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Topic Title: Efficiency Measurement in Logistics
Topic Summary: Support Efficiency
Created On: 05/25/2012 10:13 AM
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05/25/2012 11:59 AM
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Benny
Andrew Bentley



Hello, a question from myself..........

Are there any activities currently ongoing that include the measurement & efficiency improvement in Logistics areas that could possibly be communicated.

Really looking at what is measured, why, how etc, however all linked to efficiency.

No long winded theoretical concepts please, can got these elsewhere, really looking at real life examples please....................please do not be offended theorists out there.

Currently a major focus for us.

Ben
06/05/2012 09:25 AM
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RMField
Russell Field



Just to get started, and assuming you're including Supply Chain stuff, here are some measures which can be useful. Note that they all have "lean" equivelents.

1. Actual requirements release to planned release date (for Lean areas, this can be something like performance to takt time, for example)
2. Supplier lead time violations, both by customer and supplier; e.g.:
- Changes by customer inside supplier lead time;
- Changes by customer to released requirements (for Lean, how often do I receive now-obsolete products for which I've requested some sort of change?)
- Actual delivery vs. planned delivery (has the supplier misstated their lead times?)
3. WIP and On-Hand inventory levels
4. Orders or requirements placed over and above the original plan (can indicate in-house performance issues or supplier quality problems)

The more effective and efficient the supply chain - which includes internal operations to the extent that they generate excess, unplanned demand on the supply base - the better these metrics will be.

Hope this helps!
06/15/2012 12:04 PM
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PSIPlanner
Paul Myerson



Check out the SCOR model at the link below as most of the measurements under "Plan, Source, Make, Deliver and Return" can be tied to Lean. Similarly, these measurements can be controlled by a good S&OP (Sales & Operations Planning) process.

Also, see link for my book on "Lean Supply Chain & Logistics Management" from McGraw-Hill for other ideas.

Supply Chain Council website link

Lean SCM book Amazon link
06/18/2012 10:50 AM
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Caro
Caroline Willison



I have tried a to give your answer of your question.

It's just a suggestion from my sight.
According to my knowledge about logistics business are as follows:

1) Performance measurement is a significant thing into the logistics.
2) Qualitative and quantitative measurement are also has to be taken care.
3) Financial and non-financial measurement.
4) Result versus process measurement also has to be taken care.
08/03/2012 11:48 AM
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279591
niamh allan



There steps you can take to improve efficiency of logistics:
1. Focus on all the departments involved in order fulfillment process.
2. Make transport a customer service activity instead of cost.
3. Reduce stock to improve service.
08/06/2012 11:19 AM
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MartynOliver
Martyn Oliver



be honest and measure things from the customers' perspective.

eg - in one case, when a vendor supplied 9 items from an order of 10, the vendor gave themselves a 90% achievement. The customer gave the supplier 0% on the basis that all 10 items were required for the annual maintenance of a machine, which had to be delayed until the 10th item arrived.

Regards,
Martyn
08/28/2012 11:36 AM
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AlanMurfee
Alan Murfee



Hi Benny! If you're just beginning with logistics, I would like to suggest you to please minimize complexities by reducing your stock. This will surprisingly, augment the quality of your services. In logistics, it is always better to emphasize on quality and try to make your customer as comfortable as possible.

For example, if you are offering transport after charging costs, make sure you make it a customer friendly service and offer quotes as far as possible. Don't bother much about margins at first. It is always best to lay emphasis on garnering a good customer base at first.
08/30/2012 01:05 PM
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3744
Ronald Turkett



It is always helpful to complete a VSM on the entire value stream before making any substantial changes to it. Understanding the supply and demand connection including SIOP will set the foundations for analysis to identify the portions for improvement and the priority for action items. The costing for each step is then easier to determine.
Ron Turkett
09/27/2012 04:56 PM
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282496
packingandmovers movers



Transportation of goods from one place to another place is not a simple matter. We need a experienced labors to packing our products. After all you have to discounts for transportation. Make transportation as a customer service instead of making a profit. Quality and quantitative measurement also need to take during the transportation.
10/03/2012 01:15 PM
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AustinZhai
Weidong Zhai



Hi Paul:
I will buy your book, It's really helpful.
"Lean Supply Chain & Logistics Management"
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