Monday, April 16, 2012

Marking Your Post

To improve your logistics performance, benchmark it.

As the noted philosopher Yogi Berra once said, “If you don’t know where you are going, you’ll probably end up someplace else.”

To get your business where you want it to go, it’s vital to know where you are starting from. The tool we use to help make that determination is called Benchmarking.

Studies consistently show that companies with “best in class” logistics performance spend only about half as much as the median in a given industry to move their goods. Understanding how your firm stacks up on this continuum is a vital first step to achieving a best in class supply chain, and all the competitive advantages that confers.

A benchmarking study of all your logistics-related costs and service parameters including transportation, warehousing, inventory, and order-to-cash cycle, will provide direction on where you need to focus your attention to maximize efficiency and improve the performance of your supply chain. The study will also highlight the things you’re doing right. If you’re a TOTALogistix client, we already have a good deal of the information we need to get started.

As an executive with strategic responsibility, wouldn’t you like to have fact-based intelligence on how you’re doing versus the competition? Benchmark your logistics performance, and inevitably, you’re going to improve it.

Kirk Shearer

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