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.
â€œWe 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,â€ Manrodt said. â€œWhat 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.â€
Manrodt has seen similar evidence in another annual study he co-authors on transportation and logistics (See What Makes a Company a â€œMaster of Logistics?â€). Together, they provide some quantitative evidence that the best are widening their performance lead, an observation many consultants have made anecdotally.
â€œBest-in-class companies continue to perform better,â€ Manrodt added. â€œThat ought to be a clarion call to those that are not improving their metrics, because they are going to get further and further behind.â€ Annual WERC Distribution Center Metric Report Shows Leaders Continue to Expand Lead over Laggards