new competencies and
innovations in logistics

The education system is developed in close collaboration with 28 SMEs, the University of Southern Denmark, Centre for Small Business Studies, which is an institute specialised in SMEs, three industry organisations related to the SMEs and Danish Technological Institute. This specific constellation of SMEs, university and industry organisations has been set up to handle innovative projects introducing new management skills in SMEs. The outputs of this project fall into three different groups:

• New research results related to SME's.
• Development of new consulting services focused on SME's.
• New knowledge related to SME management for the SME partners.

Related to this project there have been a number of educational and training lessons for the SME partners. One of the experiences here has been that the daily work within the SME has absolute first priority, and therefore education and training will always have last priority. The training concept was consequently changed from whole days to half days during the afternoons.

Focus on Logistics is an education/training programme based on five modules of four hours. There are 4-6 weeks between each module. The basis for this programme is that the structure makes it possible to introduce logistics thinking into SME companies and the companies have the possibility to work with their own logistics problems. Therefore the companies also have the possibility to implement new logistics solutions during the training/education. The structure is specially designed for SMEs as it is based on 4-5 hours modules and the results are instant and related to the daily problems of SMEs and to implementation.

Key elements in the education are the modular structure and the case based training, where the SMEs use their own projects as cases. The use of a modular structure makes it possible both to introduce new logistics knowledge and to implement the new ideas continuously being developed within the companies. Especially the continuous implementation of logistics changes is a key element, because it ensures the effect of the education/training. In a lot of traditional logistics education/training, the participants have to introduce the ideas by themselves after the education/training. Therefore they are dependent on their own knowledge and spare time.

The case-based training makes it possible for the participants to relate the theoretical based training to their own company during the introduction of specific business problems. Therefore it is possible to introduce e.g. new sorts of analyses as the cases generate a lot of different examples of how it is possible to use the tools in practice.

Between each of the 5 modules the participants are given different types of homework, which helps to convert the theoretical elements to practical tools for the company. The homework is closely related to each module, and therefore it is a continuation of the education. Types of homework are e.g. analyses of the logistics performance by using key performance indicators and analyses and redesign of the logistics flows within the company.

During the training the participants get a wider view on the logistics systems in which the company must operate.

The modules have the following headings:

• General logistics.
  After an introduction to the logistics area, the focus is set on the logistics costs, and how the costs are generated. The 'homework' is to estimate the total logistics costs - both the internal costs and the costs generated within other companies through the supply chain.

• Logistics concepts and tools
  Introduction to different logistics concepts. The different concepts are used for inspiration.

• Analyses of product and information flows.
  Tools to analyse the actual situation used for clarification of the situation and for inspiration related to optimisation of the logistics flows.

• Redesign of logistics flow.
  Redesigning the logistics system based on logistics analysis. This process includes tools to generate new ideas, which can be used inside the company to make changes in the business processes.

• Logistics projects and plans for implementation.
• Tools for implementation of new concepts.
  The training programme gives the participants logistics analysing tools, by which they are able to optimise the logistics flow in their own company. Using these tools, the participants will be able to handle the optimising problems internally within the company. The training is usually the first specific logistics training the participants have, because the participants will normally have a more general vocational educational background.

Traditionally it is a problem for SMEs to participate in education/innovation programmes, because the daily work in the company has first priority. Therefore it is very difficult to make a traditional training programme and make sure that the target group will participate. The chosen solution here is the modular structure, which makes it possible to have half a working day in combination with each module.

Even this modular structure has its limitations in stimulating companies to join the training programmes, as many SMEs do not use external training. There are several reasons for this. One major problem is that by taking one person out of the company for even half a day there will be a lack of resources. There is no solution for this problem. Some companies do not want to join open training, as they are afraid to reveal their core competences. For those companies, it is possible to make a specific training programme, in which only employees from this company participate. This type of training is often very successful and it is possible to go into detail with some of the company's problems. In traditional training programmes, participants share experiences in the general discussions, but often it will not reveal core competences.

The result of this modular system is that it is now possible to construct education systems specially focused on SMEs. The training programme has been running since 2000 with several different companies covering companies from 20 to 1000 employees. This shows that the contents of the training are useful for the target group even in different sized companies, but it also shows, that even small companies can have benefits from theoretical logistics tools if they are introduced in the right way.

This training programme has a number of elements of good practice which can be transferred to other contexts:

Modular structure

• The modular structure makes it possible to split up training programmes into several parts, so it is easier for small companies to join the training programme. Each module offers the training, but at the same time several employees from the same company can handle logistics opportunities. This will always give a spin-off, which can improve the logistics set-up.

Homework

• Between the modules, the trainees are supposed to work on homework which is closely related to practical problems in their own company. This will always give a spin-off, which can improve the logistics set-up of the company.

Hotline

• The hotline makes it possible for the participants to get special support, when they are implementing tools into the company. This element has two different purposes. One is to make sure that the participants understand the tools and the other is to help the participants in using the tools for optimisation of the logistics flow.