Sunday, July 28, 2013

Supply Chain Silliness

Last week we had the priveledge of preparing an order of 5 scotch locks across Africa. Total value of said order 92 cents US. Total cost to DHL 5 small plastic objects, prepare invoices, shipping documents, taxes etc.. is probably on the order of several hundred dollars or  more.

Why would any sane manager approve such a ridiculous transaction?. After all you can  buy scotch locks direct from 3M. I suppose that answers can be found in the sometimes bizarre world of supply chain management and how items can be classified as surplus if they sit on the shelf too long. Apparently common sense takes a back seat if these tiny plastic objects sit in a bin for more than 6 months and the high cost of moving these items frivolously is not factored into the cost of holding those items in a specific location. Is it really too much to expect folks to step back from a supply-chain management program that they really understand and ask themselves what they are really about to do?

Apparently it is