One plausible answer is that we've become so accustomed to instant response that it has become a decision, by default. The service is available. The cost is modest, or buried in somebody else's budget. And, in today's e-commerce world, same-day shipping has become a normal expectation. We are too busy handing someone else's urgent need to plan proper lead time into our own.
Certainly, there are circumstances where significant reductions in field inventories are made possible by overnight delivery. But, often the need for overnight response is a result of either procrastination or impatience.
In the name of customer service, companies will most likely continue to offer instant response at a low cost, or no cost, to the customer, but at an ever increasing cost to themselves and the supply chain in general. You could argue that's OK when only the few who really need it, ask for it. We are always willing to jump through hoops a few times a day. But, when it becomes the norm, then the daily workload is not only unpredictable but unplannable too.
What does it cost? Not just the premium shipping cost. Not just the extra cost to walk one order through the process. But, the cost of not being able to:
- Schedule staffing to meet a work plan;
- Level activity over an 8-hour shift;
- Spread flow over multiple shifts to reduce capital investment;
- Create efficient order batches for picking, and
- Know when the day will end.
Another unintended cost factor - most employees are prepared to work unexpected overtime every once in a while. But, when the end of every day is a mystery, it disrupts their lives, keeps them from being able to pick up their kids from school or childcare on time and their families from being able to plan on them.
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