mercredi 22 décembre 2010

Topic 1 - Avoid short-term cost and focus instead on long-term service



Logistics is about the best trade-off between service and cost.

Cost-savings are a gamble on the sustainability of the quality of the logistics service.

Creating a cut-throat cost competition is a short-term strategy that will backfire when the demand exceeds the supply.

There is only so much room for a business to give its margin away.

Once the right balance in terms of margin for all involvwed in the logistics chain has been reached, logistics can in reality only deliver sustainable savings via innovations like improved collaboration and transparency. With other words by reducing risks and unexpected costs from bad processes. And by making the relationship better based on clear win-win objectives with logistics experts.

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