculation.
Logistique is probably influenced
by the French loger meaning to quarter or lodge soldiers.
Hence, the combination of logic, calculation and quartering soldiers appears to have yielded the
word.
The term supply chain management was coined by consultant Keith Oliver, of
strategy consulting firm Booz Allen Hamilton in 1982.
Logistics:
A Multi‐Dimension Discipline
At a very basic level, the
word logistics refers to the
management of underlying
details of any activity
As such, logistical
management of an activity
emphasis a systems
approach…
Logistics is both a
management science and an
art; it can also be defined as
a system of reasoning
in applying systematic
knowledge to achieve
optimum solutions.
Thus, applying logistics
management principles to
different dimensions of
activities in various industries
makes it a multi-dimensional
discipline…
•Business Logistics •Healthcare Logistics •Chemical Logistics •Freight Logistics •Information Logistics •Retail Logistics •Financial Logistics •Production Logistics •Air Force Logistics •Maritime Logistics •Marketing Logistics •International Logistics •Global Logistics •Agriculture Logistics
Vision, sure. Strategy, yes. But when you go to war, you need to have both toilet paper and bullets at the right place at the right time. In other words, you must win through superior logistics. Go back to the Gulf War. After that war ended, the media stories focused on the strategy that was devised by Colin Powell and executed by Norman Schwartzkopf. For my money, the guy who won the Gulf War was Gus Pagonis, the genius who managed all of the logistics.
It doesn't matter how brilliant your vision and strategy are if you can't get the soldiers, the weapons, the vehicles, the gasoline, the chow -- the boots, for God's sake! -- to the right people, at the right place, at the right time. ( Right now, Amazon.com and a hundred of its dotkin are learning -- or failing to learn – the Gus Pagonis lesson. )”
-- Tom Peters – Rule #3: Leadership Is Confusing As Hell, Fast Company, March 2001
Leaders win through
logistics.
Logistics has evolved into a profession that values strategic thinking, analytical skills and the use of technology-based tools. Those capabilities are gender and race independent. This field is fertile ground for
talented individuals. - Nancy Haslip, Director of Logistical Services, Bank Boston, N.A. Past President, Council of Logistics
Management, now, Council of Supply Chain Management Professionals
“In addition to Tactics and Strategy, the French invented a third military science which they called Logistique, our Logistics. This is the business of moving, supplying and quartering soldiers. It stems from the French Loger, which means to quarter”, that is, “to find lodgings.”.” ‐ “Word Origins and Their Romantic Stories” by Wilfred Funk, Litt. D.)
“Logistics Planning - The wisdom to realize when working on plan A, you'll run into conflicts in executing plan B and being properly prepared, and successfully executing plan E.” -- Capt John P. Laverdure, Scott Air Force Base, HQ Air Mobility Command, 1996
Asia’s Next Major
Logistics Hotspot: India
India: The Logistics Boom
Continues…
In today’s volatile economic climate, business logistics
management is one of the major areas of
interest in the world of business to address the problems faced by an
organization
Logistics:
All the right moves…
Logistics is the hottest career out there. It links every functional area in a corporation and is vital to its success. Talk to a logistics professional and see what all the excitement is about.
‐ June S. Youngs, Vice President of Logistics, Hasbro, Inc.
Good Job & Great Pay!
Business Logistics / Supply Chain Management
as a Profession
“Logistics is the ‘real stuff.’ Successful execution is all about managing relationships. It is based more on experience, knowledge and hard work versus new information or technology. Collaborative relationships take time to mature but pay off in the long run, especially when times get tought. That’s a true competitive advantage” ‐ Logistics Manager with a chemical manufacturer, with 26+ Years of experience, living in the North Central and earning $122,000 Source: Logistics Today – 2006 Salary Survey Report
Logistics has evolved into a
profession that values
strategic thinking, analytical
skills, and the use of
technology based tools.
Those capabilities are
gender and race
independent. This field is
fertile ground for talented
individuals.
- Nancy Haslip, Director of
Logistical Services
Bank Boston, N.A.
Past President, CLM
Logistics Hailed as Hot Career
Logistics Management offers everything that you want in a career - job openings at all levels, excellent salaries, upward mobility, exciting responsibilities and worldwide opportunities within the function and throughout the company.
Wal-Mart became the world's largest retailer
with 5% of US retail spending by applying
innovative SCM techniques such as cross-
docking and year round low pricing.
(Kauffman, 2000)
The good news is that logistics is now becoming a boardroom function as opposed
to a loading dock function. -
M.Anthony Burns, Chairman, President, & CEO, Ryder System, Inc
Manufacturing Firms
- Industrial and Consumer Goods
Third Party Logistics Firms
- Warehousing, dedicated carriers
forwarders etc.
Transportation Firms
- Freight and/or Passenger
Education Organizations
- Universities and Training Firms
Government Agencies
- Military, DOT etc.
Service Institutions
- Banks, Hospitals etc.
Consulting Firms
- Strategy, Technology etc.
