Lack of internal communication drives up logistics costs, says Virtualized Logistics
22 July 2011
Companies are accruing unnecessarily high costs within their
supply chains because different departments do not communicate
across functions, says Tony Leach, Solutions Director at
Virtualized Logistics, a new consultancy set up by logistics
specialists SBS Worldwide.
"Each department is so focused on its own activity and targets
that it does not consider the impact of their actions or policies
on the rest of the company can have further up or down the supply
chain," Mr Leach explains. "Some are obvious. The purchasing
department bulk-buying to achieve lower unit costs causes chaos for
the warehouse manager who is tasked with reducing inventory.
Read the full story