Logistics Management - June 2010

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Special Report: Top 50 Global 3PLs Pearson on A SPECIAL SUPPLEMENT TO LOGISTICS MANAGEMENT ing vaile r a one help rev- fit- tions cess. y ar- ans iliities, con- ndi- . nd e ld iven - d med new ies h- s. ies t- can : ith coand uces charts; - nal strategies and optimal price points; ucts, channels, and geographies. • leverage scenario-based modeling 1) to Benchmarking clarify operational beyond and industry finan- decisions petitive are gap usually assessment those that whereby they The most skillful supply chain cial boundaries perspectives; extend neither from underestimate the design room their to the distribution • improve Solid distribution product life requires cycle first store capabilities room to the (devoting board room valuable and resources decisions establishing and an asset/product accurate picture utilization; distribution and competitiveness vis-à-vis on the ment) bottom nor line. overestimate A profit-ori- their perfor- of your back—with without a an consistent adequate emphasis return on invest- true • continuously peers. The leaders assess establish and refine a comentemance approach and to thus S&OP get lulled planning into a false profit/volume tradeoffs across prod- can help make that happen. L Do you need a logistics partner that will bend over backwards for you kencogroup.com 1-800-758-3289 Warehousing & Distribution • Transportation • Value-Added Services sense of complacency. The leaders understand their true peer group and compare their distribution performance against these peers. Determining which companies are your true peers, however, can be difficult. It is not unusual to find after years of benchmarking that you’ve been comparing performance against the wrong peer group. For example, a firm in the motorvehicle sector we studied historically benchmarked its after-market distribution against the automotive industry and Solid distribution requires first establishing an accurate picture of your distribution competitiveness vis-à-vis true peers. ranked its cost-to-serve in the top 90th percentile. But was this motor vehicle firm really performing in the 90th percentile We didn’t think so. This company, like many others, was mistakenly defining its peer group largely by its overall business profile rather than by its after-market business requirements. When benchmarked against firms in other industries with similar distribution requirements—midscale apparel retailers and after-market parts firms—the company discovered that its distribution performance lagged well behind others. Rather than rely on proxies for selecting a peer group for benchmarking such as “what industry do I play in” or “who are my direct competitors” distribution leaders use segmentation metrics to identify the correct benchmark peer group. The segmentation variables should have sufficient detail to (1) capture the key operational dimensions that characterize the underlying distribution requirements and (2) align with the M LOGISTICS MANAGEMENT 25
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JUNE 2010 WWW.LOGISTICSMGMT.COM ®
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Get your daily fix of industry news
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Get your daily fix of industry news
Page 8 and 9: “At SPY OPTIC, we have to manage
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Page 12 and 13: CRST DEDICATED SERVICES | CRST VAN
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Page 26 and 27: special report 2010 State of Materi
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Page 32 and 33: transportation best practices Sharp
Page 34 and 35: Peak Oil, continued time addressing
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Page 49 and 50: ››› WHAT ‹‹‹ I NEED FRO
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Page 53 and 54: Unyson Logistics Technology Suite:
Page 55 and 56: As a matter of fact, we can. Tighte
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Page 61 and 62: Shift your thinking It’s time to
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Page 67 and 68: 3PLs: A welcome guest to the party
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Logistics Management - June 2010

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