What Is Performance-Based Logistics?

The logistics performance of an enterprise refers to the logistics operation efficiency of the enterprise and the logistics performance of the operator within a certain period of operation.

Logistics performance

Right!

The logistics performance of an enterprise refers to the logistics operation efficiency of the enterprise and the logistics performance of the operator within a certain period of operation.

Chinese name

Logistics performance

Foreign name

Logistic performance

expression

The operating efficiency of the enterprise and the performance of the operator during the operating period

Applied discipline

Logistics

Logistic performance

The logistics performance of an enterprise refers to the logistics operation efficiency of the enterprise and the logistics performance of the operator within a certain period of operation.

The goal of logistics control is to track the difference between the operation plan and actual performance to identify opportunities to improve efficiency and effectiveness. Although traditional logistics measurement still has application prospects in the functional field, in today's competitive environment, one direction is getting more and more attention. This direction considers the total cost required to complete a customer order, so that cost swaps can be more effectively identified and evaluated. Logistics performance measurement is mainly divided into internal performance measurement indicators, external performance measurement indicators and performance measurement indicators. Internal performance measurement focuses on comparing activities and processes with previous activities and goals. Management information sources are often used because they are easier to understand and easier to collect.

Internal performance measurement focuses on all activities that serve customers and is necessary to improve performance, motivate and reward employees. But this is to show the efficiency of the internal process, which is not very good, especially to look at the external process effect from the customer's point of view. Therefore, external performance measures must be considered.

External elements framework

Grasp the principles of evaluation management

Enterprise logistics performance management is to enhance logistics performance by strengthening the behavior and behavior process of enterprise logistics performance, that is, the planning, organization, command, supervision and adjustment of logistics performance in the entire process of logistics operation. Enterprises must follow three principles in logistics performance management:

(1) Pursuing the unification of logistics performance and meeting logistics needs

The logistics performance of an enterprise is produced on the premise of meeting logistics needs. Logistics demand is the basis for modern enterprises to engage in logistics services, which directly determines and affects the logistics performance of modern enterprises. The logistics services of modern enterprises must be adopted to meet the needs of both parties through professional and modern logistics services to reduce costs, improve business management, establish a partnership, and achieve a "win-win" benefit.

(2) Unification of short-term logistics performance and long-term logistics performance

Companies should not only focus on recent logistics performance. Pay more attention to long-term logistics performance. The use of logistics technology equipment requires considerable resources to be invested at one time, and the effect is gradual and long-term. In addition, a long-term, professional logistics service partnership is established between modern enterprises and customers, which requires modern enterprises to organically integrate short-term and long-term logistics performance.

(3) Unification of logistics performance and social benefits

The logistics activities of modern enterprises must consider not only economic factors, but also political factors and social factors. In the logistics activities of modern enterprises, they must fully consider the impact of logistics on the environment, reduce the damage and pollution to the environment, realize the unification of logistics performance with national regulations and industrial policies, and unify the logistics performance and social benefits.

Establish a scientific evaluation system

Corporate logistics performance is a continuous and cyclical process. The end of one logistics performance and behavior is the beginning of another logistics performance and behavior. The core of enterprise logistics performance process management lies in the scientific establishment of a circular management system consisting of performance planning, performance organization, performance evaluation and performance incentives.

In order to accurately grasp the external factors affecting the logistics performance of enterprises, a scientific logistics performance evaluation system needs to be established. The logistics performance evaluation system consists of three parts: a logistics performance evaluation index system, a logistics performance evaluation organization system, and a logistics performance evaluation method system.

The logistics performance evaluation index system mainly includes logistics demand evaluation indicators, logistics resource evaluation indicators, logistics industry development evaluation indicators, and logistics policy and government management evaluation indicators.

The logistics performance evaluation organization system is mainly the scientific organization of the evaluation process, including evaluation principles, evaluation personnel, evaluation time, evaluation goals, and evaluation process control.

Adopt a reasonable evaluation method

The logistics performance evaluation method system is to use existing mathematical models such as entity-driven models to analyze the elements of logistics performance evaluation indicators and determine the ranking of the impact of each factor on logistics performance; use the non-differential network pricing basic model to perform logistics performance evaluation indicators Comparison and optimization of factors; comprehensive analysis of logistics costs and logistics performance with the help of supply chain cost simulation analysis models; or re-establishing quantitative analysis models based on the actual needs of enterprises' development of logistics performance evaluation across regions, combined with scientific qualitative analysis methods, Form a complete evaluation method system composed of multiple mathematical models. There are:

(1) Kanban Performance Kanban Evaluation Method

The performance evaluation is determined as a complete management process, and the strategic purpose of the enterprise is transformed into a method of performance evaluation in a structured manner. There are five main steps: preparation, interview, seminar, completion, improvement.

(2) Customer positioning, employee driving, data-based principle performance evaluation method

Determine the principles of each link, carry out design, quality and work improvement, human resource integration, control, ability, market.

(3) Comprehensive Balanced Scorecard Method (BSC)

Balanced scoring was created by Robert Kaplan, a well-known professor at Harvard Business School. The advantage of the balanced scoring method is that it emphasizes the close relationship between performance management and corporate strategy, and proposes a specific index framework system. Comprehensive balanced scorecard methods include: learning and growth; internal management; customer value; finance. I believe that the four elements have an internal relationship: learning and growing to solve the long-term vitality of the enterprise is the basis for improving the quality and ability of the company's internal strategic management; the company provides greater value to customers through the improvement of management capabilities; customer satisfaction leads to the enterprise Good financial benefits. I believe that financial indicators are outcome indicators, while non-financial indicators are driving indicators that determine outcome indicators. We emphasize that the determination of indicators must include financial and non-financial indicators, and emphasize the management of non-financial indicators.

(4) Benchmarking evaluation method

Identify benchmarks for logistics service performance in the industry for evaluation

(5) Evaluation method of key performance indicators

The essence of the key performance indicator evaluation method is to point out that the setting of business service performance indicators must be linked to the strategy of the enterprise. The meaning of the two key words refers to the most important problem to be solved in the strategy of an enterprise at a certain stage. Performance evaluation The management system accordingly designs management indicators for solving these problems.