Slack. It's not a bad word
Tuesday, April 20, 2010 at 10:49 I've been meaning for a while to write about the lack of slack in modern, highly-efficient distribution systems. It's a foregone conclusion, really: almost any business looking to optimise its distribution network will pare it to the bone in order to minimise capital and staff costs. What's the point of having machinery and people sitting around, doing nothing, when you can operate at 99% capacity all the time?
The mantras of just-in-time, production-on-demand, and zero inventory make firms completely reliant on highly complex integrated distribution systems. Usually, when the distribution systems hit a snag, it's easy to change suppliers. But when the entire system fails, well, what then? David Wighton, Business Editor at the Times, writes today:
One lesson we learn from Eyjafjallajökull is about the rigidity of modern integrated transport networks. Freight companies focus their operations by creating huge logistical hubs — DHL uses East Midlands and FedEx operates out of Paris Charles de Gaulle. Hugely efficient until ... a volcano erupts.

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