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LOGISTICS SPEND MANAGEMENT: SAVINGS OPPORTUNITIES IN THE SUPPLY CHAIN

LOGISTICS SPEND MANAGEMENT: SAVINGS OPPORTUNITIES IN THE SUPPLY CHAIN

Because transportation operates in the chaos of the real world, it’s subject to more unpredictability than other business processes. Carriers must operate in the realm of ocean storms, blizzards, and other natural hazards, along with operational errors or mechanical or infrastructure failures (infrastructure variability can account for half of variability in transport costs). Market unpredictability further aggravates the chaos – demand may increase beyond carrier capacity or, worse, demand may suddenly evaporate, leaving carrier vehicles and warehouses filled with “dead” stock

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