Four Trends That Will Impact Your Logistics Job in 2008

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In the coming months, there are going to be four trends that will impact the job of every logistics professional. These include changes in the reliance on effective supply-chain management, the consolidation of business functions, the importance of corporate flexibility, and the ability to outsource successfully.

Yes, we love our cell phones, our iPod’s, and our laptops. They have changed the way we do many of our daily tasks and have even made them more enjoyable. But these technological innovations are changing more than our everyday lives; they are starting to change our jobs and the industries in which we work. Logistics in particular, which, according to a web definition, is ''the total process of moving goods from a manufacturer to a customer in the most timely and cost-efficient manner possible,'' relies heavily on technology to ensure that business operations run smoothly. Thus, the logistics industry will continue to evolve in the coming months and years as technology shapes the field.

Below is a list of the trends that will impact your logistics job in 2008.



1. More importance will be placed on supply chain management. To offset increasing costs and to enhance the efficiency of operations, there will be continued emphasis on the supply chain. More and more companies will need to forecast consumer trends and implement new technologies to ensure that they maintain just-in-time inventories. It will become increasingly important for companies to be aware of inventory levels at every point in the process, which will be accomplished by investing in software that ensures real-time communication and data-sharing between departments.

Additionally, more emphasis will be placed on a company’s ability to develop processes that bypass department lines. Growing importance will be placed on supply chains that can incorporate raw materials, production, and shipping into one smooth process. If this is accomplished, a company will save a significant amount of money and time.

2. Companies will look to merge with or acquire new businesses. As corporations look to cut costs and increase the efficiency of operations, they will be more interested in and willing to acquire competing organizations or merge with them. Moreover, the fact that consumers require better overall service and would prefer to interact with a single company as opposed to many is also contributing to this trend. Additionally, as a result of these mergers and acquisitions, logistics professionals will need to adapt to the styles and procedures of another company or help other logistics professionals become comfortable with the style and procedures of theirs. Ultimately, this means that technology will play a vital role as the operations of one or more organizations must be successfully and flawlessly melded together.

3. The importance of corporate flexibility increases. To compete effectively in the new marketplace, companies will need to become more agile. This can only be accomplished by decreasing maintenance costs and through the continued use of technology. It is important to note, though, that the use of technology alone isn’t enough. It is vital that the technology that is used positively impacts or enhances a corporate function — for instance, the manufacturing processes of the company. The point of using such technologies is to ensure that every business process is so efficient that the company can adapt to consumer trends and tastes as quickly as possible without any complications. Doing so will inevitably enable the company to provide products to consumers before competitors can.

4. Increased outsourcing. The issue of cost is also the primary reason for this trend. As the costs of maintenance for companies continues to increase, companies will attempt to find new ways to control them. One of the primary ways this is accomplished is through outsourcing. Often, companies outsource operations because it not only costs less than keeping operations in their own country, but the company is able to obtain a similar level of quality and customer service. Thus, more sophisticated jobs will be left as ''lower level'' jobs are sent abroad.

Ultimately, the biggest trend overall in the logistics industry in the coming months and years is the reliance on technology to complete and enhance business functions. Logistics professionals must ensure that they are not only aware of this technology but develop an understanding of how and why it is used, because that knowledge will be a vital tool used to ensure that they flourish in their jobs.
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 logistics industry  functions  managers  operations  consumers  procedures  industry  manufacturing  trends


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