Working in Procurement and Logistics Management?

There is big chance for employment if you are versed with procurement and logistics management. You may beinclined to study the course. Why?

What Is Procurement and Logistics Management? 

A bachelor’s degree in procurement and logistics management can land you into one of the rewarding jobs in the field of business. You know what procurement as well as logistics is, but what you may wonder about is how important these are from the perspective of a business organisation.

We first define “procurement”. It is the manner by which you procurement and logistics managementacquire the needed goods and services. The qualification of this does not end there because when you procure, you see to it that you get the needed goods and services at the best cost, cheapest if possible.

Next we go to the meaning of logistics. The word can be defined in different contexts but for this discussion, we take it from the view point of a business environment. Logistics is a framework of business planning so that the materials, services, capital and information assets are properly managed.

Procurement management is a necessity for large companies.

Procurement management is the way companies buy the company’s economic resources and other inputs from its sources or suppliers. In large companies, there is a separate department for this purpose; small firms do not. The owners of small companies usually handle the procurement management. Bigger companies have more economic resources that include labour, land, capital and other physical sources. The need for these is in huge quantity or big volume thus necessitating more personnel for the procurement management procedure.

The duties of procurement offices do not end in the purchase of economic resources because there are other functions that can be assigned to this specific department.

  • Big companies use procurement management to enter into legal contracts that cover purchase of inputs needed in the conduct of business operations.
  • Procurement management takes the task of hiring the members of the labour force that will convert the purchased raw materials into the company’s finished products.
  • Procurement managers go beyond hiring of personnel for the manufacturing process but also employees for the financial team. This consists of accountants, analysts and others.

What logistics management duties cover

Logistics management has a very wide area of covered duties. However, you can put together relevant functions to come up with three basic components, namely transportation, warehousing and packaging. Transportation management entails inbound and outbound transportation and fleet management. The responsibility includes fuel management and vehicle tracking systems that will prevent delivery delays and violations of government rules and laws. If you will take a closer look at the warehousing component, you will deduce that this is connected to inventory and storage management and you are right about that. Packaging may be the last part of the production process and again the logistic management team takes charge.

Warehousing, its functions and types of warehouses

It is easy to define warehousing as a part of the logistics management. From the title, you know that the function pertains to the responsibility of overseeing the storage of goods. Time utility is taken care of because warehousing ensures that the stored materials are released in a timely manner, when they are needed.

The warehouse or warehousing performs, aside from storage, price stabilization, financing, risk bearing, grading and packing functions. A warehouse may fall under one of the three groups or types which are public warehouse, private warehouse and bonded warehouse. The types however are not limited to these three as there may be some other kinds like special commodity warehouse, institutional warehouse and cold storage or refrigerated warehouse.

Being hired by a large company in procurement, logistics and warehousing management will be a rewarding job. A company needs a lot of people in these fields making bachelor in procurement and logistics management degree a means to a gratifying and fulfilling career.

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