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MBA in Logistics Management: Prospects & Career Options

May 18, 2016 11:17 IST
    MBA in Logistics Management: Prospects & Career Options
    MBA in Logistics Management: Prospects & Career Options

    Time has presented numerous opportunities in all the industries of the world, so why should logistics stay behind?

    Even after the wavering global economic environment, the logistics market has held its ground by successfully sailing through the turbulence of economic crises. In India, over the past 10 years, the logistics has witnessed an incessant evolution with the country’s development and population.

    And with the tic-toc of clocks, this industry echoes only one motto,.


    What’s more, the logistics aim at expanding over the increasing numbers of inhabitants in the urban areas of India. For that, they highly require people who can make the right strategic decisions. So, the million dollar question is, do you have that strategic mind? And if you do, do you have the platform where you can apply it?

    That’s where MBA in Logistics Management comes in the picture, as a specialized program that will give the right shape to your strategies along with a platform to the logistics industry. The purpose of this comprehensive article is to provide you with knowledge about this unique, fantabulous course and clear all your doubts pertaining to it. You will find here the following topics:

    1. An Introduction to Logistics Management
    2. Rationale for choosing a career in Logistics Management
    3. Eligibility criteria for pursuing MBA in Logistics Management
    4. Syllabus taught in Logistics Management
    5. Career Options/Opportunities after Logistics Management
    6. Pay Packages offered to Logistics Management
    7. List of Top/Best Colleges to Logistics Management
    8. List of Top Recruiters that hire Logistics Management

    What is MBA in Logistics Management?

    A mixture of education, theories, training and practice with a tinge of management and leadership in the logistics-specific environment is what makes the program of MBA in Logistics Management.

    It will basically equip you with competencies to make effective decisions about moving the right products towards the right customers at the right time. Integrating yourself with this educational program will train you into becoming influential leaders in this evolving sector.

    You will get to know about every wheel and gear of logistics for example, materials management, flow of funds, transportation, international trade and even purchasing. Even more, the logistics management is segregated into the following:

    Why MBA in Logistics Management?

    Logistics in India has seen an exponential augmentation in its services since the last decade. From traditional processes to integrated and value-added services, the focus has been on acquiring higher efficiency for meeting customer demands and satisfaction. The below figure depicts the services of this sector.

    Source: NSDC (National Skill Development Corporation), where VAS is value added service and FFW is freight forwarding

    Figure: Logistics market overview

    With the soon-to-be implementation of GST, the fast-growing industry of logistics is expected to show an expansion of 12.17% by 2020 (in terms of CAGR). Also, the e-commerce, manufacturing and retail sector have shown immense growth, thus fuelling the industry of logistics. To further lead this sector, India expends 14.4% of its GDP on all the departments of logistics. The gradual increase of this industry and its evolution over the time can be seen in the below figure.

    Source: KPMG in India Analysis

    Figure: Evolution of Logistics

    The logistics industry expands out to offer various services pertaining to transportation (via road, railways and airways), storage, distribution and allied services through warehousing, container depot, and freight forwarding etc. The expansion of this industry is witnessed to be 1.5 to 2 times over the GDP of India (which is spectacularly amazing, given the instability of the global economy). In the last five years, this acceleration is found to be at 15%, where the highest growth is believed to be in the supply chain department.  

     

     

     

     

     

     

     

     

     

     

     

     

    Source: CMIE, Industry, MOSL

    Figure: Growth of the logistics sector in India

    It is anticipated that the logistics will boom with new opportunities with 60% of India’s population concentrating to only 25 clusters of urban areas, till 2030. Not only is the Indian logistics market expanding within the nation but outside the international borders as well. The export and import operations of this sector have bounded to 2 times the GDP growth rate.

    Source: Industry, MOSL

    Figure: Logistics import and export

    The warehousing department of the logistics is projected to grow at 9% CAGR, requiring an addition of 520 million square feet of area and the freight forwarding is anticipated at a growth rate of 12% CAGR till 2020. With GST implementation, this rate is further expected to increase.

    And over the course of few more years, even the e-commerce market will witness an upsurge of 25-30% CAGR. The worth of e-commerce sector in 2015 will be approximately $220 million (Bank of America Merrill Lynch, 2015)

    Source: Knight Frank, MOSL

    Figure: Warehousing demand

    When looking at the container volume of the Indian logistics market, by the financial year 20, the containerization is projected to increase by 2 times. Its immense growth over the FY10 till FY20 is anticipated in the below graph

    Source: IPA, Industry, MOSL

    Figure: India’s major port container volume

    The current Indian logistics industry is the backbone of multiple departments such as retail, pharmaceuticals, etc. and has a worth of $300 billion (pointed out by the logistics market in India).

