Benchmarking in Logistics Management

Benchmarking is a means to set the standards for the outer limits of the gap chart. A benchmark is typically a quantitative assessment of some aspect of performance of an enterprise.

Benchmarking is the process of gathering and sharing those assessments and developing an improvement plan of action based on the assessment. Logistics performance gap analysis can be used to compare and benchmark the performance the performance of internal and/or external organizations. It can be used for highlighting a company‘s strengths and weaknesses. Normally this is done through external and formal audit process to quantify the opportunity for improvement and to prioritize the initiatives in logistics process improvements. True world-class performers are strong in all areas.

Middle-class performers are typically strong in cost/productivity and weak in service indicators, or weak in cost/productivity and strong in service indicators (service-oriented). No-class performers, weak in all areas, may not be in business much longer
Logistical performance should be measured across the total supply chain. It is not enough that only selected parts of processes are monitored and controlled. The fact is that an end customer is only interested in total performance of processes.

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