Logistics: What Does a New Business Owner Need to Know?
We’ve all heard about and used marketing and e-commerce platforms, and a large number of us have already become dependent on purchasing most of our needs from these platforms. You might ask yourself how the goods reach me? How can I seamlessly keep track of packages from foreign countries? How can e-commerce sites keep all the relevant products in their warehouses without an insane cost-overrun?
The answer is simple- shipping and transportation are the processes responsible for all of this. Virtually all companies in the world rely on shipping, transportation, import, and export. It is for this reason that logistics has been taking an increasingly important role in the business world.
Logistics is responsible for these operations. It is concerned with the art and management of resources, broadly, and this encompasses a wide range of operations.
This includes contacting steel pallet manufacturers and buying tools and items necessary for proper storage to the flow of goods, energy, information, products, and services from the production area until reaching the consumption area. That’s why, as a business owner, you need to make sure you’re familiarizing yourself with the art and science of logistics, what encompasses it, and how to use the knowledge effectively in your own business operations.
Who is Most Qualified to Run Logistics in Your Company?
If you want to learn what logistics entails and how to best go about it, it is a good idea to learn about the characteristics and qualifications of the person ideal for it – this will help you in two ways: if you want to get better in logistics, you should use these as a blueprint to improve yourself, and if you want to hire an employee to handle the work for you, well, now you know what exactly to look for.
Although recently, more universities are providing courses and degrees specifically related to logistics and warehouse management, it isn’t a strict requirement. If a person can make up for it through experience and dedication, they still might be a good choice.
Personal Traits Desirable in Logistic Management
- Time Management
- sense of responsibility
- Quick on their feet
- good physical health
- Very high organizational skills
- The propensity to record and take notes
- Proficiency in languages
- Highly skilled ineffective communication
- High technical and practical skills in using computer software such as merchandise tracking software, etc.
Practical Skills Desirable for Logistic Management
- Customer service skills – ability to handle and calm customers.
- Negotiation skills
- Knowledge of products stored and shipped – necessary if you want to create the right warehouse environment.
- Presentation skills – necessary to inform stakeholders in the business of the progress and the efficiency of the logistics operation.
- Leadership and management skills
- Good written and oral language skills
- Ability to draw and execute long-term strategic plans.
- A cursory familiarity with STEM
- Administrative competence as the majority of logistics rely heavily on administrative processes
What Can You Gleam from Effective Logistics Management
Logistics wouldn’t be such a focal point for businesses if there weren’t any concrete advantage to be gotten from studying and using its principles. Here’s a non-exhaustive list of advantages you should expect seeing when you use logistics best practices to handle your inventory:
- Reduced inventory costs.
- Reduced shipping times and increased competitiveness on the market thanks to it.
- The ability to get more done with fewer employees.
- Accurate picture of the company and the warehouse due to the detailed tracking and data management.