Logistics News: Annual DC Metrics Report Released at WERC Conference; Time for More Focus on Soft Metrics? | Supply Chain

Diesel Fuel Index

Region
06/17/13
U.S. 3.841
East Coast 3.835
 > New England 3.980
 > Central Atlantic 3.910
 > Lower Atlantic 3.752
Midwest 3.859
Gulf Coast 3.741
Rocky Mountain 3.848
West Coast 3.954
 California 4.022

banner

Logistics News: Annual DC Metrics Report Released at WERC Conference; Time for More Focus on Soft Metrics?

Wednesday, 06 June 2012 23:02
0 Comments
Print PDF
Logistics News: Annual DC Metrics Report Released at WERC Conference; Time for More Focus on Soft Metrics?


Key Takeaway: Core Operational and Financial Performance Converging from Top to Bottom Performers

Lancet buy generic cialis online. if you have had an organ transplant an MAO inhibitor such as furazolidone Furoxone, isocarboxazid Marplan, phenelzine Nardil, rasagiline Azilect, selegiline Eldepryl, Emsam, Zelapar, or tranylcypromine Parnate cialis online.
argaiv1823

SCDigest Editorial Staff


As always, the annual DC metrics report was unveiled at the Warehouse Education and Resources Council (WERC) conference a few weeks ago in Atlanta.

With the effort once again led by Dr. Karl

Manrodt of Georgia Southern University and Kate Vitasek of consulting firm Supply Chain Visions, the ninth year for the report as always covers a of ground both on what metrics are being used and how companies are performing, but with a bit of a twist this year. In 2012, the authors say that given the general shrinkage in the gap between top and middle level performers, it may be time to increase the focus on "soft" logistics metrics.

As usual, the survey respondents represent a broad range of both industry sectors and distribution models (e.g., piece picking versus case picking versus full pallet picking, and combinations thereof).

We are always interested in how companies consider their business and supply chain operations. This year, 38.7% said their main focus was customer service; 12% said it was cost leadership (be the low cost provider); and just 9.2% said the focus was on product/market innovation. That left the preponderance of 40.1% to say that the focus was to be "all things to all people," meaning companies are trying to be the best at cost, service and innovation. Whether this is really possible is an open question. The underlying point is that supply chain strategy and execution should be geared to support the overall business strategy.

Manrodt and Vitasek say this trend started to be first noticeable in 2007, when "all things to all people" first overtook "customer service" as the top choice for company/supply chain focus.

Top Metrics Used

One of the response areas we are most interested in each year is the most popular metrics companies use to measure distribution center performance.

There is a surprising amount of churn each year in terms of what metrics make the top 12, based on the percent of respondents reporting scores for what metrics, and the ranking within the top 12.

That said, the top 12 DC metrics for this year, and how that compared with the 2011 survey, is shown in the table below.

As can be seen, 9 of the top 12 metric for 2012 also made the 2011 list, though there was a bit of shuffling of position (even with on-time shipments staying at the number 1 spot for in both 2011 and 2012). The most dramatic change to us, and what we think must be some form of aberration, is that line fill rates dropped from third highest used metric in 2011 to number 10 this year –we believe 2011 was the more accurate position for this commonly used metric.

image

Source: WERC, Manrodt and Vitasek


(Distribution/Materials Handling Story Continues Below )

Source: http://www.scdigest.com/ONTARGET/12-06-06.php?CID=5907

  • Supply Chain Video News for June 17, 2013

    CSCMP Quick Courses Topics include demand management, financial and inventory fundamentals, materials requirements planning, physical distribution systems, and sales and operations planning, and more

  • US Logistics Infrastructure Paradox

    Of all the issues we have and do follow here at Supply Chain Digest, perhaps the most difficult one for me to really get my arms around is the state of US logistics infrastructure. And here's why: certainly complaints about the state of the US logistics infrastructure are common across many sources, notably politicians but from many other corners as well. Just type in "crumbling infrastructure" into your favorite search engine and see the massive hits that are returned. Yet, by other views US

  • Supply Chain by the Numbers for Week of June 13, 2013

    Average starting salaries for 2012 graduates of Arizona State University’s master's degree program in supply chain management, according an article last week in the Wall Street Journal, which said such degrees might be considered "the new MBA." That idea in part because at Arizona State at least, that starting salary for supply chain grads topped the average for the school's MBA graduates, which averaged $92,556. MIT's Chris Caplice told SCDigest that MIT's supply chain graduate program saw 2012 students average an amazing $115,000 in starting salaries. Back to school everyone! Source: http://www.scdigest.com/assets/newsviews/13-06-13-2.php?CID=7136

  • If You are in Supply Chain, You Made a Smart Career Choice

    We've said it many times before, but if there is a better career path right now than supply chain, we're not sure what it is, other than maybe fracking engineer. Report after report and SCDigest anecdotal conversations with supply chain recruiters indicate that after a couple tough years following the recession in 2008, demand for supply talent continues to outpace available supply. An article last week in the Wall Street Journal noted that situation, saying that "with global operations becoming more complex, companies in manufacturing, retail and

  • RFID and AIDC News on Local TV News Report Shows Just How Easy it Is to Capture RFID Credit Card Data

    - June 12, 2013 - RFID and AIDC News: Local TV News Report Shows Just How Easy it Is to Capture RFID Credit Card Data Simply Bring a Reader Near a Credit Card, Grab Holder Name, Card Number, Expiration Date and More; Are Banks Not Being Straight with Consumers? SCDigest Editorial Staff It's not exactly supply chain related, but we were interested enough in recent investigative report by Eye

  • Logistics News on A New Alternative Truck Fuel Enters the Playing Field

    - June 12, 2013 - Logistics News: A New Alternative Truck Fuel Enters the Playing Field DME is Little Known, but Volvo Trucks Announces Aggressive Plans, Pilot with Safeway SCDigest Editorial Staff There has been a flurry of activity and investment around natural gas powered trucks

  • Supply Chain Graphic of the Week on Global Energy Consumption

    We very much look forward every year to the annual BP Statistical Review of World Energy, the most comprehensive report on matters related to energy use and production that can be found anywhere. Next week, our TheGreenSupplyChain.com will do its usual full review of the 2013 report, but for this week we provide the graphic below from the report, showing energy consumption by energy source across the globe over time. Global Energy Consumption by Fuel Type

  • Green Supply Chain News on Against Mandates for Renewable Energy, Europeans Turn to US Forests

    Drax PLC, a U.K. power company, says that after it converts two more electricity plants next year to run on pellets, it should be able to sell its excess emissions credits for some $600 million

  • Supply Chain Video News for June 10, 2013

    CSCMP Quick Courses Topics include demand management, financial and inventory fundamentals, materials requirements planning, physical distribution systems, and sales and operations planning, and more

  • Supply Chain News on Are Warehouse Management System Modifications Going Away. The Question is Should They

    Supply Chain News: Are Warehouse Management System Modifications Going Away? Should They? Trend is Towards Much Fewer Mods, but They Have Not Disappeared; Stifling Innovation? SCDigest Editorial Staff There is no question that leading vendors of Warehouse Management Systems (WMS) have dramatically improved out-of-the-box capabilities, substantially reducing and sometimes even eliminating the need for modifications to the vendor's core offering. This is a big