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Performance measurement is essential but used wrongly it can encourage wrong behaviours and perpetuate silo-based decision making.
Benchmarking is referred to as the process of comparing performance; it is a concise form of performance measurement which not only externally evaluates the individual performance of companies against each other; but also uses the same analysis to determine the performance of different operations within the same company.
Identifying high-performance, and best-in-class operations and analysing how these are best achieved – Benchmarking can be useful data to collate, in particular to help companies better understand how their operations compare to their competition.
Whilst Benchmarking serves as a critical performance indicator within logistics and supply chain operations, such comparisons of course need to be analysed in context. Take for example when examining performance of logistics costs, as % of sales, overall cost is perceived as the average selling price as much as by logistics costs, of which both need to be fairly assessed. Accurate Benchmarking can help a business to determine whether it best to base comparisons on a cost per unit or cost per case, basis.
You should take care to consider how all the performance measurements in the business interact to move the company towards its goals. The Supply Chain Consulting Group have successfully established effective performance measurement regimes in new and existing operations across the UK and Europe.
Building transport, inventory and location strategies around your customer service goals. Developing a logistics infrastructure that meets your business goals.
Our knowledgeable Supply Chain Consultants have built Cost-to-Serve models to allow companies to unlock hidden profit potential by understanding the costs involved in serving specific customers and products. Understanding each clients’ individual priorities and the specific complexities of each business; The SCCG team carefully utilise specific models, in order to custom-build solutions for each client.
Synonymous with Supply Chain is Inventory Optimisation, for which our Supply Chain Consultants use ‘Inventory Modelling’ to establish the correct level of stock for any given situation – balancing the need to maintain a high-level of customer service with the desire to minimise working capital.
As part of the Global Supply Chain – Import, Export and Logistics – is the part of the supply chain processes that plans, implements, and controls the efficient, effective forward and reverse flow and storage of goods, services, and related information between the point of origin and the point of consumption in order to meet customs and customer requirements.
Inventory modelling can be used to define the correct stocking policy for a large range of SKUs – for example, which SKUs should be stocked in local branches, and which should be held in one national centre.
Supply chain and Logistics Specialists highly experienced in all aspects of Supply Chain and Logistics Operations, Distribution Network Strategy, Warehousing Operations, e-commerce Logistics and Warehouse and Distribution Centre Design.
