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Logistics is a Party |
added Dec 13th, 2011 |
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Sometimes the best way to explain a complicated process is through analogy. Recently, we found a piece written on supplychainnetwork.com by Jeff Ashcroft that does a great job of explaining supply chain management by comparing it to planning a party. Here’s how he broke down the comparison. The first step in planning a party is determining the number os guests. The supply chain equivalent is determining the volume and type of product being delt with. Next, he suggests establishing the type of party being plan or, logistically speaking, required storage and handling. The size of the party venue, be it living room or rented hall, compares directly to the size of warehouse and fleet required and support staff – waiters, bartenders and the like – relates to the number of warehouse workers and drivers required. Ashcroft goes on to compare the sound system to an operating system, refreshments and supplies to required racking and the time and duration of the party to the service level required by the client. He makes an interesting point. According to Ashcroft’s theory, much of what we do in supply chain management uses the same logic applied to things in our everyday lives. It doesn’t have to be a party plan. It can be something as simple as getting the kids to school or as complicated as economic recovery. The principles remain the same. |
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