The Five Practices Damaging Operational Performance in Today's Supply Chain Infographic offers recommendations to fix them — and remain competitive.
Logistics organisations of all sizes are facing lower profits, higher customer expectations, and increased volatility. To enhance their profitability and competitive advantage, they are seeking new and innovative ways to trim costs, be more efficient, and boost customer satisfaction.
Five common practices may be damaging your organisation's operational performance, but there are viable solutions to remain competitive in today's dynamic logistics market:
- Using only your overall business strategy to guide performance improvements. Understand how your company competes and set goals that align with the overall business strategy. A 2018 WERC survey found that 50% of respondents identified customer service as their top strategic business focus — a 25% increase from 2015.
- Measuring every single aspect of your operations. Focus on performance metrics that best align with strategic priorities to help deliver sustainable value and quality.
- Not having a dedicated effort for developing the right partner network. Establish open communication and transparency with supply chain partners — for effective collaboration and efficient issue resolution.
- Ignoring the performance of your industry peers. Optimise performance through benchmarketing — to help identify critical gaps and gain valuable insights to improve operational processes.
- Accepting good as "good enough." Track, measure, and analyse performance and improvement to stay the course, and continuously evaluate key metrics' relevance to ensure their alignment with your business strategy. The WERC survey showed that best-in-class performers maintained performance on 14 of the 34 metrics compared to only seven for major opportunity performers.