Cheap logistics work for internal inventory transfers where delays cost little, but shipping to customers demands speed or you lose sales and face penalties. Define what service level actually means for your business before choosing the cheapest option.
This is what being cheap actually costs us. Yeah, I think, you know, yeah, I think building on what Mohammed is saying, you know, I think it all boils down to when you say missing service level, what does that service level equal to you? If service level, missing service level is not significantly impacted or appreciated or costing the business a lot, then probably you might continue operating with the cheaper alternative. But of course, if the opposite, then definitely you cannot afford operating with this low cost. So it all boils down because, look, the way I see it is that the service level, if I am replenishing from one location of mine to another location, and I have high inventory coverage on the receiving side, 1-week delay constantly or 2 weeks delay may not have— it's a service level issue by the book, but may not have a significant impact as I'm leveraging or enjoying the low rate. If I'm shipping to a customer where there is a commercial penalty or loss of potential opportunity associated with that, that is a completely— so the word service level, I would say like we need to go underneath. What does service level mean to you?
