With increasing cost trends, companies can employ benchmarking and best practices to improve processes and reduce costs -- leading to profitable growth -- as they learn to deal with uncertainty.
Raleigh, NC (Vocus/PRWEB) February 10, 2011
In these uncertain times, use of key supply chain metrics, such as “perfect order,” are on the rise, according to the Tompkins Supply Chain Consortium’s recent report, “Supply Chain Core Benchmarks: Understanding Key Metrics.”
“Now is the time for companies to benchmark key metrics and get back on track to profitable growth,” says Bruce Tompkins, Executive Director of the Tompkins Supply Chain Consortium and author of the report. “With increasing cost trends, companies can employ benchmarking and best practices to improve processes and reduce costs -- leading to profitable growth -- as they learn to deal with uncertainty.”
Results from the survey show that some companies are focused on significantly reducing transportation cost and improving customer service by increasing the number of distribution operations. At the same time, other companies are developing better strategies to strengthen DC productivity.
In general, the report reveals that DC cost as a percentage of revenue is trending downward, compared to the previous year, indicating that improvement activities directed at cost reduction in the supply chain have been effective.
Likewise, companies appear to be communicating more effectively with their vendors. Compared to previous years, more organizations have employed the “perfect order” metric with vendors.
Other major findings include:
- Many companies are seeing less than truckload (LTL) claims response as an area for considerable improvement. Currently LTL claims response averages 60 days, with an average goal of 45 days.
- Respondents who are taking the initiative to benchmark and research ocean provider rates are seeing a decrease in their ocean rates.
- Over the last several years, there has been a gradual trend of increasing order accuracy in DCs.
- Value-added services (VAS) in DCs are on the rise, not only in volume, but also in the types of services being offered. VAS are required on 10% of orders, but the percentage can reach as high as 20-30%.
View the “Supply Chain Core Benchmarks Report” to see how your company matches up to others in the same industry, using the worksheet in the report as a guide.
The core benchmark metrics examined throughout the report include: financial, supply chain planning, sourcing, transportation, distribution, manufacturing, and technology benchmarks.
Visit the website to learn more about the Tompkins Supply Chain Consortium. The Consortium has a LinkedIn group and Xing group for qualified companies that are interested in staying current on the latest in supply chain benchmarking and best practices.
About Tompkins Supply Chain Consortium
Tompkins Supply Chain Consortium is the premier source for supply chain benchmarking and best practices knowledge. With more than 500 participating retail, manufacturing and wholesale/distribution companies, the Consortium sponsors a comprehensive repository of 17,000-plus benchmarks complemented by search capabilities, online analysis tools, topic forums and peer networking for supply chain executives and practitioners. The Consortium is led by the needs of its membership and an Advisory Board that includes executives from Campbell Soup Company, Ingram Micro, Kraft Foods, Limited Brands, Miller-Coors, The Coca-Cola Company and Target. To learn more about how your company can become a member of the Supply Chain Consortium, contact John Foley, 919-855-5461 or visit http://www.supplychainconsortium.com/about_us.asp.
MEDIA CONTACT: Keri McManus, 919-855-5516