Is freight cost really the problem? Understanding logistics cost overruns.

Many logistics cost overruns aren't caused by logistics. They're caused by planning decisions. Yet when freight spend spikes, the first place executives look is transportation, which is the wrong target. Consider a company that sees an opportunity to sell more of its higher-margin products. The business shifts its product mix, but the parts needed to make those products aren't available where they're needed. The result is expedited shipments and airfreight, and suddenly the logistics department has blown through its budget. But did logistics actually cause the problem, or did a business decision simply create a logistics consequence?

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