Merchandising Firms
- Retailers, Wholesalers, Distributors
Kind of Organizations that Employ
Logistics Managers…
Career Path in Logistics…
Your career path will be largely influenced by your skills,
interests, and personal decisions.
A broad base of business skills, knowledge of the business
processes will give you ample opportunity to begin your career
with any of the industries…
Your logistics career path can focus on a wide variety of functional areas. Some
of these include:
•Logistics Planning and Analysis
•Transportation Management
•Warehouse Operations Management
•Inventory Planning and Control
•Purchasing and Materials Management
•International Logistics Management
•Production Planning and Operations
•Supply Chain Management
•Customer Service Management
•Information Systems and Control
•Logistics Services Marketing and Sales
•Logistics Engineering
There are many potential starting points for a successful career in logistics. Manufacturers
and merchandisers offer excellent employment opportunities for new logistics managers.
Exceptional opportunities are emerging with third party logistics firms. Third party firms
provide an excellent opportunity for you to start your career, take on new challenges, and
advance your managerial skills.
Motor carriers, railroads, air carriers, and ocean carriers also offer a wide array of career
options.
6% Sales and Marketing
9% Other
15% Information Technology
18% Finance
24% International Business
28% Supply Chain Management
How satisfied are you with logistics as a career path?
Source
: Logistics T
oday – 2
006 S
alary
Surve
y Report
If you could return to school, what topic would you choose to study?
Source: CSCMP 2005 Career Patterns of
Women in Logistics
Career Path in Logistics…
Logistics: The Future !!!
The need for logisticians has just
began in India as organizations
began to exploit logistics
competency to gain competitive
advantage to increase revenues and
growth. Well executed logistics can
be a powerful marketing weapon. As
we approach 2010-2020 the
aggressive, wise management of the
supply chain will increasingly
become one of the few critical
factors for success for any industrial
/ commercial organization.
The economies of the world will be
very big in 2010 and 2020. And the
developing nations may grow
something like 5 or 6 to 14 percent
annually, representing significant
growth. And between now and 2020
worldwide trade will grow 2-3 times
faster than the growth of the
world’s gross domestic product. This
growth will have a dramatic impact
on how corporations manage their
operations and more importantly
how they manage their logistics.
Mastering increasingly complex information technology vigorously and with wisdom will be critical in coping with world growth and shifting markets. This will be one of the management’s most demanding tasks. No corporation will remain strong and competitive that cannot master information technologies. Increasingly world economies with increase in world trade sets up the need to cope with a logistics challenge almost beyond our comprehension today.
Logistics Management Positions…
Given below is a list of logistics
management positions. These
positions can be found in
organizations worldwide and may
include responsibility for interrelated
activities:
•Analyst
•Consultant
•Customer Service Manager
•Inventory control manager
•Logistics Engineer
•Logistics Manager
•Logistics Service Salesperson
•Logistics Software Manager
•Materials Manager
•Production Manager
•Supply Chain Manager
•Systems Support Manager
•Transportation Manager
•Vendor Manager
•Inventory Coordinator
•Warehouse Operations Manager
Many of the positions are not entry
level jobs. These advanced positions
are presented to give you an idea of
the long range opportunities in
logistics management.
It is revealed that some of
the skills and traits are
universal while others are
position specific. You need to
possess these universal skills
to be successful in any
logistics related position.
They include:
- People skills
- Analytical Skills
- Communication
Skills
- Computer Skills
- Flexibility
Skills needed
for logistics
managers…
Who does what
Divisional Merchandise Manager
Manages a group of buyers who select
merchandise for oder, place orders,
and stay involved in inventory
distribution for a division.
Median Base Salary: $161211
Estimating Manager
Manages and oversees the estimating
department.
Median Base Salary: $57129
Expeditor
Facilitates and expedites the flow of
materials to and from various
departments.
Median Base Salary: US $ 37732
Fleet Manager
Manages an organization's operation
and maintenance of motor vehicles.
Median Base Salary: US $ 79459
Logistics Analyst
Enhances product workflow by
analyzing and developing logistics
plans that affect production,
distribution, and inventory.
Median Base Salary: US $ 42030
Assistant Merchandise Buyer
Assists Merchandise buyer in
selecting merchandise for order,
placing order, and inventory
distribution.
Median Base Salary: US $42284
Configuration Analysis Manager
Manages the coordination and
administration of configuration
management activities.
Configuration Analyst
Analyzes changes of product design
to determine the effect on the end
product design and function and
determines and prepares
documentation necessary for
change.
Median Base Salary: US $110 849
Dispatcher
Assigns drivers and vehicles to
convey freight or passengers.
Median Base Salary: US $34,981
Distribution Manager
Manages the ordering and
distribution of products, parts, and
accessories.
Median Base Salary: US $80,220
Source: Salary.Com The Salary Information is
provided as information only
and it applies to U.S.A
Merchandise Allocator
Allocates merchandise to stores
according to warehouse and store
inventory levels.
Median Base Salary: US $ 41158
Merchandise Buyer
Selects merchandise for order, places
order, and stays involved in
inventory distribution.
Median Base Salary: US $ 41907
Merchandise Planner
Plans and forecasts for future
merchandise buys based on
historical buys, recurring buys and
current inventory levels.
