By Reinal Lauw
Adopting plausible changes is an unavoidable opportunity for any industry or business. Having a strategic geographical location, Malaysia is a logistics hub in the Southeast Asian region. Therefore, Han Chiang University College of Communication (HCUC) conducted an online webinar on career pathways for those planning to be involved in the supply chain management or logistics industry.
The main speaker was Dr. Chandra Mohan Sinnandavar who has had 25 years of experience in the logistics industry. Alongside him, Kunasegaran Muthukumaru, the programme manager from the Faculty of Logistics and Supply Chain Management, moderated the session.
“Storage and transportation (logistics) is a subset to Supply Chain Management (SCM), and this contributes around 3.5% from the Malaysian GDP. It is close to RM50 billion a year,” began Chandra. In addition, that RM50 billion in the Gross Domestic Profit would be higher if one includes contribution from the manufacturing and production side.
“SCM or logistics involves the movement of raw materials and finished products from the productions to the consumption.
“When I say production, meaning to say all the production — it can be farming, mining — anything that you can produce right up to the consumption,” said Chandra. In general, every product is the result of the efforts of the many entities along the supply chain in the logistics network. The goal of which is to see to it that all products after going through distribution is to be made accessible for the end-user. As it is the action of “proactively managing the flow of goods, information, and cash.”
SCM, according to Chandra, is a newer term compared to logistics. “But,I would give precedence to SCM which covers a wider topic, wider area than logistics,” said he. And, in order to be in the top echelon, he emphasized one must acquire the knowledge of SCM in terms of management level.
“Suppliers, farming for instance, supply the raw materials necessary for primary production or manufacturing of goods to the manufacturers. After the raw materials have undergone its processes the manufacturers proceed to store the work-in process or finished products in warehouses and distribution centers”, explained Chandra.
Therefore, it is undeniable that the career prospects, as suggested by both Chandra and Kunasegaran, are abundant as anyone will only have to choose to get involved directly whether it is internally, or in interactions with customers, suppliers, competitors (third-party logistics), and other logistics service providers (from warehouse, to freight forwarding).
In reply to a question, Chandra elaborated on the challenges faced by freight forwarders in the supply chain or logistics business, which includes shortage of containers in certain areas due to some containers being dispatched to Europe, the United States, or to other countries and stayed abroad without any returning cargoes. Apart from that, regulatory bodies like port authorities are considered a challenge, as changes in enforcement precede established policies. Last but not least, the discontinuation of Port Klang Net.
“Types of sub-industry within logistics network include transport (air, sea, and land), warehouses, freight forwarders, port terminals, airport terminals, shipping liners and agents (vessel operators), depots (container depots or transit points or exchange points), government agencies and regulatory bodies (oversee port policies), information systems providers, other support services (administration, technical), logistics division of all goods manufacturers and producers. All of which makes for an unlimited potential for career advancement,” said Chandra.
Apart from working within the sub-industry mentioned above, it is also possible to start your own company. “Before starting-up, you have to learn from somewhere,” advised Chandra. And, that immediate mid-level position, say a supervisory, is not feasible. Whereas, location and entry level will not be as straightforward as one wishes it to be.
“You will not be seated all the time,” explained Chandra on the overall working environment in the SCM or logistics industry that allows room for more freedom and a fluid work environment.
The type of divisions within a logistics company is divided into operations; marketing or business development; customer service; accounts or finance; human resources; information system; technical (workshop); health, safety and security. Chandra also added that if one wishes to work in the accounts or human resources department, it is a requirement for one to be knowledgeable in the basics of logistics or supply chain so as to be qualified for the job.
While working as part of the SCM, always be prepared to handle extreme stress, fast decision making (because time is of the essence), have confidence, and, not surprisingly, patience. Lots and lots of patience. These are the traits the interviewer will try to look out for. As Chandra had shared from his own experience of hiring personnel, one should not be timid when replying to the interviewers.
“How to enter this job with a minor in logistics?” asked one of the participants. “Minor is a good place to start, but, if you can, major it separately. Because, SCM is a wide topic,” replied Chandra, advising all to avoid getting outmoded in the science of planning and management.
Based on Chandra’s experience in the industry, the current rate at the moment as of 2020, the salary ranges from RM 1,500- RM1,800 for Diploma graduates, and that will also depend on the location.
“Between Penang, Klang Valley, and Johor, it should be almost similar. Maybe Johor on the higher side.
“But, I’m basing on Klang Valley, Port Klang entry level,” said Chandra.
As for Bachelors the salary ranges from RM 1,800- RM 2,300, sometimes even as high as RM 3,000, while for senior management, it can vary from RM20k- RM40k. “This does not include public-listed companies. They are private limited companies,” quipped Chandra.
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