Logistics Managers: The New Movers & Shakers

Bobbin, May, 2000 by J. Blade Corwin, Seitchik Corwin

Logistics is becoming an increasingly important part of integrated supply chain management initiative and, as a result, apparel and retail firms are now looking to fill key executive positions in this arena. Here's a look at who fits the bill.

Webster's dictionary defines logistics as "the branch of military science having to do with moving, supplying and quartering troops." When applied to commerce, logistics refers to the moving, handling, warehousing and distribution of goods. For apparel manufacturers, these "commerce" functions are becoming an increasingly important aspect of supply chain management initiatives, which has resulted in the need to create and fill new executive positions that will blaze this frontier.

Looking at the supply chain of most apparel firms, logistics encompasses the activities that take place from the point when a garment completes the manufacturing process until it has been received and accepted by a retail customer. In the case of vertical manufacturers -- meaning apparel firms with their own retail stores, in the context of this article -- the logistics process continues until a product reaches its retail outlets.

Overall, logistics encompasses transportation; freight forwarding; customs and documentation; and warehousing and distribution. Information systems are now playing a critical part in linking these areas to create an integrated supply chain function, and computer applications now enable companies to track and manage goods every step of the way.

In the course of its executive search work, Seitchik Corwin and Seitchik has documented a change in logistics management from a fragmented function to one that is much more integrated, and executives with logistics management experience have been in growing demand since the early 1990s. As a result, many major consumer goods companies, both wholesale and retail, now have directors or vice presidents of logistics.

What are the backgrounds of these individuals and how are they compensated? To answer these questions, Seitchik Corwin and Seitchik reviewed its database and selected six top-level logistics experts from the wholesale/manufacturing end of the business and five from retail. For the sake of confidentiality, no names can be mentioned and no compensation figures will be associated with particular companies. However, by providing a range of companies as a benchmark, it's possible to determine the breadth of these executives' responsibilities and their compensation based on company size.

The Manufacturers

Six of the logistics executives profiled herein are employed with six of the following 15 wholesale (manufacturing) companies: Designer Holdings (a part of Warnaco Inc.); Warnaco Inc.; Levi Strauss & Co.; Esprit de Corps., Haggar Clothing Co., Peerless Clothing Inc., Kellwood Co., Gerber Childrenswear Inc., The Leslie Fay Company Inc.; Liz Claiborne Inc.; OshKosh B'Gosh Inc.; VF Workwear (a subsidiary of VF Corp.); Oxford Industries Inc.; Seattle Pacific Industries; and Guess? Inc.

LOGISTICS EXPERT A

Title: Vice President, Global Distribution and Logistics

Salary: $250,000 plus a 1999 bonus of $75,000 and benefits

Profile: This individual received a bachelor of science degree in electrical engineering and entered the manufacturing arena in the area of materials management. He/she eventually became director of worldwide distribution for a $7-billion telecommunications manufacturer before joining the apparel industry. Expert A has several years of experience with his/her current employer, managing distribution and logistics on a global basis.

LOGISTICS EXPERT B

Title: Senior Vice President of Distribution and Operations

Salary: $180,000 plus a 1999 bonus of $50,000 and benefits

Profile: Expert B has an undergraduate degree in economics and a master's degree in marketing. His/her first job was as a project manager for a pharmaceuticals firm. During this tenure, he/she was exposed to warehouse management systems, budgeting, costing, purchasing, sales forecasting, trafficking, etc. Expert B later moved on to become vice president and general manager of a $30-million division of another pharmaceutical business, then joined a consulting firm. His/her first exposure to the apparel industry was a three-year stint as director of logistics for a large private label apparel manufacturer. From there, Expert B became vice president of logistics for another large apparel manufacturer before assuming his/her current position as senior vice president.

LOGISTICS EXPERT C

Title: Vice President, Logistics

Salary: $210,000 plus a 1999 bonus of $35,000 and benefits

Profile: This executive has a bachelor of arts degree in business administration, a bachelor of science degree in industrial engineering and a master of business degree in management science. He/she joined a major women's wear manufacturer as an industrial engineer and rose through the ranks over the next 20 years in the following positions: senior industrial engineer; director of distribution; director of logistics and systems; assistant vice president of manufacturing; and vice president of distribution and customer service. From there, Expert C spent a year with a smaller company as vice president of distribution, and then assumed his/her current position as vice president, logistics, for one of the listed companies.