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Success Today Is About Preventing Problems Before They Happen

Sunday, February 26, 2012

In past times distribution companies viewed their logistics functions as an expense that needed close watch in an effort to keep the costs down. Walmart’s, among others’, huge successes made this concept obsolete years ago, yet too many businesses still fall prey to this belief.

Supply chain management can make or break a company, depending on how it is implemented.

Forward-looking managers understand this and have increased the importance of this to much higher levels. Neglecting to properly manage this function leads to needless expenses and continual frustrating challenges as items needed are either not available on time or are overstocked and taking up precious space.

Sophisticated technology enables you to be sure that what you need is where you need it, at the time it is needed. Done right this can give companies a tremendous advantage in controlling costs and enhancing productivity. Done ineffectively, it can clog your systems down putting you at a cost disadvantage.

These systems, however, only work when they are used. It is critical that distribution is in the hands of companies that effectively use this type of technology.

An old nursery rhyme (author unknown) goes:

For want of a nail, the horseshoe was lost,

For want of the horseshoe, the horse was lost,

For want of the horse, the rider was lost,

For want of the rider, the battle was lost,

For want of the battle, the kingdom was lost,

And all for the want of a nail!

You don’t want to be in want of that nail when you need it.

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