For many leadership teams, ballooning distribution and transportation costs are a silent peril. As companies grow, they tend to build or acquire a hodgepodge of overlapping manufacturing sites, distribution centers and warehouses around the world. The result is mounting costs that often go unnoticed. Top-performing companies know that small, well-designed distribution networks provide better service at lower cost than larger ones that are poorly designed.
Rob Ruffin is an expert vice president in Bain & Company’s Performance Improvement practice and is based in Boston.