The logistics manager is one of the key positions in any organization. This is particularly true of the pandemic period in which the supply chains are unstable. If you cannot get cargo to your customers then there is a likelihood that competitors will take over your market positioning. The benefits of employing a competent logistics manager can be felt throughout the operations of the company and will significantly impact the bottom line. However, a failure by the logistics manager could destroy the entire supply chain on an incremental basis.
The role of the logistics manager in the supply chain
One must understand the intricacies of the supply chain in order to fully grasp the importance of the logistics manager. An effective logistics manager should comprehend the ways in which raw materials are turned into finished products from the point of view of transportation. The manager must have healthy professional relationships with the key players in the supply chain in order to track all of the moving pieces and deal with problems that arise along the way. The supply chain is one of the most vulnerable and decisive aspects of operations. Here are some of the reasons why you should always value your logistics manager.
1. They ensure that products are available to buyers
If you have no products on the market, then you also do not have a functional company. Inventory is necessary and is the lifeblood of operations so that you can accept orders from customers. Profitability directly comes from selling merchandise at a profit. This is one of the most elementary functions of the organization and the logistics manager ensures that it happens. One way of looking at this role is that it keeps the business alive. This is particularly true during this time when the logistic supply chain is not as dependable or as responsive as it once was.
2. They help to control the margin of profit that the company makes
Although it may not be obvious to everyone, the work of the logistics manager has a role to play in the level of profitability that the company can enjoy. They can help to reduce unnecessary costs associated with poor supply chains which increases the profit mark-up. They may find ways of managing import duties so that the organization does not pay unnecessary fees and fines through negligence. The cost of freight is an important determinant of both marginal and overall profits. For a role that is effectively a fixed or semi-variable cost, this can be an efficient way to increase profitability when dealing with high volumes of cargo. The logistics manager is the person that makes the right decisions at the right time to control costs and therefore improve profitability.
3. They are responsible for reigning in operational expenses
A poor logistics outfit is bound to be reflected in increasing operational costs. Hence, the person that is employed in the role of the logistics can be a key tool in managing these costs. We are living in times when operational expenses are expected to rise. The operational manager is responsible for costs and filings as well as the administrative work that is necessary to get the right routes. They hunt for the best deals so that the organization does not have to jostle for position within a competitive market. In any case, keeping good control over operational expenses is a good indicator of a company that is bound to survive over the long run.
4. They help the company to achieve a global outlook and presence
If you want to go global, it is imperative that you hire a good logistics manager. International trade offers opportunities that are not available on the domestic market. International business would not be possible without the support of a good logistics manager. This is particularly true if there are ongoing free trade agreements such as the ones that exist between the USA, Mexico, Colombia, Canada, and the European Union. The logistics manager will be aware of special duty regimes that can be accessed subject to stringent stipulations. Using a logistics manager also reduces the financial cost of having to take your business abroad.
5. They are the route towards reverse logistics
There is a sizable portion of buyers that make purchases without seeing the product. The online market is exploding in the wake of the Covid-19 pandemic. As consumers try to remain socially distanced, the roles of logistics managers will become increasingly critical. Many consumers make purchasing decisions based on warranties and guarantees that are provided, in part, through the work of the logistics managers. This applies regardless of whether the client is an individual or a business. As the logistics manager acquires a reputation for reliability, the reputation of the company will similarly grow. There have been many missed orders during the pandemic due to staff shortages and logistical challenges. The best logistics managers are upping their game and dominating the sector despite challenges.
6. They allow for company collaborations
The logistics manager plays an important liaison role that goes beyond interdepartmental communication and includes cross-organizational engagement. Some of the roles that will intersect with the logistics manager include customer sales, accounting, order management, shipping, and administration. All these form a network of collaborative relationships that will benefit the organization overall. That is why the role requires someone with strong people skills. Logistics managers are well-rounded people that can benefit the organization in a myriad of ways.
7. They enhance customer care
Perhaps one of the most important roles of the logistics manager is customer care. It is not just about selling standard FOB but also ensuring that the customer receives their order on time and intact. A logistics manager should take the hassle out of shipping. You can have a significant competitive advantage over your rivals in the sector if you are known for excellent customer care based on the practices of your logistics manager.
A logistics manager is an essential role for any organization that is grappling with high demand in the midst of the Covid-19 pandemic. These professionals will take on many roles professionally; bringing a range of competencies as negotiators, organizers, and decision-makers. A logistics manager will help to improve your operations, your profits, and your relationships with your customers.