Many small and mid-size companies may not have the resources in-house to effectively manage the challenges associated with logistics. Focused on their core business, they relegate supply chain management solutions to a back-room function, and fail to recognize the impact of their supply chain on revenue growth, operating expenses and capital utilization.
For the small or mid-size company, the understanding that improvements in the current supply chain will help reduce costs of goods sold, days in inventory and overall hidden operational expenses is one thing. However, there are many issues these companies face that keep them from embarking on improved supply chain management and discovering its benefits on financial performance. For some companies, the manual processes that slow down productivity also do not allow for time to focus on logistics functions.
For others, growth is the top priority; the cost of logistics is not identified and the potential for improvement is unknown. Smaller companies may not have the technology to track information or the personnel to deal with all aspects of logistics.