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What is a logistics controller?
Logistics controllers analyze and control the logistics processes of large companies. This position is particularly important in specialized logistics companies and in manufacturing companies with a high level of vertical integration, several locations or many customers – in other words: in all companies in which logistics plays a central role or has a large share in supply chain management.
In contrast to many other controlling areas, logistics controlling works in terms of content – and often also spatially – close to the operational processes. From a production plant or logistics hub, logistics controllers must know the individual steps in the logistics chain very well in order to be able to evaluate and control them. To do this, they are in close contact with those responsible for warehouses or comparable employees from the operational area.
The central challenge for logistics controllers is to define the right KPIs and plan values for the company. This applies in the broadest sense to most controlling positions, but has a different dimension in logistics. Because the logistics processes in companies differ not only in their design, but also in their importance between different companies and industries.
Calculating the planned values is quite complex, especially in the case of one-off or seldom recurring logistics routes. Because here not only the kilometers to be driven are decisive, but also the type of goods and the necessary means of transport. And the time required for loading and unloading as well as any reloading depends on this.
Once the planned values have been defined, it is the task of the logistics controller to optimize the processes and costs.
Three examples of improvements through logistics controlling:
In large warehouses, the turnover rate is an important indicator, since goods stored for a long period of time are »dead« capital. Here it is a possibility to reduce stocks for goods with slow turnover.
When making investment decisions, it is the task of the logistics controller to calculate scenarios and make recommendations. For example, if a company is planning to convert a central warehouse into a fully automated warehouse, the question could be: do the expected savings in personnel costs and the increased speed justify the investment?
If logistics controllers identify smart investments that can save the company money, they make a recommendation with a corresponding cost calculation to management. This could be, for example, a logistics hub in the shipping company or an ID scan system in retail.
Logistics controller and digitalization
The impact of digitization on the work of logistics controllers has two significant facets: On the one hand, it basically hardly affects the core of the daily job. Logistics controllers are a link between the operational area and management and are responsible for optimizing processes. Even if the processes themselves are increasingly digital and technical solutions help to make the job more efficient, the main tasks have not changed much. What changes are mainly the costs and KPIs.
On the other hand, digitization plays an extremely important role in the logistics industry as a whole: Digital solutions optimize and accelerate processes – and thus enable massive cost savings.
Two examples:
At parcel delivery companies, digital systems calculate an optimal route and ensure that the parcels are in the correct order in the truck.
2. Just a few years ago, employees would drive forklifts through warehouses and decide where to put goods. In modern warehouses, this work is now done by the computer. In many cases, forklifts are automatically controlled and position the goods or pick them up.
Completely new business models are also emerging — as in the case of Moia, for example: Here, customers book a taxi ride from A to B using their cell phones. Calculated by software, Moia combines the trips and forms carpools. This makes the transfer more efficient and more cost-effective for the individual customer.
Logistics controllers have to follow all these developments and advise their company in the digital environment.
The most important things in 5 seconds
Education: Successfully completed business studies, preferably with a focus on finance and/or controlling
Starting salary: €50,000
Top salary: €75,000
Opportunities for advancement: Head of Supply Chain Controlling, Head of Purchasing Controlling
Tasks
What does a logistics controller do?
Controlling of purchasing processes and logistic processes
Creation of budget and forecast plans
Determination of KPIs and implementation of target/actual analyses
Creation of decision templates and recommendations for action
Preparation of the monthly reporting
Participation in monthly and annual financial statements
Advising managers in the operational areas with the aim of optimizing processes and performance
Supervision of operative controlling issues for the areas of logistics and sales
Education
How to become a logistics controller
In contrast to most other controlling areas, posting records, financial statements or accounting regulations such as HGB or IFRS play a subordinate role in logistics controlling. In contrast, an understanding of operational logistics processes in companies is very important. Other common requirements for logistics controllers are:
Successfully completed business studies, preferably with a focus on finance and/or controlling
Three to five years of professional experience in controlling in a similar field
Relevant experience with controlling instruments
very good knowledge of MS Excel (pivot, Sreference)
possibly SAP knowledge
good written and spoken English knowledge
Salary
What does a logistics controller earn?
from 50.000€
up to €75,000
The gross annual salary of logistics controllers ranges between € 50,000 and €75,000. Since the logistics industry is heavily dependent on the economy, the salary level is also influenced by the economic situation. Overall, however, logistics controllers are very well paid. The increasing importance of the position due to globalization will probably continue to have a positive impact on the salary.
Requirements
What do you expect from the logistics controller?
Logistics controllers think practically and penetrate operational processes effortlessly. You work analytically and in a very solution-oriented manner and can convey the practical processes and requirements in figures.
In addition, logistics controllers are strong in communication — in different directions. Because they have to be able to meet employees from operational departments as well as the management of a company on an equal footing. In addition, logistics controlling is often operated as a matrix function. In this case, it is located decentrally in logistics, but is technically managed by central controlling. Knowledge of digital systems is also becoming increasingly important. Because operational processes in modern companies are increasingly supported by digital software.
Career
Opportunities for advancement as a logistics controller
Since the area of logistics controlling is part of supply chain controlling in most companies, the classic career path leads to the head of supply chain controlling. Logistics controlling is also closely related to purchasing controlling and has a major influence on working capital management, which is why it is also possible to become head of purchasing controlling or to move to another financial area.
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