Logistics Operations Responsiveness (LOR)

The idea of logistics operations responsiveness (LOR) examines the way well a seller responds to a buyer’s needs. This “response” can take two forms. First, LOR can be how well a retailer can customize its service offerings to the unique requirements of a buyer. Second, LOR can be how quickly a seller can respond to a sudden change in a consumer’s demand pattern.

Usually, LOR techniques will measure performance above and beyond necessary on-time delivery or order fill rates. Examples of LOR technique can be evident in Process D1 of the SCOR model under flexibility. These three parameters are: upside deliver flexibility, downside offer adaptability, and upside address resilience.

Another approach of LOR metrics is one that sends a seller’s power to customize a product or its packaging. In the aspect consumer-packaged goods (CPG) industry, manufacturers routinely offer special packaging of property through the use of co-packers. So, a parameter that could be used to address customization might be one that establishes the time it takes the dealer to offer a
new package for sale in the retailers’ stores.

LOR activities require an investment by the seller to develop a savings for the buyer. However, the two involved parties enjoy a favorable financial effect from this LOR activity.

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