GREATER QUANTITY DELIVERIES?

21st April 2011, Page 13

21st April 2011

Page 13

Page 13, 21st April 2011 — GREATER QUANTITY DELIVERIES?

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There could be a far greater impact on the 40-year trend of just-in-time deliveries and lean production processes.

Increased fuel costs could mean that there has to be an adjustment of vehicle size and payload. Minimum quantity deliveries will increase. Suppliers will only deliver in quantities of 10 rather than five, 100 rather than 50 and so on. In turn, this could lead to a need for the acceptance of greater quantity deliveries and an acceptance of larger stockholdings, increasing inventory levels and the financial tie-up that goes with them.

This could mean the need for management decisions on a trade-off between increased transport costs and increased stockholding costs.