EDITOR’S NOTE–Everybody’s familiar with the phrase. But is there a genuine application in industry for IF WE BUILD IT, THEY WILL COME? Here’s one offered by a highly respected source:
Many in industry believe that logistics is now THE important field of study. Nothing could be further from the truth.
Logistics is simply a natural process that is part of any enterprise. It is inherent in any enterprise trying to minimize cost, maximize profits, or simply optimize its performance. (I am not talking about probabilistic or statistical studies.)
Let me clarify with an example: When Dole Foods or Chiquita Banana initially found that better fruit was grown in Latin America; they initially went down there, picked the fruit, and brought it back to the U.S. for processing.
Ultimately, common-sense logistics influenced their thinking and they moved their processing plants close to the source. This not only made economic sense but also being close to the fruit allowed them to be first in picking the best.
By moving industry to the source, it will remain close the best fruit it can pick. If we break ground close to the source, I am certain that: IF WE BUILD IT, THEY WILL COME.
This article was adapted from a paper for the Institute for Work and the Economy by Moises Goldman PhD. www.workandeconomy.org
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