Fishbone Friday: Missed Distribution Budget

Missed Distribution Budget

Welcome supply chain leaders, to the ninth edition of Fishbone Friday!

If you missed last week’s edition where we discussed possible root causes for low (or decreasing) labor productivity rate, you can find it here.

Let’s get into the topic of the week: a missed distribution cost budget.

Whether it’s in reference to a shift budget, monthly budget, quarterly budget, or even a yearly budget, a missed cost target is an impactful event for any distribution operation. Of course, the more often the budget is missed, the more impactful it is. In some cases, costs can fluctuate up and down depending on labor availability, seasonal shipping volumes, customer service level expectations, and many other things, but an often-missed cost target – or one that is missed by a wide margin – is an indication of something more malicious within the operation.

So, without further ado, here are some possible root-causes for a missed distribution cost budget.

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How can a fulfillment optimization system help you consistently hit your distribution cost targets? Find out here