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Before deregulation of freight, much of what we now call logistics or supply chain management was handled by traffic managers. Part of their skill was to cut costs through clever interpretation of published prices.
Most traffic managers had a transactional approach to business decisions. They justified their existence by the ability to cut costs. Even today, many people feel that the prime function of logistics management is cost control.
A few recognize that creative logistics management will identify value-added services that provide a competitive advantage. The field is full of success stories about managers who use warehousing and other services in an innovative fashion.
Those who consider logistics as primarily an exercising beating down prices are missing the boat! |
