Why cutting spending on your supply chain will cost you more money

© Daniel L. Balogh

Last month, UK budget retail firm Poundstretcher was fined £1m because of the “chaotic” working conditions in its warehouses.

Items were stored badly across the warehouse, something likely generated from years of neglect and a short-term savings approach to warehouse work.

If you spend less money on workplace training for warehouse staff; less money on pay to incentivise your staff; less money on research into more efficient practices; less money on better storage equipment; or even less money on warehouse inspections, you can ...