Supply Chain Myth #5: It’s all about Trucks and Sheds
Like Myth #1, this is one myth that persists. It stems from a lack of understanding that results in people focusing on the physical elements of the supply chain, as well as the way warehousing and distribution costs appear on an organisation’s books. While this is understandable outside the workplace (no-one wants to bore their friends at a BBQ by explaining the ins-and-outs of Economic Order Quantities or Seasonal Statistical Forecast Models) from an organisation’s perspective it is neglectful at best. As a result, warehousing and transportation projects may overlook potential opportunities and sources of improvement. That is, the bigger picture – including upstream causes – may be lost in the desire to get quick cost savings.