Global supply chains are constantly becoming more complex as multinationals (MNCs) expand their reach to newer nations. Companies are determined to optimize their supply chain networks in their determination to lower product prices and enhance quality so that they can gain a unique advantage in the current hypercompetitive business environment. Organizations hire supply chain managers to assist in the storage, transportation, delivery, and optimization of supply chain networks in line with the organizational goals and objectives ( Christopher, 2016). In this essay, the focus will be on the job description of the supply chain managers, its importance in firms, the rank in the job market, the number employed in the market, the average salary, and the future of the business.
Job Description of a Logistics Manager
Logistics managers negotiate and agree on third-party contracts with suppliers, consumers, and distributors relevant to the effective performance of the supply chain. They also coordinate and schedule shipments to all locations, both local and international. Logistics managers are required to handle all complaints regarding delays, lost items, and damages ( Kramberger, Potocan & Ipavec, 2016). They study the market, determine and expand to new routes that could be beneficial to the profitability of the organization. The managers conduct budgets, expenditures, and operation reviews and analysis to ascertain if the supply chain objectives are being attained. The logistics team works under the logistics manager, so the latter ensures that the team operates in line with the expectations. Therefore, the person in that position strives to portray leadership skills to mentor the skills and abilities of the subordinates (Prospects, 2018).
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Logistics managers design and document the key performance indicators and the standard operating procedures for the organization. All operations should be conducted in line with the set frameworks to attain the company’s financial goals; it may include routing, shipping, and changes that are beneficial to the organization. They also develop new and effective strategies and initiatives, which are then incorporated into other departments within the organization with a common goal of cost reduction, value enhancement, and profitability. They also employ IT systems to track shipments, monitor inventory levels, and order raw materials or goods from suppliers (Prospects, 2018). Companies prefer to hire business, supply chain, economics, or logistics graduates with specific years of experience to work in the position of a logistics manager. In some situations, a master’s degree may be a requirement (Prospects, 2018).
The Importance of Logistics Managers in Organizations
The contemporary customers have become too demanding. They want to pay low prices for high-quality goods ( Kramberger, Potocan & Ipavec, 2016). This creates competition since whereas firms need to enhance profitability and lower production costs; they also need to attract more consumers in their determination to improve the market share. Logistics managers come into play to optimize the supply chain so that the demands of the customer as well as the goals of the organization can be met effectively. They create visibility into an organization’s supply chain to lower operational costs, develop strategies to minimize potential supply chain disruptions, and augment the supply chain to make it move more efficiently. The manager also acts as a link between the organization and the customers in a manner that benefits the two entities. It, therefore, crafts a good reputation for the firm ( Plunkett, 2008).
The Rank of Logistics Managers in the Job Market
Over the years, global supply chains have become increasingly complex and intricate. Firms are faced with delayed shipments, payments, as well as human errors on documentation, which negatively affect the modes of operation. Currently, some global firms are engaging local suppliers to assist in the distribution of their products to the end user. This implies that firms need skilled professionals to assist in the optimization of supply chains, lower operational costs, enhance profitability, and improve customer relationships ( Kramberger, Potocan & Ipavec, 2016). For these reasons, the Bureau of Labor Statistics (2017) affirms that employment is expected to grow at 7% from 2016 to 2026, which is on par with other professions. The sector is lucrative because of the demand for their skills in the global economy. The US News ranks it #19 on the Best Business Jobs
Percentage of Logistics Managers Employed in the Market (Male and Female)
The transport and logistics sector is taking in a key role in the recovery of the economy. This growth is largely attributed to the increase in the size of the e-commerce market. Companies are currently transacting online hence the need to attend to the large number of buyer requests in a timely and efficient manner (Fairchild, 2014). Despite the growth of the logistics sector, the gap between women and men is significant. According to the Bureau of Labor Statistics. (2017), women make up 46.8% of the United States workforce. However, out of the approximately 7.5 million workers in the transport sector, only 22.6% are female. Fairchild (2014) supports this issue by affirming that men hold approximately 70%-80% of the supply chain jobs. Further, 95% of the men hold senior positions in the same sector. While 37% of women are undertaking university courses in supply chain and logistics, only 5% fill the top positions in the Fortune 500 companies. Thus, women are fewer in the logistics sector.
The Average Salary of a Logistics Manager
According to Glassdoor, the average salary of a logistics manager is $73,354/year. On the other hand, Salary.com indicates that the amount a manager earns is dependent on the education, certifications, skills, years of experience. Thus, they can earn between $96,000 and $120,000 per year. Indeed indicates that the average salary is $60,177/year while PayScale reports $63,683. The Bureau of Labor Statistics (2017), the Median of a Logistician is $74,590/year. The surveys conducted by Glassdoor, Indeed, and PayScale combined with the Bureau of Labor Statistics indicate that on average, a logistics manager can earn between $60,000 and $75,000 per year.
The Future of the Position of a Logistics Manager in Organizations
As aforementioned, the demand for effective and efficient distribution systems is on the rise since companies are going global. Organizations need competent individuals who will be in a position to handle the complexities associated with the international supply chain systems. On the other hand, the Bureau of Labor Statistics (2017) has projected growth in the sector. Therefore, the need for growth creates space for increasing demand for professionals to handle the complexities associated with international business. This implies that logistics managers will be on high demand in the future because their skills are desired on a global scale. Their task will be to ensure that MNCs operate with minimal disruptions to achieve the desired objectives.
References
Christopher, M. (2016). Logistics & supply chain management . Harlow, England New York: Pearson Education.
Fairchild, C. (2014, August 20). Want more women in the C-suite? Start with the supply chain. Fortune. Retrieved from http://fortune.com/2014/08/20/want-more-women-in-the-c-suite-start-with-the-supply-chain/
Kramberger, T., Potocan, V. & Ipavec, V. (2016). Sustainable logistics and strategic transportation planning . Hershey, PA: Business Science Reference, an imprint of IGI Global.
Plunkett, J. (2008). Plunkett's Transportation, Supply Chain & Logistics Industry Almanac 2008 The Only Comprehensive Guide To The Business Of Transportation, Supply Chain, and Logistics Management . City: Plunkett Research Ltd.
Prospects. (2018). Logistics and Distribution Manager . References https://www.prospects.ac.uk/job-profiles/logistics-and-distribution-manager
The Bureau of Labor Statistics. (2017). Occupational Outlook Handbook: Logisticians. United States Department of Labor. Retrieved from https://www.bls.gov/ooh/business-and-financial/logisticians.htm
