In the fast-paced world of supply chain management, every company is looking for a competitive advantage that will improve efficiency and boost profit margins. However, many rising business leaders overlook crucial elements when they search for methods to increase productivity: their human resources (HR) department and logistics management (LM) practices.
The University of Texas at Tyler (UT Tyler) online Master of Business Administration (MBA) with a Concentration in Supply Chain Management program emphasizes the importance of strategic HR management in building a thriving company culture, retaining talent and accomplishing organization-wide objectives, as well as the value of LM in tracking the product manufacturing and delivery, including post-sale service. The program prepares students to value the connection between HR strategy, LM, supply chain practices and organizational success.
The Importance of Logistics in the Supply Chain Process
According to IBM, supply chain logistics “refers to the management of the production, transportation and distribution of goods throughout a business’ overall supply chain.” LM involves “coordinating activities tied to the sourcing, procurement and movement of raw materials to factories, transforming materials into finished products and delivering products to retailers and customers.”
Proper logistics management is essential for various reasons. Increased efficiency supports operational efficiency, cutting costs and saving time. This ensures timely delivery and order fulfillment, benefitting businesses and consumers alike, and lowers holding costs and transportation expenses. Other strengths and strategies of LM include constant assessment of data quality, tracking and monitoring technologies, and cost-reduction and -optimization opportunities.
Per IBM, “these benefits can help drive a competitive advantage. Well-managed logistics allow companies to respond quickly to market changes, offer better delivery terms and address disruption in the most cost-effective ways.” To ensure effective logistics processes like inventory management, warehousing, transportation and distribution, customer service and returns management, an organization needs effective HR frameworks that empower personnel and optimize organizational systems and structures.
How Human Resources Strengthens Supply Chain Management
Human resources professionals often serve as the connective tissue between supply chain management employees and executives setting the company’s strategic goals. According to an article from HR.com, due to their proximity to the company’s leaders, HR employees possess a deep understanding of why the company is pursuing a specific strategy.
In fact, HR staff must continuously train and work with on-the-ground employees to ensure that supply chain management processes are actually accomplishing the long-term and short-term goals of the organization. Human resources leaders can track whether a training program or internal communication software is having the intended effect, such as improved client satisfaction rates, faster delivery times or cost savings, according to HR University.
An HR department is strong when it wastes little time on unproductive strategies and invests in mentorship programs, professional organizations and other training opportunities that help employees succeed. These techniques also boost employee engagement or enthusiasm for their work.
According to research published in Human Resource Management Review, when it comes to HR systems built specifically to support supply chain management, the most effective systems share several characteristics. Researchers found successful HR departments do the following:
- Support strategic partnerships and collaboration outside of the company
- Emphasize building trust through the sharing of resources and knowledge
- Create opportunities for supply chain partners to train together
- Promote sensitivity to supporting each supply chain partner’s interests
- Introduce policies that support synergy between different parts of the supply chain
HR departments enforce their company’s core values by developing healthy relationships between different parts of the supply chain and emphasizing each partner’s common interest. Successful departments help employees understand that everyone has a mutual responsibility to protect proprietary information and assets, follow best practices and protect their sources of competitive advantage.
Learn Elements of Effective HR Management in Supply Chain With UT Tyler
UT Tyler’s online MBA in Supply Chain Management program gives graduates a holistic view of how logistics and human resources can work effectively to correct potential weaknesses in organizational strategies, create a sense of trust among partner organizations and improve overall supply chain performance.
The program’s Strategic Human Resource Management course especially helps students understand how HR managers develop competitive advantages for their employers. The Logistics Management course gives students an overview of the logistics management of materials, communications and financial processes involved in industrial distribution. Graduates are prepared to establish and succeed within an HR framework optimized for logistics management, warehousing and all other crucial elements of the supply chain.
Learn more about UT Tyler’s online MBA in Supply Chain Management program.