Sustainable Logistics

Measuring Logistics performance

http://www.ukessays.com/essays/commerce/understanding-logistics-performance-measurement-and-importance-commerce-essay.php

My part will be either.. production planning/ customer service

Performance measurement can be defined as the process of quantifying the efficiency and effectiveness of action (Neely, Mills, Platts, Gregory, Richards, 1994).

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-Logistics performance measures can be categorized into two categories such as qualitative and quantitative measures.

1-Qualitative measures include such as customer satisfaction and product quality etc., and quantitative measures include such as order-to-delivery lead time, supply chain response time, flexibility, resource utilization, delivery performance, etc.

2-Quantitative metrics of supply chain performance can be classified into two broad categories: Non-financial and financial. In fact, in the late 1880s the main emphasis was on financial measures such as return on investment (Christopher, 1992; Schermerhorn et al.,, 2000). However as the second progressed during 1980s, the world market changed and companies began to lose market share to overseas competitors who were able to provide higher-quality products with lower costs and more diversity. To re- capture the competitive edge, companies not only directed their strategic focus from low-cost production to quality, flexibility and short lead time, as non-financial measures (Bower & Hout, 1988; Rushton & Oxley, 1989; Stewart, 1995).

Integrated logistics performance:

There many ways to measure logistics performance. Most measurement teqnicues revolve around cost, productivity and service.

Cost measurement could include such items as cost per weight uint or shipment.

Productivity measurement: output compared to input. Typical inputs are *(Labour hour, numbers of employees, warehouse aisle space, amount of equipments)

Typical outputs are: (orders filed, tons shipped, loss and damage)

Service measurement: (on time delivery and...