Annual WERC Distribution Center Metric Report Shows Leaders Continue to Expand Lead over Laggards

From SCDigest: “The Warehouse Education and Research Council (WERC) recently released its sixth annual study on distribution center performance (DC Measures 2009), and SCDigest caught up with report co-author Dr. Karl Manrodt of Georgia Southern University to discuss key findings and themes. A video of that interview can also be found here: Supply Chain Video: Dr. Karl Manrodt on Sixth Annual DC Metrics Report.

The report is based on survey data on a variety of performance metrics from nearly 700 logistics and distribution professionals. A key finding: logistics performance leaders continue to gain over the middle of the pack and the laggards.

“We break the data into quintiles [5 groups of 20% each], and then we compare the top group to the median and how they are tracking over time,” Manrodt said. “What we are finding over the past five years is that the median levels are improving, but the top performers are getting better faster than the median group.”

Manrodt has seen similar evidence in another annual study he co-authors on transportation and logistics (See What Makes a Company a “Master of Logistics?”). Together, they provide some quantitative evidence that the best are widening their performance lead, an observation many consultants have made anecdotally.

“Best-in-class companies continue to perform better,” Manrodt added. “That ought to be a clarion call to those that are not improving their metrics, because they are going to get further and further behind.” Annual WERC Distribution Center Metric Report Shows Leaders Continue to Expand Lead over Laggards

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