Ch00fm-pgs-Martichenko/Goldsby
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- SECTION 2. THE LOGISTICS WASTES
| THE LOGISTICS WASTES
We have all heard the phrase “You can’t make something out of nothing.” Resources are necessary to accomplish anything great or small, but problems arise from using resources unproductively, applying the wrong resources, fail- ing to tap into necessary resources, or directing resources toward the wrong outputs. In each of these instances, waste is created. Costs are incurred, people’s time is consumed, opportunities for value creation and growth are lost, and customers are left less than satisfied. While much has been said and written about the wastes found in a manu- facturing environment, relatively little is mentioned about the wastes in logis- tics. The wastes in logistics are just as prevalent as in any other functional area of a firm, although they are not always as visible given the scope of logistics activity. In fact, it has been suggested that more than 80 percent of the work of logistics takes place outside the view of supervision, suggesting all the more that precise yet robust processes must be developed for logistics. The next section illustrates the potential wastes found in logistics. The sources of waste in logistics include: 䊏 Inventory 䊏 Transportation The Importance of Logistics and Supply Chain Management 15 䊏 Space and facilities 䊏 Time 䊏 Packaging 䊏 Administration 䊏 Knowledge We will discuss each of the wastes in the next section. As you read through each chapter, take personal account of how many of the wastes you recognize in your current business. SECTION 2. THE LOGISTICS WASTES |