Median Base Salary: US $ 47022
Methods / Procedures Analyst – I,
II, III, IV
Evaluates, maintains and improves
efficiency of organization.
Median Base Salary: US $ 43949 /
53014 / 63457 / 80020
Operations Clerk
Performs administrative tasks to
support the operations group.
Median Base Salary: US$ 23783
Operations Department Manager-I,II
Manages and directs the operations
department.
Median Base Salary: US$ 37479 / 52217
Operations Director
Directs and oversees an organization's
operational (non-manufacturing)
policies, objectives and initiatives.
Median Base Salary: US$ 23783
Operations Research Analysis
Manager
Oversees the collection and analysis of
data to evaluate operational difficulties
and make recommendations to solve
problems.
Median Base Salary: US$ 137797
Operations Research Analyst – I, II,
III, IV
Collects and Analyzes data to evaluate
operational difficulties and makes
recommendations to solve problems.
Median Base Salary: US$ 47536 / 59681 /
74436 / 97810
Operations Section Manager
Manages and directs the daily activities
of multiple operations functions.
Median Base Salary: US$ 54419
Quality Assurance Director
Responsible for planning and
directing quality assurance policies,
programs, and initiatives.
Median Base Salary: US$ 122301
Quality Manager
Manages total quality programs,
policies, and initiatives.
Median Base Salary: US$ 64002
Scheduler- I, II
Responsible for the planning and
scheduling of materials through the
production schedules.
Median Base Salary: US$ 42491 / 51317
Spares Coordination Manager
Manages the delivery of spare parts
and equipment, and scheduling of
customer repairs.
Median Base Salary: US$ 110481
Spares Coordination Supervisor
Supervises the delivery of spare parts
and equipment, and scheduling of
customer repairs.
Median Base Salary: US$ 66270
Spares Coordinator – I, II, III
Coordinates the delivery of spare
parts and equipment, and schedules
customer repairs.
Median Base Salary: US$ 50032 /
55450 / 65026 / 74636
Strategic Planning Analyst – I, II,
III, IV
Responsible for developing long
term goal and strategic objectives.
Median Base Salary: US$ 62046 /
74419 / 88815 / 19361
Strategic Planning Manager
Responsible for planning and
directing an organization's strategic
and long-range goals.
Median Base Salary: US$ 102418
Top Merchandise Planning and
Allocation Executive
Plans and directs all aspects of an
organization's merchandise
planning and allocation policies,
objectives, and initiatives.
Median Base Salary: US$ 174977
Top Supply Chain Management
Executive
Plans and directs all aspects of an
organization's supply chain policies,
objectives, and initiatives.
Median Base Salary: US$ 206556
Operations Supervisor
Supervises the daily activities of an
operations unit.
Median Base Salary: US$ 38093
Operations Team Leader
Manages and trains a team of
operations clerk.
Median Base Salary: US$ 29256
Operations Unit Manager
Manages the daily activities of an
operations unit.
Median Base Salary: US$ 44243
Process Associate – I, II, III, IV
Responsible for developing
production procedures to optimize
manufacturing and/or regulatory
requirements.
Median Base Salary: US$ 41741 / 50425
/ 64580 / 76855
Process Engineer – I, II, III
Responsible for designing and
implementing manufacturing
processes, equipment, and plants
(from pilot to fully operational).
Median Base Salary: US$ 57898 / 61219
/ 72449
Production Control Manager
Supervises, establishes and coordinates
the production schedules in a factory
environment.
Median Base Salary: US$ 80767
Production Scheduler
Plans and establishes production
schedules.
Median Base Salary: US$ 56621
Production Scheduler Manager – I, II
Manages the planning and
establishment of production schedules,
monitoring of materials inventories,
tracking of progress of production, and
reviewing of factors which affect
production schedules.
Median Base Salary: US$ 88404 / 108352
Production Scheduler Supervisor
Supervises staff of production
schedulers who plan and establish
production schedules, monitor
materials inventories, track progress of
production, and review factors which
affect production schedules.
Median Base Salary: US$ 66882
Project Administrator – I, II
Plans and coordinates project
scheduling, budgeting, and
administrative tasks.
Median Base Salary: 47138 / 54714
Top Total Quality Executive
Overseas all aspects of an
organization's total quality
function.
Median Base Salary: US$ 153279
Traffic Manager
Develops and maintains
transportation and distribution
procedures to maximize delivery
efficiency.
Median Base Salary: US$ 75291
Traffic / Rate Analyst – I, II, III
Evaluates and designs
transportation and distribution
procedures to maximize delivery
efficiency.
Median Base Salary: US$ 39595 /
49361 / 62884 / 72620
“Logistics: The Profession – As a business professional with a vested career interest in the field of logistics, you are a part of a highly dynamic profession: current global developments and technological innovations are impacting logistics today as never before. While the logistics function's contributions to a firm's competitive strength have often been "invisible" in the past, many factors have coalesced to heighten its importance and visibility in the 1990s and beyond.”
‐‐ CLM‐National What It's All About