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Written by Adrian Preston

Why is logistics training so important to Supply Chains?

As an integral part of supply chain management, logistics plays an important role to keep the supply chain strong by planning, implementing, and controling the flow and storage of goods and services to meet customer’s requirements. Logistics management cannot be overlooked as it contributes to the success of operations and has a direct impact on the bottom line. When freight volume grows and transportation becomes more complicated, the need for logistics management rises. Thus, training in logistics management is rightly prioritized by organizations as optimizing this process can lead to increased profits. It is clear that logistics training is a fundamental factor to successfully manage any company’s operations. Key aspects of logistics include:

Production Logistics

This is all about streamlining and controlling the flow through the supply chain from point of entry to the end, which is termed ‘distribution logistics’. Production logistics activities are related to organizational concepts, layout planning, production planning and control.

Distribution Logistics

Distribution logistics concerns the delivery of finished products to the customer. Normally, it consists of order processing, warehousing, and transportation. Major sub-sectors within the industry include air, rail, water, and truck transportation, urban transit and ground passenger transportation, warehousing and storage, and motor vehicle repair. Logistics involve the integration of these sub sectors, including information, transportation, inventory, warehousing, material-handling and packaging.

Disposal Logistics

Also known as reverse logistics, it stands for all operations related to the re-use of products and materials. The main purpose of this field is to reduce logistics cost, enhance service, and save natural resources.

With efficient logistics training, organizations will certainly benefit by meeting customer demand and providing a superior service on time. It’s important for shippers to provide rapid, precise, and quality service to satisfy customer demands and only a good logistics management can help you secure this. There are multiple benefits to acquiring the right skills and knowledge which underlines the importance of good logistics training, including:

Maintaining competitive edge

It’s certain that logistics helps organizations to take the products to the customer fast and allows you to have a competitive edge over your competitors. The process enables you to fulfil the customer needs in a more efficient manner.

Building good consumer relations

A well-executed logistics program leads to strong customer relations and loyalty. It helps to deliver your products to customers in a proficient manner allowing you to build good consumer relations. Not only does it bring immediate monetary gain but also reinforces strong customer relationships and aids long-term business.

Creating finished product

Another function of logistics is not only to take products to customers but also brings the raw materials needed for the manufacturing process. To ensure a regular and orderly output, it’s important to have enough raw materials available to manufacture the products. Besides, having enough products stocked is also necessary to make sure that you have enough supply to anticipate unexpected demands and to maximize customer satisfaction.

Providing organization

Proper logistics management ensures that your inventory is tracked, transported, stored, and manufactured in a way that accommodates all an organization’s departments.

Good visibility

Logistics management creates visibility into a company’s supply chain. For instance, advanced transportation management systems (TMS) analyze historical data and track real-time movement of goods into and out of a business. Thus, logistics managers can use this information for process optimization and avoiding potential disruptions.

So how can organizations train employees for effective logistics management?

An effective training and development program can greatly improve logistics management within an organization. Relevant skills and knowledge are critical to run logistics efficiently and logistics training programs usually cover subjects such as management, managerial decision-making, distribution and logistics and supply chain management.

No matter the size of a business, logistics efficiency can significantly affect the supply chain. Supply chain professionals need to have the necessary skills and knowledge to run the supply chain smoothly. Therefore, businesses need to invest in proper logistics training and development as it can directly affect the bottom-line.

A supply chain leader with 30 years experience of working in and managing the supply chains of the world's biggest companies from the automotive, medical, aerospace, construction and agricultural machinery sectors.

Adrian Preston