Training and education will make a paradigm shift for efficient logistics services

• SLFFA supports a national agenda for training through National Export Strategy

A way forward

Training can be very simply defined as an important opportunity for employees to grow their knowledge base and improve their job skills to become more effective in the workplace, making the business more profitable and manageable. Despite the cost of training for employees, the return on investment is immense if it is consistent, as it enables them to sharpen existing skills, acquire new skills, perform better with increased productivity, and develop into better leaders with competence. A successful or unsuccessful company is the sum of what employees achieve individually. Therefore, organisations should do everything in their power to ensure that employees perform at their peak with knowledge.

Challenging times need new thinking

The year 2020 has brought the global industry to a point where it must rethink strategy and direction to survive a new world order for both trade and services. The traditional logistics company is not going to be competitive, and will require to change the way in which it operates and facilitates international and domestic cargo movements, as the markets all around are changing behavioural patterns. May it be the consumer, the retailer or the manufacturer, they will all look into new solutions in the post-COVID international economy.

Various theories are emerging. Shifts in markets, off-shoring vs. near-shoring, large scale retailing vs. expanding e-commerce, digital platforms are among the theories proposed by experts who say will reshape the world’s trading patterns. However, logistics will be a key component irrespective of the market model, and the evolution of the logistics industry will also be driven by technological advances.

To face this situation along with the 4th industrial revolution accelerated by COVID-19, the logistics industry’s success will be in training development of human resources. Technology alone will not be sufficient to compete in international platforms. Knowing how to operate the emerging technologies by service providers will be the catalyst for the competitive advantage.

The Sri Lanka Logistics and Freight Forwarders’ Association (SLFFA) is of the view that the time is right through lessons learnt through COVID-19, that training and education has to be a serious role of a logistics company to survive the coming decades. SLFFA has taken a position that all its member companies allocate resources and budgets to their staff into the digital world and train them on multitude of disciplines in international trade and transportation. Investing on human resources will, increase customer satisfaction and help companies improve the top line and the bottom line in a volatile global economy. 

Why is logistics training so important to sustain competitive supply chains?

Logistics is an integral part of the global supply chains that facilitates the movement of global trade. Irrespective of mode of transport, logisticians plan, implement, and control the flow and storage of goods and services to meet customers’ requirements.

As a result, logistics management cannot be overlooked as it contributes greatly to the success of export-import companies’ operations, has a direct impact on its bottom line, and is a modern-day competitive tool in international trade. During times when freight volume moves up and down in a faster pace, transportation becomes more complicated, and the need for managing logistics efficiently arises. Thus, training in logistics management is highly felt by organisations nowadays due to the evolving global situation with COVID-19. Employees with more training can lead to increased profits and efficiency. It is clear that logistics training is a fundamental factor to successfully manage any company’s operations.

Logistics can be defined into three categories as identified by expert groups:

Production Logistics – all about streamlining and controlling the flow through the supply chain from point of entry to the end, which is distribution logistics. Production logistics activities are related to organisational concepts, layout planning, production planning, and control.

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 – This is also known as reverse logistics, and 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.

Clear reasons for investment in logistics training in the above areas include maintaining a competitive edge, building good consumer relations and trust, helping develop new markets and market access to clients, and increasing volumes of trade.

Such training can help improve a company’s overall logistics and therefore lead to smooth and efficient operations both within and the external environment. Appropriate logistics management also results into increased revenue, better cash flow, improved customer service and brings a good reputation to a company’s brand and generate more business. Better trained logisticians create better supply chain visibility and create new opportunities for major cost savings in operations too. Logistics management training will give a company control over inbound freight, keep inventory at optimal levels, organise the reverse flow of goods, and utilise freight moves on the proper transportation modes – all of which can cut costs significantly.

The service user’s role in selecting a modern logistics service provider

The service users such as shippers involved in compliance-related international trade that work with logistics companies also must take a new approach when partnering logistics companies for bid management. This includes when bids are called for freight proposals. They must give a weighted average score to areas such as the environment contribution (carbon footprint), CSR projects, and capacity development initiatives of the staff to be included in the selection process of a logistics and a freight forwarding company.

SLFFA takes a new direction in capacity building 

No matter the size of a business, the competence of logistics knowledge can significantly affect the supply chain and the profitability. It requires professional management and constant capacity building in supply chain professionals to have the necessary skills and knowledge to run the supply chain smoothly. Therefore, businesses need to invest in proper training and development. The SLFFA as a body in addition to its own training has now joined the Export Development Board (EDB) through its National Exports Strategy (NES) to develop and support the capacity-building projects of the industry, as well as working with EDB to include a curriculum on logistics to the national education system, to develop new avenues of employment to the school leavers.

Note: Research from the internet has been taken in compiling this article