Why is peeling an Onion relevant to Supply Chain management? Because it’s all about the layers. Think of each layer as a different Supply Chain function. As and you peel back the layers, you learn more about each functional cost!
It’s a great way to reveal opportunities to improve business performance.
One of the layer of cost of component is “Hidden Costs” which sometimes will be a big surprise to SCM Leader and Top Management.
Always better to ‘unhide’ the hidden costs ? If you hide costs, how can they be managed?
What I meant was, something like unexpected costs like Demurrage/Detention/Penalties etc., sometimes erupts out of total SC costs as surprise.
That’s what I mean inefficiencies of process or people.
OK, I get that. But even these ‘unexpected’ costs can be predicted. There will be a historical trail of these costs