This decision to re-design logistics for efficiency is focused on maximizing efficiency rather than on making choices.
Yes, processes are often bulky and slow but the choice of processes depends on capacity, price, availability of resources, knowledge, incentives and the ability of companies to achieve a breakthrough. Let’s think out-of-the-box and say companies will start shipping empty refrigerators to the countries with frozen fruits or other unprocessed produce and wait for the exporters to process it to get to the consumer by adding value. Besides, that’s also the easiest shipping option – no fuel and logistics expenses, no temperature control and no freezer. I think, once the volumes start coming in, this kind of scenario can work. As of now, companies spend large sums on logistics and inventory management which accounts to 10 percent of the total company revenues or 40 percent of the sales. This is a large chunk of the company budgets to do something that’s not optimal.Logistics is one of the most valuable departments of a business and still there is a lack of focus and creativity on delivering better results.