Summary: The Iceberg Effect

The iceberg effect is seen as an illusion because people judge based on what they see from the company. They do not understand or have access to the bulk and every little detail about the operation of the business. Just the way the tip of the iceberg is seen which is a small portion, just so in business a small portion is seen on the outside and a large amount of details and other important ‘real’ business are underlying. It is like a mystery, and people on the outside have to imagine what the company operation is like.
According to Christopher, 2013, in the iceberg effect the most visible aspect of the total costs of is from purchasing, whereas below the surface of the water are all the costs that will arise as a result of the purchase decisions (2013). It’s important to expect the unseen, in icebergs, and know the impact. The Iceberg Principle is a popular business and systems

Perception has to do with the reality in it. As it relates to logistics, if stakeholders have the perception to deliver quality goods and service to their customers, in reality they should really get to know their customers and not take it for granted that all customers are the same. Managers and employees have to work to and manage stakeholder perception to make it a reality by delivering what was promise to the customers. If this does not happen then the reality is contrary to the perception. Another way to look at perception and reality in logistics, stake holder might make demands for thing certain things to happen, and to manager and employee the request is unrealistic or workload is heavy for what they are normally required to do. In reality, they may be able to accomplish average or between the assigned task, if they do not communicate, and managers do not delegate properly workers become overwhelm, consequently communicating the situation can change perception and