Logistics Profit Leaks
All Supply Chain and Logistics operations leak profits. It’s natural.
If you look at the ‘normal’ distribution profile of customer order sizes, for example, you’ll generally find:
- A long tail of small orders.
- A small number of very large orders.
- And the large part of the bell curve, with ‘most’ orders.
It’s the two end of the bell curve that cause the problems, because it’s here, that many of the unprofitable orders can be found.
Yes, even some of those largest orders, from your largest customers can be loss making!
Why are these Losses Hidden?
Sadly, normal reporting systems don’t report very well at a customer and product profitability levels. They tend to report aggregate figures. And so these very common losses are ‘hidden’ within the data. It’s very common to have at least 10% of your customers orders as loss makers. And I’ve seen as high as 81%. True!
So how do you know if you have a problem or not?
Our Easy Online Audit
Why not jump onto our easy 3 minute online audit and find out if you have a problem or not.
It’s over at our parent company, Logistics Bureau. Hopefully you don’t have a problem, but in the next 3 minutes you can find out for sure.
You can access it right now, on this link: https://logisticsbureau.org/ctsdawson
About Logistics Bureau
Logistics Bureau is a leading management consulting firm specializing in supply chain and logistics. Established in 1997, the company offers strategic guidance and practical solutions to businesses across various industries, including retail, manufacturing, and healthcare. With a team of seasoned experts, Logistics Bureau focuses on optimizing supply chain performance, reducing costs, and enhancing overall efficiency.
The firm provides a comprehensive range of services, such as supply chain strategy development, network optimization, inventory management, and freight management. They are also known for their innovative approach to collaborative tendering and online coaching events, which aim to educate and empower businesses to tackle complex supply chain challenges.
Logistics Bureau has a strong presence in Australia and Southeast Asia, serving clients globally with tailored solutions that align with their unique business goals. The company’s commitment to delivering measurable results has earned them a reputation for excellence in the industry. By combining deep industry knowledge with practical expertise, Logistics Bureau helps businesses navigate the complexities of modern supply chains, ensuring they achieve sustainable growth and competitive advantage.
