The Elegance of the Costco Supply Chain!

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To begin I must admit that Costco is one of my favourite stores. I started thinking about the Costco Supply Chain.

Stereotypically I almost always buy more than I intended given the unique things that you find in their aisles. And the standard items are invariably great deals, even if the quantities are larger than you will find in other stores.

When you consider the physical layout of the store you are really walking through a warehouse. High ceilings, rows and rows of pallet racking, and concrete floors.

At its core the Costco business structure is a great example of a lot of Supply Chain principles implemented with great efficiency.

What is it that makes Costco’s Supply Chain so effective?

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