Costs can be controversial. To some, the very word can cause the hairs on the back of their neck to stand up. To the adrenaline junkies in the logistics business, it's a cause for focused attention. Likewise at Müller – die lila Logistik, costs are for us, as a logistics service provider, the starting point to improve our clients' processes.
Many companies whose core competencies include the production of components, capital goods, or consumer goods, started out small and over decades, have become strong players within their markets. So who would want to think about logistics costs? As globalization and rapid changes in consumer behavior due to digitalization have exacerbated competitive pressure in many industries, companies can only stay at the top with the ability to constantly change. And costs become quite the risk factor.
Your company, like any other, is integrated into a supply chain that generates logistical costs at several points: in procurement, during production, and in distribution. These costs must be accepted because they are among the many transaction costs that result from your company's market participation. Someone has to carry these costs. They can't be avoided, but together, we can minimize them via continuous coordination of production and logistics processes and a little bit of creativity. We'll always be breaking new ground.
Cost pressures become an innovation driver. Pressure forces action that works. For example, lean management creates disciplines that addresses not only cost questions but the possibility of rethinking a company from the bottom-up. Is there a better way to secure a company's future?
Inform yourself on how the costs within your supply chain can decrease, how the lean management principles within the Lila Production System produce profit, and where you can reduce your personnel costs.