Directory Search on :   general logistics systems

Logistics: What If the Very Foundation is Built on Sand?

One authoritative definition of Logistics uses the concepts of "efficient, cost effective flow and storage of raw materials, in-process inventory, finished goods and and related information," ..." and "...point of origin to point of consumption..."

It's a solid definition. And that's a huge span, of course. Now imagine, just for a moment, that measurements derived from the concept of standard cost accounting suddenly and magically proved to be utterly invalid for operational decision making. So that "cost per piece" is meaningless. So is "product margin." And what about the concept of "efficient?" Interestingly enough ... it wouldn't be imagination. Scary, eh! Of course, there has to be proof before an alternative can be proposed ... but it isn't even difficult to prove!