What is logistics benchmarking?
Logistics is a fantastic business term dedicated to the transport process of produced goods from source to the final goal, such as a retailer. At each point of logistics or supplier chain, the company pays money that increases the cost of each product produced. Logistic benchmarking allows the company to check each part of this process and determine if too much. Various business activities under the microscope of logistics benchmarking may be the cost of production or supplier, fees for wholesalers, transport payments and opportunities for opportunity. Benchmarking does not necessarily use a single method for review, because there may be different situations for each other business model.
The purpose of any benchmarking process is to compare between two or more businesses or enterprises on average industry. Logistic benchmarking is a bit more specific for a certain industry, specifically for production, retail and the like. Companies in these industrial industryVíchften must send goods from source to multiple stores that sell goods to consumers. In particular, extended supply chains can add large costs to standard production costs for each item or dose of goods. Therefore, logistics benchmarking is necessary to ensure that the total costs remain low, so that the company can be competitive on the market market.
Many types of tools are available in logistics benchmarking. The company can use the cost and benefits, financial conditions, cost comparisons or other methods. For example, the cost and benefits analysis begins by outlining the costs related to the entire logistics process. In addition to each cost, the company should indicate the benefits, such as special discounts, safe storage or short transport distances. Calling other logistics or supplier chain providers to ask a recent marketThe pros can help to determine whether the current providers logistics are competitively pricing services.
Two common methods to complete logistics benchmarking is to audit a supplier chain or hire a consultant to check the company's logistics. Audit - with a team of accountants from a public accountant - can discover a large amount of information on cost and performance. It is then up to the company to decide on this information on the logistics process. When using a consultant with an external supply chain, the company tends to obtain the same data - though perhaps less formal - as with an audit. However, the consultant may be more willing to help make changes to the company's supply chain.