Logistics can be defined as the commercial process of transporting goods to customers. It concerns the flow of resources between a point of origin and a destination. Resources which are managed in logistics may either be tangible or abstract items. Some of the key elements of logistics include integration of information flow, handling of materials, production, packaging, inventory, transportation, and warehousing.
Logistics and supply chain management are closely linked. The supply chain refers to the entire end-to-end process, while logistics is just one subset of all the activities involved in this process. Both logistics and supply chain management provide many benefits to the economy of Malaysia. Therefore, it is only to be expected that a logistics graduate can make significant contributions to the country’s economy.
The Logistics Industry and Malaysia’s Economy
The logistics industry plays a vital role within Malaysia’s economy. It serves as a barometer of Malaysia’s economic competitiveness. This is because it plays the role of an enabler and economic multiplier. Since Malaysia’s economy is dependent on trade and is built around exports, the importance of logistics and supply chain management is much greater in Malaysia than it is in many other countries.
In addition, many end users in Malaysia have some level of engagement with either local or international freight logistics providers. End users engage with these providers in order to improve network coverage, gain access to higher levels of service credibility, and receive integrated supply chain services.
These interactions between end users and logistic providers is further evidence of the logistics industry’s importance in Malaysia. High-quality logistics and supply chain management services keep the country’s economy moving in a positive direction by increasing the likelihood that end users will continue to make use of these important logistics services.
How the Study of Logistics Benefits Malaysia’s Economy
There are many viable reasons why a student of a higher education institution might choose to study logistics. All have clear positive effects on Malaysia’s economy.
Probably the most important reason to study logistics in Malaysia, as well as anywhere else, is the ever-increasing prevalence of e-commerce. The timely and proper delivery of products to customers is a key component of e-commerce. Such deliveries can only be adequately overseen by those skilled in logistics and supply chain management. The more products that Malaysia exports by way of e-commerce, the greater the benefits experienced by its economy.
The concepts and principles learned by a logistics student are applicable in a variety of industries. Every industry and sector relies on logistics in its own ways. For example, medical logistics prioritizes effectiveness over speed, while banks require the use of document logistics. That said, although the challenges and issues pertaining to logistics might differ from industry to industry, those who are well-versed in the fundamentals of logistics can easily solve these problems. The method of solving them is unlikely to differ too greatly between industries.
Most people who begin a career in logistics will start off as an analyst. In the field of logistics, analysts are usually tasked with the gathering and analysis of information in order to ascertain the causes of any problems and difficulties. Although the analyst’s role will likely be upgraded after gaining more experience, the skills gained while in this entry-level role will serve one well throughout one’s logistics career.
In addition, the application of these problem-solving skills makes the tasks of logistics and supply chain management much more manageable. The easier these tasks become, the greater the net positive effect on the related businesses and thus the country’s economy.
The Economic Future of Logistics in Malaysia
Any fresh graduate in Malaysia who has studied logistics and supply chain management can enter a field with an extremely bright economic future. Finding employment within it will not be difficult because of the industry’s strong economic prospects. By the end of 2022, there are expected to be a total of 554,000 logistics industry workers in the country – a steep increase from the 393,000 there were in 2016.
The logistics market of Malaysia is expected to experience a compound annual growth rate (CAGR) of 4% in the period spanning from 2017 to 2026. This growth will require the delivery of greater volumes of freight, a reduction in time spent in delivering goods across supply chains, and a reduction in delivery costs. Graduates who apply relevant logistics and supply chain management skills will therefore be in much demand because they can ensure that each of these outcomes will take place.
E-commerce is a phenomenon which, like everywhere else in the world, shows no signs of slowing down in Malaysia any time soon. The high margins and demand levels have thus encouraged logistics companies to focus on areas related to e-commerce such as last-mile delivery services and cold chain logistics. By immersing themselves in these critical areas of logistics and learning all they can about them, those who have studied logistics and supply chain management can make significant contributions to Malaysia’s economy both today and in the future.
Ranaco Education & Training Institute’s Diploma in Logistic & Supply Chain
Perhaps you’ve become interested in studying logistics and supply chain management and subsequently playing a major role in Malaysia’s economic growth and development. At Ranaco Education & Training Institute, you can do just that through our Diploma in Logistic & Supply Chain programme. It exposes students to various strategies and methods related to logistics, arming them with exactly what they need to enter this rapidly-growing industry.
Ranaco Education & Training Institute’s Diploma in Logistic & Supply Chain programme lasts for two years and six months. Covering seven semesters, the programme includes industrial training. Among the key subjects studied are international trade, warehousing management, supply chain performance management, and transportation management.
We are always ready and willing to accept anyone who is truly interested in beginning a logistics career by studying at Ranaco Education & Training Institute. We look forward to having you on board.
