Education and labour skills are essential for a fully functioning logistics and supply management

1100 WordsApr 23, 20195 Pages
Education and labour skills are essential for a fully functioning logistics and supply management system. In Southern Africa there is a lack of education and skills within the logistics system, which means unskilled labour and less effectiveness and efficiency. Education is the single most important aspect in order for a country to achieve success and wealth, the more educated people are, the more people can make intelligent and effective decisions about the economy and the logistics and supply chain management functions. Southern Africa does not have a strong education system in comparison to the global market in which Southern Africa compete in, which limits its full potential that it has to be a functioning logistic powerhouse which…show more content…
Another factor of logistics is inventory and inventory management. This field in logistics involves storing of the company’s goods, a lack of education and skilled labour could harm the inventory process by not being efficient enough or not knowing how the technological side of inventory management works, this could increase the chances off ‘mix-ups’ or mishaps and therefore a loss of sales or even the loss of customers. Unskilled labour has been a problem for many companies, unskilled labour consist of people who get paid a very low wage for the work that they do which doesn’t consist of any skill nor do you need an education. This is a problem for logistics because in the logistics process, there are many unskilled labour forces involved which means companies have to manage and guide the unskilled labour or else things could go horribly wrong and the organisation could be placed in a major deficit. The other main problem is that the skilled people who have studied in university have left the country, which leaves Southern Africa without the correct amount of skilled labour to take on the main business operations in order to achieve what the organisation should. Education and unskilled labour affect the economic growth and development of Southern Africa by causing many problems within the actual supply chain, which could lead to an increase in logistics costs, an increase in the costs of logistics within Southern Africa make Southern Africa

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