Are Your Logistics Stuck?
Logistics has come a long way from its early days.
Logistics emerged in the pre-1980s methods. Needs were simple, and cost-minimization was the key. Managers needn’t be’t concerned with efficiencies. Logistics was simply as a necessary cost. The transportation industry was highly regulated and prices didn’t vary much among suppliers. Logistics planning was a major factor in military circles but not considered much in the civilian environment.
From the 1980s until the early 2000s, forward-thinking companies operated in a new way – efficiencies became meaningful and avoidance of errors rather than just correcting them after they occurred became important. Philosophies such as Total Quality Management or Six Sigma became popular. Technology became important as a way of managing logistics needs. The goal was to build good systems.
Today, good is no longer enough.
We’ve entered yet another phase and, if your company isn’t there, it should seek to be if it wants to thrive into the future. Today’s supply-chain management, requires the most modern technology, and the ability to translate the impact of technology into action. Companies like Walmart and Dell are examples of the early practitioners of technology-driven, supply-chain management. Make sure you are working with logistic vendors who understand these modern methods and practice them to your advantage.