Problems with fragmented logistics
Production wanted:
• high stocks of raw materials and work in progress to safeguard operations.
• a narrow range of finished goods to give long production runs.
• locations near to suppliers so that they could get raw materials quickly.
• stable production to give efficient operations.
• emphasis on the efficient movement of materials through operations.
• realistic sales forecasts that allowed efficient planning.
Problems with fragmented logistics
Finance wanted:
• low stocks everywhere.
• few locations to give economies of scale and minimise overall costs.
• large batch sizes to reduce unit costs.
• make-to-order operations.
• pessimistic sales forecasts that discouraged underused facilities.