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How to Avoid Spiraling Distribution Costs

A small, well-designed network can be more efficient than larger ones.

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How to Avoid Spiraling Distribution Costs
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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.

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