After the cuts. Labour productivity is measured by increasing output without increasing labour or maintaining output with reduced labour. The second option means cutting the headcount, either done very quietly or with big announcements. In late 2011 a new State government was elected in Victoria, Australia. A part of its election policy was to ‘reduce waste’ in government services. If … Read More
Retail buying can be high cost
Grey imports. A business today is most likely to make its profits from how well it purchases goods and services, rather than its selling margins. This is especially true in retailing because competition keeps retail prices in check. It is retail buyers who purchase goods for resale through their employer’s physical and on-line outlets. All to often their measurement of … Read More
Is Africa on your logistics horizon?
Know your business opportunities. Being a logistician is different from working in logistics. To be a logistician requires more than knowing how to do the planning and operational roles; you must know why they are done in your organisation – that is, the role they play in the strategy of your business. The business strategy must not only manage … Read More
Playing the budget game
Year end spend. Who would think that in 2013, the budget game would still be played; but it is and in large multi-national companies, such as one that I was referred to this week. One part of the game is that a division has funds allocated to it for capital expenditure (capex). If it does not spend all the money … Read More
A low cost service part is important
Failure of logistics. I currently have an exercise machine that is idle because the importer does not have a spring in stock – the sale price of the part is $5! So, I am continuing my (mostly bad) experiences with customer service and service parts. Here is an example of a supplier that considers a low cost part not to … Read More