Logistics is the time-related positioning of resource, or the strategic management of the total supply chain. It is the movement and supply of goods throughout the economy – from raw materials, through all stages of the manufacturing process, to the final delivery of the finished product to companies and consumers. Logistics embraces an array of distinct industries that work across all types of transport and a variety of supply chains. Logistics is very often an ‘invisible’ industry, although it underpins the economy. It includes the planning, routing and movement of freight across all transport modes (road, rail, sea and air), as well as associated activities such as warehousing and storage, removals, freight forwarding and wholesaling. Ultimately, logistics works to ensure the right goods are at the right place at the right time.

According to the latest figures available from the Department for Transport (DfT), the UK logistics sector is worth almost £75 billion to the economy, employing around 2.3 million people in some 196,000 companies. Freight logistics companies fall into two groups: those that manage their own distribution system and those that manage it on behalf of another company; the latter organisations are referred to as third-party logistics (3PL – see box). According to Skills for Logistics (the Sector Skills Council for the UK’s freight logistics industries), over 60% of UK freight is carried for ‘hire and reward’ (i.e. 3PL) on behalf of another company.

WHAT IS 3PL?
Many companies now outsource their logistics, or elements of them, to third-party providers (3PL). These subcontracted services can include:

• primary and secondary transport and distribution
• inbound logistics and consolidation
• inventory management
• order processing and case/unit picking
• invoice and management reporting.

Although this article will not deal with transport, it is almost impossible to separate it from other parts of the supply chain. The latter has to be an integrated operation if it is to be successful, and this principle will be familiar to anyone who has spent some time in Services logistics. Many qualifications (see below) include all parts of the supply chain.

Supply chains are becoming increasingly adaptive and agile as competition affects them, and e-management of them is often the norm. Indeed, IT and electronic communications have become key competencies for logistics managers, with the supply chain at the heart of many e-commerce developments. Supply chains can start in Hong Kong and end in Harlow. Warehousing involves minimum holdings while satisfying customer expectations.

There are significant skills shortages throughout logistics, particularly at levels 2 and 3, and major employers offer significant training to their staff.

Logistics in the Services
Each Service has a number of highly trained and experienced logisticians who support operations, training and exercises, unit moves, static bases, war stocks and equipment pools. They work in Defence Equipment and Support (DE&S) – the MoD’s procurement and support organisation formed following a merger of the former Defence Procurement Agency and Defence Logistics Organisation – in ships and ports, in Army formations, and on air stations and detachments, to turn plans into reality.

Every unit has its own logistics staff, performing exactly the same functions but at a lower level. They manage and deliver the essentials of fuel, ammunition, water, food, clothing and personal equipment to the people actually involved in operations. They may have ranks and job titles that are peculiar to a single Service, and in many cases they have enough experience to gain qualifications – usually vocational ones – in the logistics field.

Each unit and sub-unit also has a host of people who carry out many logistic functions as an integral part of their everyday work, although they would never dream of calling themselves logisticians. Many other military people are also concerned with logistics although they do not themselves run facilities. They may be involved with research, design, trials and tests, project management, procurement, development, maintenance, finance, training, and so on.

For resettlement there are a number of providers offering training, as well as Chartered Institute of Logistics and Transport in the UK (CILT(UK)) courses in transport and logistics management, and supply chain management, available via the CTP (check the CTP website for more information). It is important to get qualifications that will still be valid in the months and years ahead; logistics and its qualifications are changing rapidly.

Qualifications and training
There are five main routes to the upper echelons of logistics:

1. graduate training
2. postgraduate entry
3. with management experience
4. school (or young Service) leavers
5. professional qualifications.

TRANSLATE YOUR SKILLS
Whatever the entry route, the following personal qualities are valued in this field.

• Core technology skills:
– IT literacy
– machinery
– warehousing – engineering
– warehouse management
– analysis.
• People skills:
– problem-solving
– leadership
– communication
– team-building
– decision-making.
• Personal qualities:
- analytical
- presentation
- numeracy
- decision-making.
 

