Managerial Issues Within Logistics

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For this Discussion Board, you need to read and reply to this classmates named Jasper Lee post.

Managerial Issues Within Logistics

In the article 10 Challenges Faced by Logistics Managers in 2021, the author focuses on those issues related to ground transportation. However, since 71 percent of freight in the United States is moved by truck, these issues will affect most logistics managers. I will highlight the three that I found the most interesting.

One issue that logistics managers face that I had not previously considered is perception management. Many young people entering the work force do not view the trucking industry as a legitimate career path. This makes it difficult for logistics managers to attract talented applicants. According to the article, warehouses, shipping companies, and trucking firms struggle to attract college graduates for management positions. The trucking industry accounts for 7.4 million jobs, or six percent of all full-time jobs, in the United States. This lack of awareness causes people to miss employment opportunities and jobs remain unfilled. As mentioned in the last discussion board, the incorporation of robotics in logistics operations may assuage some manpower demands. However, the long-term solution is to educate people on the importance and availability of career opportunities in logistics.

Another issue posed to the logistics manager is the implementation and effects on operating costs of government/environmental regulations. For example, since 2007, the government requires installation of diesel particulate filters, “exhaust scrubbers”, on commercial diesel vehicles with the goal of reducing sulfur emissions. However, the scrubbers inhibit the flow of exhaust fumes out of the combustion chamber in vehicle engines, thereby reducing fuel efficiency and increasing costs. Protecting the environment is important (of course) but managers must minimize effects on profitability.

Streamlining information processing within the organization can improve productivity and reduce operating costs. Digitizing commonly used forms such as invoices, vouchers, checklists, and HR action requests can reduce manhours spent processing paperwork but can also expedite company functions. The author also recommends automating administrative processes thereby eliminating redundancy. Digitized checklists, logs, and reports can provide real time updates to logistics managers to the status and location of each shipment. This gives logistics managers the increased ability to react quickly to an ever-changing environment.