Learning Logistics

If the facts don’t fit the theory, change the facts. Albert Einstein

Logistics

Logistics, what is it?  One common definition is, the planning, implementation and coordination of the details of a business or other operation.   Logistics have become an integral part of business and industry as they look for ways to reduce operational costs while increasing overall profitability.  Interestingly enough, one of the most effective ways to reduce costs and increase profits is by understanding logistics.

Old Model

Years ago I was a retail manager.  Back in the day, the store sales floor would hold approximately $1.5 million in products.  As those productsclothes, coffee pots, televisions, hammers, shoes, pencils, etc.sold, the shelves would have to be restocked.  At that time, prompt restocking required vast amounts of inventory to be on hand in storerooms.  On average, each store was required to hold approximately $1,000,000 in excess inventory in stock to keep the sales floor shelves filled.  Technology changed everything.  Now when a sale occurs, an order is automatically placed through the cash register to a distribution center where replacement products are automatically pulled and sent to the store.  The whole process is efficient and effective.  Industry refers to this controlling of supplies as just-in-time delivery.

Industry realized that purchasing millions and millions of dollars of raw materials and warehousing those materials is both incredibly inefficient and costly.  In most instances business was borrowing money from a bank and paying interest on the principal to stay in business because they needed vast supplies of raw material readily available for use at a moments notice.  Logistics not only changed that, but taught us a couple of important principles for effective resource management.

1. Don’t buy any resources until you need them.
2. Don’t receive any resources that you cant use immediately.

Maintaining large inventories is inefficient and costly, especially when you can get them delivered just in time.

A New Model

The private sector is constantly striving to increase efficiency because they understand that it is through innovation that they become more competitive.  Innovations in logistical management are about to change the methodology for providing meaningful and relevant education to our workforce.

Historically, when individuals decided to gain an education after high school, they enrolled in a college or university, chose a degree program, and then spent 4 to 5 years building their knowledge inventory.  Building a large enough inventory of knowledge to enter the job market was a long and tedious process; all too often a history lesson.

Many of the technologies students learn in a four year college program are outdated by the time they graduate.  Exact numbers concerning the pace of change in technology vary widely; however, there are some excellent studies that suggest the average life span of a computer application is 18 months.  The inability of college curricula to accommodate these changes results in graduates entering the workforce with a body of knowledge that is incomplete or irrelevant.  Using emerging technology, industry has created a new type of educational delivery based on just-in-time logisticsa concept I call Educational Logistics.

Educational Logistics

What is educational logistics?   Similar to the practice of products arriving just in time to use them, knowledge is provided in the same fashion.  Companies that learn how to create an educational logistic culture foster a working environment where employees, at all levels, will have access to the education resources and knowledge in time to apply them in the workplace.  Business understands that acquiring knowledge is very expensive. Consequently utilizing educational logistics ensures that:

• the knowledge obtained is relevant.
• the knowledge obtained is readily applied.
• the knowledge provided is in direct proportion to demand.
• education programs are more compressed.
• education programs are cost effective.
• a measureable return on investment results.

Just as raw materials and products must continually flow to and from any manufacturer, to stay competitive, the acquisition of knowledge must flow as readily.  While educational logistics certainly has advantages, it does commit those institutions who embrace the concept to continuing staff training and development.

Innovation of educational logistics will play a significant role in helping transform the workforce.  To help business and industry with the transformation, educational leaders should follow the pattern of industry and look at what this means to delivering future educational programs.

If you have ever worked for a company that provides just-in-time learning I would like to hear about it.

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