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Logistics Manager

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AVG. SALARY

$100,770

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EDUCATION

High school (GED) +

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JOB OUTLOOK

Stable

Interviews

Insider Info

You call a department store and order a refrigerator. The order clerk politely asks you what day and time would be best to deliver your appliance. How does the store get fridges to all their customers?

Simple -- they hire a logistics firm.

Jim Davidson is a vice-president and general manager at a logistics firm. "In the state of Indiana, we do most of the home delivery for Sears' big ticket items," he says. "Blue uniformed people with Sears on their shirt deliver the items, but they're our people.

"We've implemented programs like window times, where at the point of sale, Sears would ask the customer what day and what time of day the customer wants the item delivered. We deliver it within a two-hour window. Sears couldn't do those things themselves."

When people enter the logistics industry, they stay put. Is it because of the healthy salary? "I don't think money keeps them in the career," says Davidson. "Enough studies have been done to show where money stands as a motivator, and it's never number one. People like the [varying nature] of logistics and the ability to be part of a complete project. Instead of putting a nut on a bolt in a car factory, it would be comparable to building a whole car.

"We have customers with multimillion-dollar contracts," he says. "To sell, implement and operate such a business takes a team effort. You get tremendous satisfaction out of being able to bring something up out of the ground and see it work as a result of what you've been able to do."

Professor Patrick Barry is part of the logistics and transportation department at Northeastern University.

"Logistics goes right back up the supply chain to the raw materials," he says. "People are beginning to call it supply chain management."

Barry, a full-time lecturer in logistics and transportation, spent 10 years with the United Parcel Service. He was responsible for developing and training several teams dedicated to providing UPS's larger customers with integrated logistics solutions.

"For the most part, it's dealing with transportation and storage," says Barry. "But because everyone is so concerned with inventory today, logistics also deals with the financial aspect of it."

For every dollar of inventory a company holds for a year, it costs them between 25 and 35 cents in carrying costs. It's easy to see how inventory has become a major issue.

"In the 1970s, we used to believe inventory was really just cash sitting around on the floor of the warehouse and on a balance sheet. But today, we realize that's not the case," says Barry. "Now, the logistics manager uses different transportation modes and storage modes to affect the amount of time a company holds an inventory. And he's balancing that against customer service."

Marilyn Ryder is an expert in production and inventory control. Her association teaches courses in logistics management and offers certification in the field.

"Companies are looking for people who graduate out of a school...with a piece of paper that says this person is an expert at logistics management," says Ryder.

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OCAP believes that financial literacy and understanding the financial aid process are critical aspects of college planning and student success. OCAP staff who work with students, parents, educators and community partners in the areas of personal finance education, state and federal financial aid, and student loan management do not provide financial, investment, legal, and/or tax advice. This website and all information provided is for general educational purposes only, and is not intended to be construed as financial, investment, legal, and/or tax advice.