Logistics?? What is it? Why everyone is talking about it? And Why you should learn Logistics?
So many questions on Logistics?
Alright. Let’s see Why you should learn Logistics…
We have spoken on What is Logistics, Reverse Logistics, E-Logistics and a separate article on inbound and outbound logistics.
You should read these articles to have a good understanding of these topics. Here we will see the real reasons for why learning Logistics is important.
The Scope of Logistics is vast. There is no work in the world with “No Logistics” activities involved.
Most of us know that procurement, warehousing, and freight forwarding involved Logistics work. Thus, the awareness of what exactly these activities is less. And the concept goes beyond the frontline work.
The efficiency and effectiveness of activities are the results of good logistics practices. For example, imagine a warehouse operation. The operator can look into a list of items which should be taken out from the warehouse, and bring them out one by one. At the same time operator can list down the items which are far from the exit point to the closet to the exit. And start bringing items from the far location. Here the operator can bring a few items together reducing the number of movements inside the warehouse.
You all know that vehicles are moved around the world using RORO ships and containers are moved using container ships. What if the cargo loading to these vessels have not done in a manner, where 1st discharging is not at the front? All the containers or the vehicles blocking the actual discharging vehicle have to remove first. And discharge the actual dischargeable vehicle or container and then reload the discharged vehicles and containers. Or we can say without a proper stowage plan.
Look at this mess. This will consume a lot of time at ports to discharge and reload these vehicles and containers. And these activities are subject to charges at ports where the shipping line has to bear avoidable costs. Higher ship turnaround time at ports increase vessel bunch-ups. Sometimes ports have to invest in infrastructure to lower the port congestion. A longer time period at port means a longer lead time. It doesn’t stop there. A longer lead time requires more buffer stocks. If we go a little further, more stocks require larger warehouse spaces, and more cash to procure stocks.
If the vehicle or container loading has done in an optimized way this whole mess doesn’t pop up. The optimized way to plan these activities dressed as the so cold “Logistics”, which no one even notices sometimes.
Forget about the warehouse, apply logistics in reducing the number of movements while you are working.
Let’s say you wish to have your own business. It could be locally or internationally. You have to procure materials, do the production, and store and ship them to the client. If you have no idea on Logistics arrangements from the point of procuring to delivering cargo to the client what will happen?
Of course, there are third-party logistics service providers and you can advise them to make all arrangements on your behalf. Thus, if you know logistics, you have the power to negotiate for better rates, and cost-effective practices and to improve your company’s profit margins.
Imagine a small pastry shop at the corner of your street. They don’t bake or cook all the products they sell. Based on the resource availability and the cost involved, the shop itself cooks some items while some procure from another vendor. Though this is done for the benefit of the shop, this is the so called “Outsourcing” in Logistics.
The 7 Rs involved in Logistics speaks on the right product delivering at the right time in right quality in right quantity to the right place at the right price and to the right customer.
If you match 7 Rs, you will be benefited from Logistics without knowing that you are following Logistics practices.
Logistics Job Market
If we speak on the job market, Logistics is a well-paid sector. If you wish to work for a seaport, airport, warehousing, manufacturing plant, cargo distribution firm, shipping line, freight forwarding, NVOCC or even become an entrepreneur, this would be a great selection. To become a real Logistician, you should be ready to face challenges, strong enough to stand on your feet under pressure, make quick decisions balancing the cost and company’s interest and be aggressive to make sure that you meet 7Rs.
We have spoken on several occasions on how Logistics is being used. These are only a few examples for you to understand the prominence of the industry. With that, we hope you have gained a better understanding of the real reasons for learning logistics. If we simplify, yes, “logistics” is a strategy, it is business and it is management or engineering. It is complex if you dig in to deep. You don’t have to know everything. Thus, knowing the basics will help your career despite the job you do and your day to day work.
It offers vast job opportunities. If you are a glass ceiling breaker, Logistics will be the best choice for your carrier!
If you are still struggling to understand why you should learn Logistics, reach us without a second thought. We are happy to help
Good Luck Mate!