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2263038
Measuring and Managing Logistics Performance
Description
Mind Map on Measuring and Managing Logistics Performance, created by JORGE SERRANO on 13/03/2015.
Mind Map by
JORGE SERRANO
, updated more than 1 year ago
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Created by
JORGE SERRANO
almost 11 years ago
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Resource summary
Measuring and Managing Logistics Performance
Basic Measurement
A device known as a tachograph is fitted to a truck and is used to record the speed of truck, distance and any breaks taken by the driver.
For road transport companies, the basic operational measure could include total number of deliveries succesfully completed versus dropped deliveries.
A cotemporary viewpoint
Many 3PLs now have dedicated staff whose job it´s to record data that can be used in developement of metric.
Information as metrics and KPIs are shared at all staff levels, with partners and agents.
Driving forcea for the performance measurement
Increased of performance measurement in a logistics contact
1.Increased reliance on contract manufacturers
2.Strategic importance of LSPs tu supply chain success.
3. Adoption of manufacturing management principles
4. Impact on customer experience
5.Increased competition
6. IT Improvements
7. Empowerement practices
8.Employee motivation
Selecting best measures
Majority of measures should be focused on quantitive results base in numerical data. Is always good to add some qualitive measures to set KPIs.
https://www.youtube.com/watch?v=C2EZBzvkkLY
Benchmarking costs and other variables
Benchmarking logistics costs from one suplier to another can be complicated task as there almost no standard cost templates use different firms.
Number of metrics reports
The optimum scorecard will highlight the vital indicators needed to monitor the health of the organisations key organs.
Designing key performance indicators
Company must clear about it´s own aspirational and how performance can be measured against this.
Sources of data
IT is an area of key investment for must logistics companies.
Commonly used metrics
Set KPIs, the logistics company take into account and requirements taht it´s customer may have for specific reporting
Inventory warehouse
Receiving
Put Away
Inventory accuracy
Logistics cost performance
Total landed costs
Vendor and packaging cost, transportation charges, working capitak employed opportunity costs, costs associated with risk migration, broker fees, insurabce costs, taxes and duties, management costs and reverse logistics costs.
https://www.youtube.com/watch?v=9IoZKSMlom0
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