The Human Factor Needs to be Considered by Logistics Executives

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According to Shams Rahman, a RMIT University Professor of Supply Chain Management, logistics executives neglect the fact that the efficiency of a supply chain is dependent on how both the internal and external relationships are managed.

Professor Rahman will be spoke at the Chief Logistics Officer Summit 2013 held on the Gold Coast and reiterated to the attendees that both hiring and managing the right people is key to ensuring that every aspect of the supply chain process adds value.

In a post at http://www.supplychainreview.com.au/:

“CLOs (Chief Logistics Officers) are operating in a global supply chain context, with competition forcing them to implement best practices, create strategic alliances with partners and gain access to the best and latest technologies,” Professor Rahman says.

“They have to manage many different products and services, many partners in different locations globally and they have to be efficient and responsive to customer demands in order to be competitive.”

Rahman says CLOs need to recruit people who have the expertise to manage supply chain and logistics functions, such as inventory, transportation and warehousing.

“But they also need to understand how to build teams and be able to manage people through effective communication, perhaps in a multicultural environment,” he says.

Rahman adds keeping and managing talent is another challenge.

“CLOs need to give [staff] opportunities to progress in the organisation, to move up the ladder and take on tasks that are more challenging than what they currently deal with,” he says.

“Therefore, they must be given the right training at the right time.”

Rahman also aims to point out the business environment for supply chain managers is changing very rapidly.

“CLOs should look into business opportunities by addressing current as well as future challenges,” he says.

“One such challenge is the green or sustainability issue. This means that CLOs have to consider KPIs from the triple bottom line perspective.

“The organisation has to make money, while considering the natural environment, and societal issues.”

Addressing sustainability is not easy, however, Shams says there is no alternative.

“The win-win-win situation for the organisation, society and the environment can only be achieved through innovation and CLOs must prepare their supply chains accordingly.”

Source: http://www.supplychainreview.com.au/news/articleid/82696.aspx

People are the key to the success of any business, no matter how good your product without good workers at all levels your business may struggle to be anything more than mediocre.

Professor Rahman shares some very insightful thoughts about work culture and ensuring that the right people are in the right jobs. And training is essential to ensure that people are empowered with the skills to do the work that you require of them.

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