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What role should logistics providers play in supply chain performance and benchmarking?

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Glyn Lowe/Flickr

Visibility of the potential value locked in the current environment is a key driver in a supply network transformation and is being provided by  today through cloud-based network platforms. The idea is to provide departmental workbenches which show not only the departmental performance as we see with most systems, but also display the effect of dependencies and actions taken in other departments or across customers or trading partners. Because of the end-to-end ubiquity of logistics in the supply chain, logistics service providers (LSPs) are in a unique position to provide these types of services.

At higher levels in an organization these workbench analytics can aggregate to show performance measurement based on annual goals, market outcomes, customer service levels, revenue performance, price performance, cost targets, etc., creating for the first time a set of measurements that are both operational and financial in nature, that aggregate from the boiler to the board room, and that can map into the chart of accounts as defined in the enterprise financial system.

Daily performance visibility and collaboration to discuss performance related to supply network outcomes and enterprise operating metrics must become part of the fabric and rhythm of running a successful operation. Most enterprises will find that rather than creating a burden on their ‘silo’ based metrics, improvement in cross functional integration across trading partners will contribute to improvements in customer satisfaction scores, operating indicators, and overall employee satisfaction. Strong culture flows from thoughtful organizational design and measurement.

Performance and operating measurement visibility enabled by a platform which allows employees to take action to resolve related issues provides the foundation for continual employee participation and feedback. This capability will empower leadership, employees, and their trading partners to work toward achieving enterprise goals.

In future posts, I’m going to continue to discuss some of the opportunities that LSPs have to add more value to their customers. If you’re impatient however, I suggest you read the new whitepaper “8 Opportunities for Today’s Logistics Providers“.

Gene Trousil