Logistics Cost and Service - Supply Chain Consulting

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Definition Customer Service Levels The prompt and complete delivery of goods ordered Measurements Prompt = 8.4 days total order cycle time Complete Orders 91% Lines 94% Units 93% Establish, Inc./Herbert W. Davis and Company www.establishinc.com Copyright © 2004, Herbert W. Davis and Company/Establish, Inc.
Average Performance Reported STANDARD PRODUCT MEASURES FULL DATABASE 94 95 96 97 98 99 00 01 02 03 04 Total Cycle Time (Days) 7 6 9 8 7 8 8 7 8 7 8 Product Availability (% Orders) 86 87 87 87 85 85 86 87 88 85 91 (% Lines) 92 92 94 94 93 90 92 92 95 91 94 (% Cases) 96 96 93 95 95 92 90 93 93 91 93 Establish, Inc./Herbert W. Davis and Company www.establishinc.com Copyright © 2004, Herbert W. Davis and Company/Establish, Inc.
Page 1 and 2: LOGISTICS COST AND SERVICE 2004 EST
Page 3 and 4: To complete the transformation requ
Page 5 and 6: Establish, Inc./Herbert W. Davis an
Page 7 and 8: Significant Participants (1970s) Co
Page 9 and 10: Globalization of sourcing and marke
Page 11 and 12: Today - 2004 North American Status
Page 17 and 18: Key Findings - 2004 For the average
Page 19 and 20: Interpretation for the Typical Comp
Page 21 and 22: Average Company—2004 Database Cos
Page 23 and 24: Administration 5% 35% Inventory Car
Page 25 and 26: Cost as a % of Sales 12 10 8 6 4 2
Page 27 and 28: 9.0 8.5 8.0 7.5 7.0 6.5 Logistics C
Page 29 and 30: Logistics Cost Change 2004 versus 2
Page 31: Logistics Expense Change—2004/200
Page 35 and 36: Davis Insights 1. Strongest forces
Page 37 and 38: What is the most pressing issue in
Page 39 and 40: What is your most difficult custome
Page 41 and 42: What is the most recent change in y
Page 43 and 44: Two Different Strategies for Two Di
Page 45 and 46: The Balanced Strategy Know your co
Page 49: Company Name: Sample Scope: Domesti

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