Target, Garbage Disposals, & Your Supply Chain

Target recently announced that their supply chain was part of their sales problem in 2015. And they announced that were spending $2-2.5billion to ramp up supply chain efficiencies. Now maybe your company isn’t as big as Target. I get it. But I’ve hammered on this before and I’ll do it again, when shippers try to route each shipment through a difference carrier or a different broker to pinch pennies they are creating complexity that is not good for business.

When I was 19 years old we lived in this apartment and our garbage disposal failed. My dad told our landlady that he would do the labor to replace the failed disposal if she bought the unit. He even shopped for a good one and told her what the price would be. But she balked at the price, “I don’t want to pay that much for garbage disposal!” My dad asked her why she drove the nice car that she did and not some cheap econobox. He then pointed out that the more expensive garbage disposal was the equivalent upgrade over the cheap unit that her well-equipped Accord was over some cheap econobox.

I won’t pretend to suggest that you spend $2billion annually. I won’t even suggest you spend $1million annually. But don’t think of your supply as an expense. Think of your supply chain as an asset; an asset that facilitates growth. Then invest appropriately.

Do you need a carrier/broker you can trust? Are you trusting your goods and services to the cheapest provider? Is your supply chain slowing you down?

Give Zion a call today.

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