STUDENTS' CORNER - 103

Next objective of the logistics is Minimum Variance.

 Any disruption in the system is variance. In other words, there may be delay in deliveries; generally, variance is an occurrence in the process of delivery.

Delay may be due to so many unexpected events.  There may be delay in the flow of information from one stakeholder to another, say, the one who is the last link in the supply chain. With digitalization in the environment, unexpected disruption may happen in the transfer of information due to sudden technical snag or just slip of attention leading to wrong dispatch. 

With ever increasing vehicles on the road, traffic congestion challenges any regular transport. Even what we call acts of god can be the source of variance, an unforeseen downpour leading to power shut down for quite some time. The product might be damaged at times in transit.

Generally provision is maintained for such variances and the goods subject to delay in delivery are sent immediately with an apology to the final customer no matter how much more the transport costs.  Integrity is essential in business.

Logistics aims at minimizing such occurrences of variance.  Variance at some point may displease the customer who may not be so willing to understand the causes of delay.  His need remains with him at the top of his choices and an unfulfilled need is a constant source of vexation and of displeasure.

Inefficient internal operations also might lead to variance.  Raw materials may not reach you in time and you may not get the information of delay.  Of course, with IT becoming almost a house-hold object, such irregularities can be corrected in time.  Induction of IT expertise will go a long way in making logistics a positive enterprise with maximum effective control over logistics processes. The efficient performance of logistics sees variance reduced to the minimum, if not totally eliminated.