Read the following articles:
Chan, Felix T. S., Chan, H. K., Lau, Henry C. W., & Ip, Ralph W. L. (2006), An AHP approach in benchmarking logistics performance of the postal industry,Benchmarking, Bradford 2006, Vol. 13, Iss. 6, pg 636.
Anonymous, (2008 Dec) Time to take stock of the supply chain, Logistics Manager, London: p. 34.
Many practices can continue almost as a habit without anyone actually sitting down and thrashing out the rationale for each process or operation. DHL understands that its success and that of its clients are intrinsically linked to efficiency and effectiveness of operational processes. Sharing the value delivered through these improvements between the partners is a key enabler in driving out cost. “Within the retail and consumer group at DHL Exel Supply Chain, we’ve already held almost 100 Process Improvement/DMAIC workshops this year, which have contributed to continuous improvements and identified effectiveness equating to pound 4m.”
Another tactic for cutting supply chain costs is to look at the whole value chain—physical flows, information, financial flows, systems, business structure/silos, culture, etc. “We offer our customers these as ‘Value Chain Assessments’ (VCA), where a customer may have a broad question—where is the risk in my supply chain? Where are my major costs and how can I impact them? Answering these questions is often easier said than done as many in-company logistics or supply chain managers lack visibility beyond their own supply chain operations. We can fill in the gaps in the picture—especially with today’s highly complex and extended retail supply chains. With a wide range of clients, 3PLs can provide benchmarking and information on best practice drawn from a range of industries, as well as practical deliverable solutions. Our VCA methodology challenges our customers to embrace change—but it also challenges our own teams to do likewise. Success is not in the delivery of VCA report—it’s in being a catalyst to deliver benefits to our customers.”
In an essay of 3–4 pages, answer the following questions:
- Explain why a two-stage benchmarking methodology that utilizes performance evaluation metrics followed by continuous improvement metrics could be a useful tool for achieving a competitive advantage.
- Discuss why the inclusion of the second phase, related to continuous improvement, represents a step forward from traditional benchmarking approaches.
- Evaluate the general adequacy of the major performance criteria used in the AHP article for assessing logistics applied to other types of organizations. Feel free to suggest additions or modifications in the performance criteria if you believe there are inadequacies in the current criteria.
- Describe the role a 3PL could play in implementing an effective benchmarking approach.
Module 3 – SLP
BENCHMARKING LOGISTICS PERFORMANCE
The Session Long Project (SLP) requires writing an essay on a contemporary logistics topic facing your organization. As noted in the instructions for the Module 1 SLP page, the SLP consists of two activities: (1) an assessment phase that asks you to explain and assess how the module topic applies to your Case study organization’s logistics operations, and (2) an improvement phase that asks you how the organization might better adjust logistics operations to respond to the module topic. Whenever possible, integrate information from previous courses along with providing examples based on your own experiences to illustrate and support the points discussed in the essay.
For the Module 3 SLP, write a 1- to 2-page essay addressing the following:
Activity 1 (Assessment Phase)
Describe and assess how benchmarking is used to evaluate the performance of the logistics function within your organization.
Activity 2 (Improvement Phase)
Explore how your organization might enhance logistics operations by incorporating greater use of benchmarking and performance metrics.