Graduate training entrants join management-training programmes run by employers. They will then often take the professional qualifications of the relevant institute.

Postgraduate entry applicants will have completed an MSc or an MBA. People without a first degree can often enter a postgraduate programme provided that they are up to the academic demands of the course.

Graduates with management experience may well see transport and logistics as the logical next career step and will need to gain the extra knowledge to make it possible.

Some school (or Service) leavers with A-levels may want to start work at once. For them, the best route into management might well be on-the-job experience.

Professional qualifications must reflect the needs of the profession and employers, so they are under frequent scrutiny to ensure they are relevant and provide the right standards. They can enable Service leavers to translate their Service skills into their civilian equivalents.

CILT(UK) and the Chartered Institute of Purchasing & Supply (CIPS) offer qualifications at a number of levels that are valued in the industry. Both institutes will allow exemptions to various levels of qualification and individual subjects based on prior learning and experience. The sector skills council for logistics and distribution is Skills for Logistics.

Chartered Institute of Logistics and Transport in the UK
CILT(UK) offers a number of modular qualifications at the following levels (because they are modular, most can be studied as stand-alone units).

• Level 2 Certificate – for new employees or students; provides a broad understanding of logistics and transport.
• Level 3 Certificate – designed to provide a solid foundation for a career within the transport, logistics and supply chain sectors; aims to equip existing and potential supervisors and first-line managers with a complete set of management skills; the qualification offers two different routes – competency and examination.
• Level 5 Professional Diploma – a professional qualification for those individuals already working within logistics and transport who wish to develop a strategic view of logistics and transport operations, and to become capable of reviewing operational activities; the Professional Diploma provides the educational standard for full Membership of the Institute (MILT).
• Level 6 Advanced Diploma in Logistics and Transport – a qualification providing those strategic management skills required for professional and business development for individuals in the logistics and transport sectors.
• MSc International Logistics and Supply Chain Management/MSc International Transport and Logistics – providing the necessary skills and knowledge to bridge the gap between operational and strategic management, to fulfil professional potential and enhance strategic capabilities for the benefit of both individual and their organisation.

Chartered Institute of Purchasing & Supply
CIPS currently offers qualifications at the following levels:

• Introductory Certificate in Purchasing and Supply (level 2)
• Certificate in Purchasing and Supply (level 3)
• Foundation Diploma in Purchasing and Supply (level 4)
• Advanced Diploma in Purchasing and Supply (level 5)
• Graduate Diploma in Purchasing and Supply (level 6)
• Executive Diploma in Purchasing and Supply Management (level 7)
• International Qualification in Purchasing and Supply.

Vocational qualifications
Although there are relatively few logistics vocational qualifications, there are many units that are relevant to logistics in vocational qualifications that are offered by the Services. It is also possible to ‘grow’ an NVQ/SVQ through a military vocational qualification office or a local college. Higher National, and National Certificates and Diplomas can also be gained through part-time study – a visit to an education centre or local college can provide the necessary information.

Employment
With the huge variety of logistics jobs available, it is possible to highlight only a few areas of employment that Service leavers might consider.

• Manufacturing makes great use of just-in-time (JIT) management to cut unnecessary costs, with materials arriving in the right quantities and at the right times to meet production schedules, and finished goods despatched to customers.
• Retailing is a very competitive business and the supply chain for a major outlet has to be carefully managed to maintain profit margins.
• Logistics service provision is a growth area as more organisations outsource some or all of their logistic support, so that customer satisfaction will be a prime goal of the service company.
• Consultancy offers opportunities for experienced logisticians to work either in-house or for an external business, to advise clients on supply chain matters.

Readers should note that logistics is a very broad field, and any company or department specialising in this field will also need staff working in the administrative, financial, IT, human resources and marketing functions. A background in logistics is now accepted as a basis for career development in general management and a board-level position in a major company. Much (including salaries) depends on the area of the industry and the size of the organisation.