SELF-ASSESSMENT
Performance of SMEs Logistics
Services
Emmanuel Pertin, CDP ISEL
November 2014
Supply Chain Management
Logistics Performance Self-Assessment
“It isn’t the largest who swallow up the smallest, but the quickest who gobble up the slowest”.
Background
Supply chain management has not only become a major competitive advantage, but first
and foremost, it has now become one of the links of the organisational chain at the
service of a company’s overall performance.
Controlling inbound and outbound logistics: a major advantage when selecting suppliers
for the MRE industry.
The most efficient businesses will be able to:
• Include weather hazards, chain breakdown and break-bulking in their planning;
• Fit within the chain without generating additional risks.
Supply Chain Management
Logistics Performance Self-Assessment
The self-assessment tool
Will draw up an initial assessment of the logistics company’s arrangements.
Will measure overall strengths and weaknesses of the logistics arrangements.
Will draw up an improvement plan based on the business’s maturity level.
This guide includes standards, norms, concepts and good supply chain practices promoted by national and
international bodies such as Aslog, Global Evalog, Scor, or SCM.
Supply Chain Management
Logistics Performance Self-Assessment
The supply chain
At strategic level :
•
•
•
Definition of product and service offering;
Sizing of appropriate industrial and logistical tool;
Contract negotiation and partnerships with suppliers and customers.
At tactical level :
•
•
•
Sales forecasts;
Planning, programming and calculation of needs;
Procurement rules and stock control rules.
At operational level:
•
•
•
Customer order management;
Workflow process and hazard management;
Order fulfilment: production, distribution and invoicing.
Supply Chain Management
Logistics Performance Self-Assessment
Operational
Planning
supplies based
on sales plans
Customer
order intake
Mgt of priorities:
arbitration
Execution
Designing logistics network
Supply chain
Control
Customer
Relations Mgt
Supply
management (rules
& IS parameters, ...)
Warehousing
Control
Warehousing
capacity
simulation
Transport plans
Control
Warehousing capacity
management
Transport Master
Plan
Evaluation of
warehousing
preparation
/operations
Transportation
evaluation &
Consolidation
Transport plan
simulation
Reporting
Supply chain
measuring & cost
analysis
Measuring
operational
indicators
Monitoring the supply chain
Inventory and
factory supplies
After-sales /
Returned goods
Invoicing
entities &
customers
Logistics
management
control
Sizing and designing means
Support in defining
policies for logistics
department
Tactical
Strategic
The supply chain: mapping of inbound and outbound flows
Monitoring supply
chain events
Partner and
sub-contractor
Control
Selection,
qualification of
transport &
logistics partners
Lead tendering
and HA for
services
Service provider
monitoring
Management of Management of
anomalies
alerts
Operational performance
Monitoring
supplier orders
Operational performance:
warehousing and order picking
Operational
performance:
transportation
Invoicing : payment
recovery
Studies and
Methodology
Cross-Departmental
Project Unit
Configuration and
Sizing Studies
Studies and recast
of logistics process
Information
System Studies
Steering of IS
logistics projects
Supply Chain Management
Logistics Performance Self-Assessment
The tool, the methodology
End result: measuring the company’s performance.
Supply Chain Management
Logistics Performance Self-Assessment
The tool, the methodology
Goal: business performance measurement
•
15 themes & 123 questions will scan all internal and
external sectors and processes – those that have an impact
on supply chain streams.
•
2 types of answers : Yes/No and Never; Sometimes;
Frequently ; Always.
•
An immediate scoring of the performance on a radar type
graph against a “maturity” threshold that the company has
set.
Length of exercise 2:30.
•
Supply Chain Management
Logistics Performance Self-Assessment
The tool, the methodology
Supply Chain Management
Logistics Performance Self-Assessment
The tool, themes & objects. Illustrations.
Chapter 1 - Business Strategy & Logistics Strategy
Corporate long-term vision;
Values & objectives;
Supply chain process;
Continuous improvement.
Supply Chain Management
Logistics Performance Self-Assessment
The tool, themes & objects. Illustrations.
Chapter 3 - Information System
Accounting and financial management system;
Trade data flows;
IS interoperability.
Supply Chain Management
Logistics Performance Self-Assessment
The tool, themes & objects. Illustrations.
Chapter 5 - Demand management
Forecasting sales, production & supply;
Changes in the demand; stocks & production;
Customer relations management.
Supply Chain Management
Logistics Performance Self-Assessment
The tool, themes & objects. Illustrations.
Chapter 6 - Supply Management
Supply pre-selection & sourcing;
Anticipation, assessment of stock shortage risks;
Solutions: Push/Pull/JIT flows;
Service rates.
Supply Chain Management
Logistics Performance Self-Assessment
The tool, themes & objects. Illustrations.
Chapter 7 - Production Management
Chapter 8 - Inventory Management
Chapter 9 - Preparation & Distribution
Location of establishment– lean manufacturing, lean
supply chain;
Planning of works and resources;
Performance measurements;
Planned deliveries; IS;
Control elements; demand fluctuation; load smoothing;
meeting committments.
Supply Chain Management
Logistics Performance Self-Assessment
The tool, themes & objects. Illustrations.
Chapter 10 - Management of sales and distribution
support (SD)
Chapter 11 - Management of returned goods
Feedback from operational experience;
Participation of front-end functions;
Availability of spares, obsolescence and costs;
Claims processing;
Management and use of returned goods, reverse
logistics;
Supply Chain Execution Rate. Function costs.
Supply Chain Management
Logistics Performance Self-Assessment
The tool, themes & objects. Illustrations.
Chapter 14 - Logistics Efficiency & Responsiveness
Chapter 15 - Logistics & Environment
Lean Manufacturing tools;
Optimisation steps;
Meeting delivery deadlines;
Processes available on line;
Environmental conservation;
Environmental impacts;
Environmental assessments.
Supply Chain Management
Logistics Performance Self-Assessment
First results.
No supply chain strategy generated by the corporate strategy
Fragmented supply chain organisation
streams
Low comprehensive view of
Partially formalised logistics process, based on processing orders.
Few logistics indicators; no measurements, no possible improvement.
Supply Chain Management
Logistics Performance Self-Assessment
Next steps. Ambition.
Repeat use of tool applied to a new project;
Software development;
Implementation on a platform;
Creating a user community.
Benchmarking tool.