Reverse Logistics - Logistics Quarterly

companies.The functional areas by themselves are unable to
obtain cross-functional optimizations and leverage the value
of a fully integrated supply chain.The correction of this situation
requires the support of senior management to empower a
department responsible for all areas of the supply chain.
Some groups such as the Canadian Association of Supply
Chain & Logistics Management (SCL) have attempted to
bridge the gap. They have formed a partnership with The
Laurier Institute (of the School of Business and Economics
at Wilfrid Laurier University) to provide an executive program
to deliver the SCL-developed courses in strategies and
practical solutions for the logistics industry.The objective is
to provide fundamental tools and concepts needed to integrate
and streamline supply chain operations and manage
logistics networks while increasing operating efficiency.
Similar programs have been established at McGill and York
Universities and likely others. They offer intense executive
programs over several days that provide a high level introduction
to the area and are geared to senior management
who can influence the structure and resource allocation of
an organization. As valuable as they are, they still do not
develop professionals in the logistics industry, but generally
wet the appetite for more education.
Recognizing that there is still a gap in the industry for
trained logistics professionals, community colleges have
started to develop programs that support supply chain management.Toronto’s
Humber College is an excellent example
of a college that provides a comprehensive one-year post-secondary
degree in the area. George Brown College in Toronto
and Durham College in Oshawa are two others that are providing
support in logistics training.
Contrast this to the Forum for International Trade Training
(FITT) established in response to a Canada-wide shortage of
individuals with international trade skills. Formed in 1992,
FITT is government-funded and private sector-driven organization
that offers programs and workshops to its members
through the internet and universities, community colleges,
CEGEPs and private institutions across Canada.An extensive
list of institutions and locations is listed on www.fitt.ca. The
logistics field could learn from this example and perhaps use
it as a model to develop the profession.
Some universities are starting to provide supply chain
management courses in their business programs and a select
few, a business degree with logistics or supply chain as the
major area of concentration.The Sauder School of Business
at the University of British Columbia has a Master of
Management program in Transportation & Logistics. The
University of Calgary and University of Manitoba have similar
transportation-focused programs. All are greatly needed to
develop professions in the field.Additional schools with programs
are the University of Montreal and one under development
at Wilifrid Laurier University (WLU).WLU is interesting,
not only because of their partnership with SCL, but also
because of their desire to have an MBA and Ph.D.distinction,
a first in Canada.
Contrast this to our largest trading partner south of the border.A
quick search of the Internet revealed 36 major universities
all offering extensive programs with majors at both the
46 LQ winter 2003/2004
graduate and post gradate level in logistics,distribution,transportation
and materials management. This included such
notable institutions as Arizona State, Georgia Institute of
Technology,Michigan State University,MIT,Ohio State and the
University of North Florida.The only Canadian university on
the list is the University of British Columbia.
Some believe that the Europeans are further advanced in
their logistics knowledge and capabilities than North
Americans. They receive extensive formal training at such
places as the Cranfield School of Management and have
experience in driving efficiencies from having a common
market and currency with a large population base and many
languages. Even Australia, a country with a smaller population
than Canada, but with similar characteristics, offers university
level programs in supply chain management and
exports their expertise to other countries.
In a country heavily dependent on international trade,
Canada could find itself at a competitive disadvantage if we
are unable to leverage the efficiencies of managing the total
supply chain.We need to develop our analytical skills to take
full advantage of the available technology to integrate all
functions of the supply chain into a lean, flexible, efficient,
and highly cost-effective operation to counter the US
economies of scale.
There was a time when it was believed that bigger is better.The
goal was to build large factories and run them seven
days a week, 24 hours a day, to obtain the lowest possible
manufacturing costs.Volume was key and Canada with its
small population base needed the volume from exports to
obtain the critical mass necessary to support world-class
manufacturing facilities.This was true when we considered
only manufacturing costs. However, with logistics and supply
chain costs representing almost ten percent of the GDP,
and in some industries a value greater than the actual manufacturing
costs, this old paradigm may no longer be valid.
The Japanese showed us how “batches of one” could be
the most efficient way to operate.Replacing make-to-forecast
push inventory strategies with make-to-order pull strategies,
that consider the supply chain costs as part of the total business
model, could result in the lowest total operating costs.
While manufacturing costs could be higher; and they do not
necessarily have to be; they could be off set with logistical
savings that result in a lower overall operational cost. Lean
thinking, with its documentation, simplification and elimination
of waste, shifts the historical trade-off between service
levels and inventories.This can result in different conclusions
in our action plans to compete in world markets.
Canada must develop the expertise that will allow us to
make informed decisions on our long-term strategic direction
and influence our policy makers by providing appropriate
research in this critical area.As logistics professionals,it is
up to us to take the lead and insist that our educational institutions
be provided the opportunity to develop their capabilities
in this area.This will take a combined effort between
the government and the private sector. We can start by supporting
the efforts of WLU in its partnership with other educational
institutions and organizations that show an interest
in this field.
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