Managing Logistics Internationally
As the global marketplace continues to expand, efficient management of resources and strategic alliances become essential for maintaining a competitive edge. With the tendency toward internationalism comes the growth of factories and centralized inventories. Managers juggling the complex logistics to support company growth know that the landscape is constantly evolving. Organizing for international logistics with an attention to special areas such as layering and tiering, the evolving role of individual plants, and multiple freight modes are just three areas of special importance when developing logistic strategies to maximize company profits.
Yet, each of these areas comes with its own overlapping set of challenges including extended lead times, unreliable transit times, multiple freight modes, cost options, multiple consolidation and break even points, once global expansions are factored into the equation. Never before has it been more important to have highly skilled and certified logistic managers with best practice knowledge from accredited programs in place who can align logistics to strong ROI. Consider streamlining your international logistic challenges and bridging the gap between current competencies and those essential to future success by taking another look at these three key areas.
1. Targeting and Tiering
Instead of applying a standardized supply chain service across all segments of your business, match the supply chain service with each segment's requirements. Current best practice theory states that supply chains compete, not companies. Therefore as international factors intensify competition at all levels, targeting and tiering improves supply chain cost, versatility, and creates a greater profit. Aside from the necessary skills to build an overlapping and versatile supply chain, today’s most effective managers also need a keen set of people skills to manage the human factor of international supply chains. Governmental instability, worker strikes, national holidays, severe weather, transportation inconsistencies, and a myriad of other unpredictable factors are only exacerbated in an international setting.
Understanding both the complex landscape of the forest through the trees and the trees in the forest is a vital skill of 21st century logistics managers. Even a decade ago, managing supply chains did not involve the intense attention to multi-national details of regulation, administrative versatility, and creative problem-solving skills that it does today. Executives who recognize this change and put highly skilled logistics coordinators in place are making a savvy investment. Today’s certified supply chain managers who have graduated from nationally ranked and fully accredited programs bring current best practice skills to the job. But the secret that wise hiring executives know is that certified supply chain managers also bring with them the networking potential and problem-solving power of their professional organizations, as well as their alma mater mentors. When the chips are on the table and logistics get tough, a well-connected supply chain manager is worth his or her weight in gold.
2. Evolving Role of Individual Plants
Current industry studies show that “people, process, and technology” are the three key components of today’s successful supply chain managers. Tiering and targeting is one place where the people skills of a good manager shine. Managing relationships with various plants and learning all the logistics of labor agreements, transportation, environmental implications, and community development arrangements is a complex process. Skilled logistics managers not only work toward streamlining efficiencies such as packaging in bulk instead of individually, but also need to be aware of legal, tax, and regulatory requirements as they relate to local packaging, and labeling. These details also overlap with language requirements, document preparation, customs clearance, and many other third party considerations. With growing consumer emphasis on global products that are consistent from country to country, the role of individual plants becomes a complex network of physical, administrative, and net-working challenges carefully orchestrated by successful logistics managers. Executives who watch trends will notice that companies who are meeting global marketplace challenges are actively investing in certified supply chain managers with the logistics skills to reach or exceed ROI.
3. Reconfiguring Processes
Reconfiguring processes to support company growth goals in a global marketplace is as much about the personnel you chose as it is about the actual technology you use to support your goals. With the international challenges of transportation, consolidation, and cost supply chain managers need to have the creative and critical problem solving skills to assess vulnerabilities in the supply chains and reconfigure the processes quickly with little or no disruption to the overall supply chain process. Highly sought after logistics managers work with IT managers in a synergistic relationship with the people who run various aspects of the supply chain can help integrate the entire system and align the process with long-term company goals. Spending the time to analyze what is working and to implement necessary changes requires not only budgetary commitment, but also personnel selection that can drive the momentum of stream-lining and reconfiguring supply chain processes.
Conclusion
Over the last decade, the complexity of a logistics manager’s job description has grown exponentially. With the dawn and evolution of truly international supply chains and a multinational workforce, supply chain managers must have a strong best practice skill set to reach company profit goals. Executives who recognize the need for a highly specialized supply chain management team and invest in competent, certified, and creative international logistics specialists will realize a higher ROI. As competition from other supply chains continue to increase and the companies who invest in excellent supply chain managers enjoy a larger piece of the pie, the demand for certified supply chain managers will increase as a highly prized and essential component of today’s profitable international business survival and expansion plan.
The University of San Francisco provides all the tools and resources necessary to gain a supply chain management certificate, and a sustainable supply chain management certificate online. For further information please visit the supply chain management certificate section.
