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.
