Blog #planning

Continuing with the topic of losses, it would be difficult to avoid the warehouse question. And immediately I have to make a remark. In logistics theory, a warehouse is evil. Every time the cargo stops moving, additional costs arise. In addition to the obvious price of loading-unloading and storage, hidden ones immediately appear: damage, theft, spoilage due to the wrong regime, violation of the expiration date, inventory errors, increase of lead-time and, of course, complication of administration. This is rarely considered in financial calculations. However, is the warehouse so bad?

Let’s talk about losses. Please, without fanaticism, because each company has own EF. Efficiency factor, if you remember school physics. And this factor is never 100%. But when it’s 10% only like steam engine, probably it’s pity. Especially to the business owner. But it's worth starting with numbers. More precisely about illusion behind.