Peter Drucker

Peter Drucker was an Austrian-American management consultant and author who in 1962 called physical distribution 'the economy's dark continent', urging executives to manage it as a source of cost savings.

1909–2005 Management thinker

What they did and why it matters

Drucker's 1962 essay pushed executives to see distribution as a major, poorly understood cost, which helped launch logistics as a management discipline. He argued that the activities after a product leaves the factory, including warehousing, transport, and inventory, consumed a large share of the price of goods yet received little management attention. The essay is often cited as a starting point for physical distribution and later supply chain management. Brands that track fulfillment cost as a percent of revenue or cost to serve by channel are applying his insight that these costs are worth measuring and managing.

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