Ideal of logistics and supply chain management
MANAGING the logistics industry has been a fairly neglected area of business activity in Malaysia. In the past, companies are not aware of the advantage of having an effective distribution system and thus have not given sufficient priority to the development of effective distribution strategies. Despite the remarkable expansion of the industry, there has been very little training, let alone mentoring carries out in the area of logistics and supply chain for the purpose of qualitative improvement thereafter career development for the human capital.
It is an accepted fact that the issues and problems in relation to operational logistics, service response logistics, and information flow, and policy-related issues are the main hindrances that interfere for logistics effectiveness in Malaysia. But of late, rather than being viewed as a supportive industry to other functional areas previously, logistics and supply chain management have now been regarded as a strategic industry on its own.
Logistics is the backbone of which supply chains are driven while supply chain management (SCM) encompasses, planning, design, control, and implementation of all business processes related to procurement, manufacturing. It also plays important role in post procurement function of delivery of raw material from the supplier to the point of production and Finished Goods.
SCM, on the other hand, is conceptualized as a network of companies ranging from suppliers to end-users. These companies have the intention of integrating supply/demand via coordinated company efforts. SCM is known as encompasses the planning and management of all activities involved in sourcing and procurement, conversion and all logistics management activities. Importantly, it also includes coordination and collaboration with channel partners, which can be suppliers, intermediaries, third-party service providers, and customers. In essence, SCM integrates supply and demand management within and across companies throughout its development.
The career as a logistics and supply chain manager involves transportation, stock control, warehousing and monitoring the flow of goods. The daily responsibilities include collaborating with other departments to integrate logistics with business systems or processes. The use of IT systems is a must to manage stock levels, delivery times and transport costs; and maintain reports, customers’ orders, process documentation, and other records.
In addition, manager may also need to develop new strategies that can improve business performance within the constraints of legislation, fuel costs and rising environmental pressures. It is therefore vital for logistics Manager to thoroughly understand the management of the flow of goods and supplies involving information, data, and documentation between two entities or points.
Undoubtedly it is a vital business model known as to control the flow and storage of goods into and out of a business and at the same time responsible for satisfying customer demands. Needless to say it is important for creating visibility into a company’s supply chain which is an important part of a company’s operations that takes care of all the processes involved in producing and delivering products. In view of the fact that the world is one big supply chain: society and economy cannot function without supply chain.
In a majority of businesses, supply chain represents the single largest expense behind labour; accounting for between thirty to forty percent of an organization’s overall cost structure. It is involved with integrating three key flows across the boundaries of the company in a supply chainproduct/materials, information and financial/cash.
Successful integration or coordination of these three flows has produced improved efficiency and effectiveness for companies. The key factors of successful SCM include inventory, cost, information, customer service and collaboration relationship focusing on the management of these factors is critical to the implementation of a supply chain strategy
Having said about the ideal of SCM, one may realize that logistics and supply chain management in Malaysia are an area that has traditionally been loosely managed. The environment is providing significant opportunity for professionals with strong knowledge of supply chain principles and practices to bring about discipline and progressive thinking that can be the difference between a company surviving or ceasing to exist in today’s highly competitive markets. Obviously these businesses are constantly under intense pressures to transform for better result.
Logistics and supply chain are the backbone of ecommerce industry. Increasing emergence of e-commerce or online business has increased the working of supply chain. supply chain firms are providing a great career opportunity, especially to the youngsters. They can brush up their skills and enhance their knowledge by engaging with this field.
From the career perspective, logistics and supply chain is a great platform.