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  • "If You Don't Measure It, You Can't Manage It.": August 2014 1

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    Er Suhail Manjardekar
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    This document discusses key aspects of logistics performance measurement. It outlines objectives to monitor, control, direct employees, and improve shareholder value through metrics. Various types of performance are related to productivity, financial, quality, and velocity metrics. Specific metrics are provided for productivity like units shipped per employee, equipment downtime, and output over consumption. Financial metrics include total logistics cost and return on investment. Quality metrics involve accuracy, damage frequency, returns, and information accuracy. Velocity refers to speed of activities like order processing and fulfillment.

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    Final supply chain

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    This document discusses key aspects of logistics performance measurement. It outlines objectives to monitor, control, direct employees, and improve shareholder value through metrics. Various types of performance are related to productivity, financial, quality, and velocity metrics. Specific metrics are provided for productivity like units shipped per employee, equipment downtime, and output over consumption. Financial metrics include total logistics cost and return on investment. Quality metrics involve accuracy, damage frequency, returns, and information accuracy. Velocity refers to speed of activities like order processing and fulfillment.

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    8 views12 pages

    "If You Don't Measure It, You Can't Manage It.": August 2014 1

    Uploaded by

    Er Suhail Manjardekar
    This document discusses key aspects of logistics performance measurement. It outlines objectives to monitor, control, direct employees, and improve shareholder value through metrics. Various types of performance are related to productivity, financial, quality, and velocity metrics. Specific metrics are provided for productivity like units shipped per employee, equipment downtime, and output over consumption. Financial metrics include total logistics cost and return on investment. Quality metrics involve accuracy, damage frequency, returns, and information accuracy. Velocity refers to speed of activities like order processing and fulfillment.

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    © All Rights Reserved
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    Flag for inappropriate content
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    of 12

    If you dont measure it, you cant

    manage it.

    August 2014 1
    Overview
    Logistics measurement is a part of logistics
    management dealing with performance
    measurement of resources used in logistics
    management.
    Measurement system objectives
    Operational assessment
    Financial assessment


    August 2014 2
    Objective
    Monitoring system performance by
    establishment of appropriate metrics to track
    and report
    Controlling system performance by having
    appropriate standards of performance relative
    to metrics being monitored
    Directing employee focus on system
    performance through motivation and reward
    Improving shareholder value through superior
    logistics performance

    August 2014 3
    Relation
    Performance Types
    Do More > Productivity
    With Less > Financial
    Better > Quality
    Faster > Velocity
    Success > Satisfaction

    August 2014 5
    Productivity
    Labor productivity
    Units shipped per employee
    Units received per employee
    Equipment downtime

    August 2014 6
    Cnt
    Productivity is measured at the resource level,
    identifying the expected output of its
    consumption,

    Then, quantify associated outputs,
    August 2014 7
    Logistics & Supply
    Systems
    P
    r
    =
    Output
    r

    Consumption
    r

    Financial
    Cost is the most direct reflection of logistics
    performance
    Total logistics cost (Total landed cost)
    =Sum of order processing + inventory + transportation +
    warehousing and materials handling + facility network
    Cost of Logistics Resources + Cost of Holding
    Logistics Assets
    Return on investment (ROI) is critical
    measure of financial success
    Return on net worth (RONW) measures profitability of
    funds invested by owners
    Return on assets (ROA) measures profitability generated
    by managing operational assets


    August 2014 8

    August 2014 9
    Quality
    Accuracy of work activities performed
    Damage frequency is the ratio of number of
    damaged units to the total number of units
    Number of customer returns of damaged or
    defective goods
    Number of instances when information is not
    available on request
    Number of instances when inaccurate
    information is discovered

    August 2014 10
    What is takes to create a perfect purchase
    order?
    Communication Status
    Order Processing
    Product Availability
    Quantity Product
    Order Fulfillment @ DC
    Location Damage-Free
    Order Delivery
    Invoice & Collection
    Perfect Order !!!
    Order Entry
    August 2014 11
    Velocity

    August 2014 12

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