ABSTRACT

This chapter includes root causes for costs and the barriers that exist to addressing them. It describes two solutions for this barrier: project management basics and team building. The chapter also describes two actions to avoid confusion: promoting supply chain management (SCM) and the graduated approach and examines the divide-and-conquer approach and mechanisms for multicompany participation. Identifying and addressing root causes of costs should be an essential part of any supply chain improvement project. A start for a retail supply chain project is establishing a project infrastructure within the company using this body of knowledge. The broader supply chain mission of matching supply and demand is lost. For example, if the company is selling hot products with short life cycles, the cost-conscious supply chain manager, trying to reduce transportation cost possibly by using slower transportation means, will leave money on the table and destroy customer goodwill.