new competencies and
innovations in logistics

The Business Improvement Through Supply Chain Strategies Programme was designed to develop the logistics competences of employees and to improve the performance of small and medium sized businesses to improve their application of supply chain and logistics concepts and principles. This programme was developed by a private training organisation and targeted at Managers, Supervisors and Employees, working in a variety of roles including those such as Logistics Controllers, Assistants and Warehouse Team Leaders in a number of companies in a variety of business sectors. It has the following objectives:

• to increase knowledge of logistics as a key strategy;
• to understand the benefits of logistics integration in the business operation;
• to develop core competences and skills in logistics functions;
• to identify improvements in logistics functions and implement solutions.

On the programme participants learn to view business as an integrated flow of activities from order inception to after-sales service.

The programme offers companies the ability to improve performance in areas such as the following:

• operate materials handling, warehousing, inventory and transportation more efficiently;
• identify cost efficiencies in the supply chain;
• give employees an opportunity to upgrade skills and proceed to higher Logistics accreditation;
• gain specific company benefits through in-company applications with Logistics professionals.

The programme is run over a period of 5 months and consists of 10 training sessions and 2 in-company consultation sessions with each participant. The purpose of the in-company sessions is to assist participants in problem analysis, and to help in the identification of problem areas and provide guidance in finding solutions. Trainers/consultants from the programme also provided support for the development of participants' projects, which address the identified problems.

The formal training modules are as follows:

• Evolution of Logistics Management
• Supply Chain Integration
• Functional Excellence
• Customer Service
• Company Projects
• Supply Chain Relationships
• Global Logistics
• Inventory Management
• ICT & Logistics
• Transportation
• Warehousing
• Materials Handling & Packaging
• Quality Procedures
• Employee Excellence

Participants successfully completing the programme are awarded the Institute of Logistics and Transport - Certificates in Logistics.

The programme has so far been run in 4 regional locations, covering 40 participants. It is funded through fees by participating companies as well as through support from local enterprise agencies and FÁS.

Participants have developed new competences in a range of logistics related subjects eg warehouse organisation, greater application of IT to their jobs, reviewing and measuring logistics efficiencies in their companies and departments. Participants have become more aware of the need to share information with other business departments and employees. Also they are more aware of the need to provide added value to the customer.

The training provider organisation has experienced difficulty in convincing small and medium sized enterprises to send their employees on a programme focusing on supply chain management and logistics related issues. This is reflective of a general lack of awareness among such businesses of the importance of SCM to their survival and growth in the future. Hence the programme which has been run in a number of regions over the past two years, has required vigorous promotion both by the trainer provider and by the local enterprise agencies.

Also some participants had problems completing their project work on time. On future programmes it has been decided to introduce the project process at the start of the programme and to require that projects be completed by the end of the programme.

The following are examples of the results stemming from projects carried out on the programme, and which illustrate the new competences that the participants acquired.

Participant (a):

This participant works as an Operations Controller in a SME - a role similar to a Logistics Controller. As part of her project she diagnosed bottlenecks/inefficiencies in the order processing area within her company. She carried out research into affecting improvements in this, particularly through the use of Information Technology. Through her work in causing new systems and procedures to be implemented, significant improvements have been made in "customer order intake" and order processing through the company. Errors have been reduced, and customer service has been improved. Cycle times are faster- invoices issued promptly and cash flow improved.

Participant (b):

This participant is a warehouse charge hand who selected a project to plan and implement efficiencies in the "finished goods" function of the warehouse. He detailed the system and process of receiving goods and identified leverages for improvement. By integrating the warehouse system with administration, he was able to reduce the steps in the receiving goods process from 8 to 4, thereby realising substantial savings in the warehouse.

Participant (c):

This participant works as a Customer Service Representative, in effect in a role of Logistics Assistant. She and a colleague are responsible for receiving product from customers for storage and ensuring accurate records on inventory counts for customers. She identified that errors occurred too frequently and wanted to reduce that rate and strive for zero variance. Progress has been made on this through the streamlining of paperwork and administration of "finished goods in".

Progress has been made on this through the streamlining of paperwork and administration of "finished goods in".

This programme has provided in many cases first time formal learning in logistics and will enhance employees' ability to move into more responsible logistics related positions, either in their current employment or in other companies.

At least two participants from each of the four programmes run so far are planning to attain a higher qualification in logistics possibly through distance learning.

This process of providing formal training inputs in supply chain management and logistics along with in-company consultation and associated project work can be replicated throughout SME's in all business sectors. Thus employees in small companies who are working in logistics related occupations can gain initial formal learning in this field and enhance their careers in logistics.