Image by Randy Cox via Flickr
Any business major student will tell you that part of their courses is to create a fictional widget company. This is used to plan out the model of what a successful business operation should look like.
This is where they learn first hand all the benefits of applying logistics management to any industry or company. Can you be taught the proper forms of logistic management? Absolutely. The bigger question is will you be putting logistic management methods to work for your own company?
In the student widget factory, they have to determine all the aspects of manufacturing from bringing in the raw materials, to the assembly of the widget to the staffing. Should they have their factory close to the raw materials or should it be close to an affordable work staff? Will the company use fulfillment services or handle all order processing and shipping in house? These are important questions to consider because each one comes with its own sets of pros and cons that can have a large impact on your profitability.
After the widget factory is up and running, you need to apply logistics management to shipping and fulfillment. It could be that you are just making the widget for someone else. But if your widget is part of your company’s business plan, then you need to coordinate getting that widget shipped out to distribution centers and ultimately into a customer’s possession.
Think you can get an “A” by coming up with solutions to those scenarios? You’re not even halfway there! Logistics management comes into play when planning out an operating budget. That will have to take into account rising energy costs, factory maintenance, technological upgrades and of course employee support. That support can come in the form of something as complicated as a health care plan to something simple like providing a lunch wagon for breaks. Sure you can eliminate those two items but it might mean having workers go else where for a job or taking longer on breaks as they wander off for food. Are you seeing how logistics management can help?
Logistics management also applies to the inventory management personnel itself. Every department needs a supervisor. Those supervisors have to coordinate their efforts with upper management. Along the way there are administrative support staff that is needed to provide the necessary information to management to insure that the job is getting done. Who knew that making a widget would be so intensive? It doesn’t have to be when you have logistic management on your side.