Benchmark Your Way to Logistics Success

What is the most effective way to understand, control and improve the costs of your logistics operations? The simple answer is the to benchmark all operational aspects using detailed metrics and then compare these numbers to either industry standard information, or estimates of your competitors performance. Operations benchmarking is a task you can complete yourself, or have completed for you by industry experts to get optimum results. Depending on the current efficiency of your logistics operations you may have a huge savings opportunity, or for operations already in good shape, be able to make incremental improvements. Either way, benchmarking will identify the size of the significant network improvements possible, or tell you within which specific operational areas you still can make incremental improvements.
  

This benchmarking task can be completed either by yourself using either simple spreadsheets. But it is much easier and effective to use some of the more advanced tools now on the market that can provide real assistance along with a set of industry standard benchmarks to begin comparison against.

Do it Yourself with Advanced Tools

To begin with, create an accurate budget estimate by establishing benchmark standard minute values for common warehouse tasks and track them against your current work volumes.

Measures of various Key Performance Indicators

• Cost benefit analysis of adding more labour or MHE (Materials Handling Equipment)

Determine actual ROI by measuring indicators before and after projects

• Tool utilizes 72 fields of input (some of which are mandatory and optional)

• Compare ABC analysis of customers, SKU’s or product families

  

Make changes to the input with immediate update to reports embedded in the benchmarking tool.

Getting Expert Assistance with Benchmarking 

For those who want experienced assistance in conducting and analyzing the benchmarking project, experts are available do so and during the process can often bring you and your team up to speed and make you self-reliant going forward.

With this in mind SCN partners developed and utilize a unique 300-point reference check, to confirm or benchmark the efficiency of your company’s logistics efforts. The key areas of focus will include space utilization, labor efficiencies, transportation and overall throughput calculations. A detailed report of your business will be prepared based on comparisons to global best practices and measures, and how your organizations key performance indicators relate to other companies in your vertical business sector.

This analysis covers all major business disciplines including:

– Business/Commercial – Type, Sales, Profitability, Human Resources

– Systems – Inventory, tracking, order entry, ERP, TMS

– Purchasing/Production- Cycle time, Replenishment activities, Triggers

– Service Levels and Key Performance Indicators

– Warehouse – Activities and Characteristics

– Warehouse – Storage and Handling

– Transport – Courier, LTL, FTL, others

Major Benefits

On average SCN Partners find between 5 to 15% operational savings per client

Receive the benefit of global experience working directly for you, to learn more and get SCN partner assistance with Benchmarking, just ASK and we will get right back to you.

Jeff Ashcroft 

For your information, below is a listing of the sample areas of output;

– Space Utilization

– Pick Rates

– Put -away rates and Procedures

– Inventory EOQ and Purchasing Quantities

– Replenishment Activities

– Material Handling Equipment

– IT Systems and procedures

– Labor Head Count

– Throughput Analysis

– Transportation Costs

– Transportation Tracking

– Service Levels

SCN partners have extensive experience in both the operational and strategic activities of major distribution networks throughout the world. This experience has lead to improvements in all major verticals, including Retail, Grocery, Electronics Manufacturing, and 3PL market spaces.

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