Supply Chain Metrics Development:
The goal is to ensure that logistics initiatives are tied to a company's key strategies and performance metrics.

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Key benefits include:

• Supply chain professionals are able to:
• Communicate at the executive level
• Gain executive level support
• Allows accurate, "real-world" logistics solutions that are focused on:
• Ensuring bottom-line savings
• Reducing capital requirements
• Reducing fixed and variable costs
• Increasing capital utilization
• Improving customer service

Questions answered:

• What are the key supply chain metrics critical to current business strategies or initiatives?
• With the data available, how can we create meaningful metrics?
• What activities should be scorecarded as we focus on operational performance?
• How can we engineer metrics so as to allow for an "apples-to-apples" comparison before and after significant supply chain initiatives?
• Are we achieving the full benefits of new metric information?

Testimonies:

Comparing Metrics in a New Distribution Network
A large U.S. Food and Beverage company consolidated the networks of multiple independent operating companies. CL was asked to assist this client in creating a baseline of selected metrics and to determine how to best measure transportation savings resulting from this consolidation. Data from multiple sources was statistically analyzed and validated. Strategies for addressing missing data were developed. User needs at all levels were defined (including: Executive Committee, Operating Companies, Finance, Transportation and Distribution Center Managers.) Baseline metrics were established and scorecarding processes developed to measure improvements in transportation resources, transportation miles, mode utilization, and transportation efficiencies.


Metric Identification, Data Capturing and Scorecarding for Network Rationalization Project
CL was retained to assist a large distributor of agricultural products to link metrics to organizational strategies. Having grown through acquisition, this company was using a variety of systems; operating metrics were not consistent across the organization. CL assisted in identifying the key performance metrics that would measure the success of primary business strategies – to reduce distribution costs while maintaining excellent customer service. Available data was analyzed and processes developed to measure inventory turns, carrying costs, costs of returns, operating costs as a percent of sales, shuttle costs and customer service. CL also worked with this client to help all organizational levels understand the importance and interdependency of these key performance metrics.