Logistics executives overlook human factor

Executives continue to overlook the fact that supply chain efficiency rests on managing networks of relationships, RMIT professor says

Logistics executives overlook human factor
Logistics executives overlook human factor

By Anna Game-Lopata | February 15, 2013

Executives continue to overlook the fact that supply chain efficiency rests on managing networks of relationships both internally and externally RMIT University Professor of Supply Chain Management Shams Rahman (pictured) says.

Professor Rahman will tell the Chief Logistics Officer Summit 2013 on the Gold Coast the key making sure all complex supply chain processes add value, is hiring and managing the right talent.

At the marcus evans summit, which starts this weekend, Rahman
will argue skilled and competent human resources are critical to manage severe competitive pressures of recent years, but many Chief Logistics Officers (CLOs) overlook this fact.

"CLOs 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."

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."

The Chief Logistics Officers Forum will be held February 17- 9 at the RACV Royal Pines Resort, Gold Coast, Queensland.

More information: Summits-APAC@marcusevanskl.com

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