    However, due to the expected shift of the population in the Indian urban areas, the current infrastructure is rendered inadequate to meet growth aspirations. It encounters ample amount of challenges extending from unavailability of assets to poor monitoring and supervision.

    Therefore, it is imperative to guarantee its smooth functioning with innovative ideas for meeting the demands of the people. It requires a set of specific skills to fulfil the new job roles.

    When considering the employment aspect, the transport and storage sector alone is anticipated to acquire 17.72 million people till 2022.

    Why?

    Because this industry has experienced a shortage of trained workforce and desperately needs skilled manpower, especially in the supply chain and e-commerce sectors. The demand of talented employees will reach to 20 million by 2020 in the supply chain sector. And to match the required skills, it is more than crucial to participate in the program of MBA in Logistics Management, which provides domain knowledge and practical implementation with trainings.   

    Eligibility criteria for MBA in Logistics Management

    For gaining valuable insights into the nitty-gritty operations of logistics market, you need to be a part of a professional ambience and goal setting environment. MBA in logistics management will fulfil exactly this requirement of an aspirant.

    And to enter this two-year highly specialized course, you need to have the following:

    Skills required to pursue MBA in Logistics Management

    There is a basic skill-set that if acquired, will help you walk the path of management and leadership in the logistics domain. The following corresponds to the same:

    Do you believe in the concept of Logistics leadership?

    Do you believe in maintaining Authenticity?

    Can you integrate innovative ideas with practical implementations?

    Are you an outperformer?

    Do you believe in networking?

    Are you acquainted with logistics industry trade?

    Do you have the blend of technology and managerial skills?

    MBA in Logistics Management Syllabus

    This educational program offers integral business knowledge on a broad level along with specific topics that can be applied in the logistics field. It will equip you with the following subjects:

    Subjects for MBA in Logistics Management


    Economics & Management Decisions

    Organizational Behavior

    Introduction to Logistics & Supply Chain Management

    Operations & Materials Management

    Research Methodology and App. Statistics

    Supplier Relationship Management

    Logistics Planning & Strategy

    Financial Management in Supply Chain Industry

    Global Supply Chain & Logistics Mgmt

    Business Process Re- Engineering

    Legal Issues in Logistics Sector

    Strategic Management

    Project Mgmt. & Contract Administration

    Multi Model Transportation

    Customer Relationship Management

    Total Quality Management

     

    MBA in Logistics Management: Career options

    The placement opportunities in the logistics industry are immense, fuelled by the dire need of professionals for turning its inadequacies into the desired level of adequacy. Companies with robust logistics and supply chain management that strive to hire young graduates are:

    • Logistics and shipping companies
    • Manufacturing firms
    • IT companies
    • Trading companies
    • Port trusts across the nation
    • Warehousing companies

    The general post on which the freshers are appointed is management trainee or logistics coordinator, which is then quickly followed by a staircase of multiple career prospects.

    Pay Packages for MBA in Logistics Management

    The salary of professionals in this field is dependent on their skills, college placement, experience, company’s department and luck. The following are the tentative salary’s offered to those in the fields of logistics.

    Job Profile

    Average Salary (Tentative)

    Logistics coordinator

    Rs. 300,000

    Purchasing manager

    Rs. 321,000

    Supply chain manager

    Rs. 824, 332

    Operations manager

    Rs. 1, 074,419

    Logistics and distribution manager

    Rs. 1,116,000

    Top Colleges for MBA in Logistics Management

    Following is the list of top colleges that provides specialization in Logistics Management:

    1. National Institute of Logistics and Material Management, Udaipur (Rajasthan)

    2. GITAM School of International Business, Vishakapatnam (Andhra Pradesh)

    3. Indian Institute of Materials Management, Chennai

    4. Institute of Logistics and Aviation Management (ILAM), Mumbai

    5. Institute of Logistics and Aviation Management (ILAM), Bangalore

    6. Indian Institute of Logistics, Kochi (Kerala)

    7. Amity University, Noida

    8. UPES, Uttarakhand

    9. Annamalai University, Annamalai Nagar, Chidambaram, Tamil Nadu

    10. National Institute of Business Management, Trivandrum, Kerala

    11. Mahathma Gandhi Education Foundation, Alappuzha, Kerala

    12. Indian Institute of Materials Management – Cochin, Kerala

    Top Recruiters for MBA in Logistics Management

    The top companies and recruiters that hire both freshers and experienced professionals in Logistics industry are:

    1. Blue dart

    2. FedEx

    3. HealthKart.com

    4. Agarwal Packers and Movers

    5. THT Express

    6. First flight

    7. Renualt-Nissan

    8. DTDC

    9. TCS

    10. Damco

    11. Ecopal

    12. NTC

    13. Spicejet

    14. Cognizant

    DISCLAIMER: JPL and its affiliates shall have no liability for any views, thoughts and comments expressed on this article.

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