How Much Does a Logistics Manager Earn Yearly?
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A logistics manager directs the flow of goods, such as raw material and manufactured products, from one location to another and ensures process efficiency and delivery of goods in a timely manner. To run processes smoothly and ensure that there are no delays or disruptions, a logistics manager oversees and coordinates the storage, distribution and transportation of goods from the manufacturing facility to the warehouse and then to the final destination.
Logistics mangers are the main people in charge of supervising procurement as well as distribution of goods in a supply chain. They play a vital role in making sure that materials reach their destination according to their place in the supply chain, and products reach customers successfully.
Though the job duties of a logistics manager may vary slightly from organization to organization, the basic professional responsibilities that all of them must fulfill include:
One of the key responsibilities of a logistics manager is to control and manage the flow of both incoming raw materials and outgoing finished goods. In order to ensure this, they strategically create plans and delivery schedules, and look for ways to optimize distribution channels.
When it comes to logistics movement and management, cost and budgeting are important aspects that logistics managers are expected to control. To minimize expenses and maximize profit margins, they leverage on their liaising and negotiation skills to create valuable and profitable working partnerships with suppliers, carriers, retailers, as well as manufacturers.
Logistics managers are also expected to maintain all manner of reports related to the incoming, storage and outgoing of goods. They must track stock levels, inventory, delivery times, and transport costs & efficiency.
When issues with inventory and stock levels arise, logistics managers quickly go through the records to tally and identify where the problem might lie. They also play an important role in helping an organization maintain and audit its accounts with respect to inventory. Managers are expected to spend a great deal of their time in maintaining precise documentation and keeping organized records.
Most companies expect their logistics managers to develop business and add to their bottom-line. And logistics managers often do this by using data from their IT systems to track and evaluate performance and quality to plan for new business improvements. They venture into new partnerships, develop new supply strategies, recommend best shipping methods and plan vehicle routes that can add more value to the organization’s supply chain processes and maximize returns.
For enhanced productivity, improved performance and efficiency, logistics managers must also invest their time in coaching and training the warehouse workforce. This is usually done through workshops, or on the job training. A necessary component of this training is to address existing and potential safety hazards on premises; and make sure that the workforce complies with industry health and safety standards.
Loss of productivity at workplace is mostly associated to workers getting injured or sick. This happens either because the safety rules are not in place, or because workers don’t follow them strictly.
A logistics manager is expected to put down and maintain safety procedures as well as ensure that they are being followed by the staff.
The role of a logistics manager in the company is without a doubt crucial since their work has a direct impact on the company’s financial bottom-line. A logistics manager ensures that goods arrive at the depot on a timely basis, are stored and dispatched correctly and delivered to customers on time.
The time-to-market that includes ensuring that the products get on the truck and reach the customers in a timely manner is vital to success, and that is why companies rely on logistics manager. Besides this, they also help in curtailing operational costs which add to the company’s profit margins.
Typically, the work week for a logistics manager would be Monday to Friday with standard working hours. However, when production demand is high, they may be required to work evenings or on weekends. The average work week for a logistics manager is 60 hours long, which means they work 60 hours per week. Logistics managers generally work in indoor office settings, but they are also required to supervise production and distribution operations. While logistics managers typically work in an office setting, the work environment for them can range from the office to the warehouse and shop floor.
A typical work day for a logistics manager involves resolving problems concerning transportation, logistics systems, imports and exports, customer issues and supervising the work of logistics specialists, planners, or schedulers. For some people, this can be stressful, so it is crucial to ensure that you have the mental and physical capacity to survive and perform in a typical work environment of a logistics manager.
To pursue a career as a logistics manager, you must have an associates or bachelor’s degree in logistics, or supply chain management (SCM). The coursework in such degree programs teach the key concepts, processes and strategies of logistics, SCM and transportation. These concepts are much needed to understand how to manage the complexities of supply chain and logistics.
Courses in logistics degree program usually include purchasing, logistics operations, economics, accounting, business law, global logistics, and storage & distribution. An associate degree program may take 2 years to complete, while a bachelor’s degree may take nearly 3 to 4 years to complete.
Although to become a professional logistics manager, you don’t need to be certified, aspirants should nonetheless acquire certifications to master the field and come across as value adding potential candidates for the position. Certifications demonstrate a commitment to excellence, and also show that the holder has a broader knowledge-base, thereby giving them a competitive edge over other candidates seeking the position.
The International Society of Logistics (SOLE) and American Production and Inventory Control Society (APICS) offer various certifications.
Apart from college coursework, employers may prefer to hire those candidates as logistics managers who have a work experience in logistics operations. Experience is always a plus point because it shows that you understand the requirements of the industry, know the nature of the job, and can execute tasks related to logistics successfully and correctly. Besides this, individuals with work experience also require less time in training and can start adding value to the company from day one.
So, before you think about applying for a logistics manager position, it is best that you try to gain relevant work experience in warehouse management and delivery services and work your way up.
The purpose of a logistics management degree is to equip aspiring logistics managers with the skills they will need to work as a logistics manager and build a career in the field. While students are required to undertake many courses to complete a logistics management degree, following are the most important things they learn during the years spent studying logistics management:
Logistics management is a challenging and lucrative career and an online degree in logistics management can help prepare you for it. Although they may vary in their specific requirements, most online supply chain and logistics management degrees consist of 120 credit hours, usually completed in four years of full time study. However, there are accelerated online logistics management degrees that require as little as 34 credits to complete the degree.
The online logistics management degree teaches supply chain management, inventory, procurement, warehousing, and transportation. Often, the online degree programs in logistics management require students to participate in live-chats. However, no on-campus attendance is needed.
The online logistics management degree opens up two career streams for its graduates—supply chain management and logistics management. Holders of the online logistics management degree are eligible to apply for an online M.S or MBA degree in logistics management.
A logistics manager is responsible for supervising the entire logistics supply chain of a company or organization including purchasing, movement, storage, scheduling, and delivery. As a logistics manager, you will need to ensure that the right products are delivered to the right location on time and at a good cost. Understanding the skills required to do this is critical here. So, what are the skills you’ll need to make it as a logistics manager? Following are the 8 most valued skills within the transportation and logistics industry:
Fortune.com predicted in 2014 that the logistics business will be looking to fill roughly 1.4 million jobs by 2018. We’re in 2018 and things are almost as bright for aspiring logistics managers as predicted. The U.S. Bureau of Labor Statistics (BLS) says that the logistics field will grow at an average rate higher than 26% from 2016-2026. As of 2017, the Median pay in the logistics field was $75, 590 per year or $35.86 per hour.
Entry-level positions in logistics pay up to $30,000 per year while logistics managers can earn up to $75,000 a year. When it comes to building a career in logistics, there are professional associations that you can join to network for career longevity. Essential for growth into the leadership positions earning $70,000 or more per year are creative problem-solving ability and mature organizational skills.
The supply chain manager develops solutions for the supply chain and implements them across all functional areas including logistics. A supply chain manager has knowledge of logistics and distribution, inventory management, purchasing, manufacturing, product development and marketing.
The warehouse manager is responsible for managing the placement of inventory within a warehouse and ensuring accurate levels of inventory. Generally, a warehouse manager works in retail or distribution and transportation.
The transport manager ensures that haulage and public transport get to their destinations safely, on time, and in the most cost-effective way. Transport managers progress into general management roles of larger units or more specialized roles such as a logistics manager.
The operations manager supervises the entire production process which involves procurement of raw materials, storage and transportation, and the utilization of available resources which include people, technology, information, equipment, and other resources.