Most companies have known for some time, albeit at an intuitive level, that supply chain excellence can deepen market penetration, improve sales performance, and increase end-to-end process efficiency, from supplier to customer. However, in 2003 an international research team determined that a clear and direct relationship exists between an organizations financial success and the depth and sophistication of its supply chain. Savvy companies are constantly looking for additional opportunities to make their supply chain more efficient.
One significant cost element that seems to get little attention in this process is labor. This paper will discuss the impact that labor has on the overall cost of the supply chain, and the solutions available for optimizing labors impact.