News for July 2011

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.

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