Your profit and loss account may tell you how you are doing overall but not precisely how you are performing at an operational level in comparison with competitors.
Benchmarking your logistics and supply chain is a simple but effective way of identifying how well you are performing in a specific area in order to prioritise and focus management attention where it is needed. The overall technique is to provide a comparison with either financial or operational “best practice” to ascertain and measure relative performance. Benchmarking your logistics and supply chain can be anything from a simple comparison of easily identified factors, such as transport rates, to an in depth exercise looking at how processes operate for comparison with similar operations in other organisations.
Almost anything can be benchmarked, the challenge is to find comparable operations and ensure there is a like for like comparison. In most operations, for benchmarking to be valid, it requires comparison at a detailed level. Cost per case delivered may sound straightforward but one organisation may be leasing their warehouse whilst another may charge nothing for property because it is owned. The devil is always in the detail.
Our Logistics Benchmarking Consultants commence the project by undertaking a detailed review of the activity to be benchmarked, establishing what the activity consists of, and how the benchmark is made up. The next challenge is to source benchmarks that are relevant and valid. With a lifetime of undertaking detailed operational and financial reviews we are ideally placed to source relevant data for use in a benchmarking exercise. Often this can involve comparing best practice in one industry group with the performance of a company in another.
Following the completion of a benchmarking exercise, our Logistics & Supply Chain Benchmarking Consultants can assist in identifying the underlying causes relating to any areas of poor performance and prepare necessary recovery plans.
Speak to a consultant today!