How to Benchmark Your Supply Chain Performance
Determining the return on investment (ROI) of transportation is directly connected to how you monitor and measure your entire supply chain, end to end. One of the ways to improve your ROI is to first understand how you are performing. This can be accomplished by using your results and measurements to benchmark your supply chain against industry peers. By comparing yourself to top performing supply chains, using common measurements and metrics, you can effectively map out a transportation strategy to support your end goals and drive more value from the supply chain overall.
Analysts have used industry benchmarks for years, but beware of benchmarks based on averages only. Averages are fine for baseball, but when it comes to transportation and supply chain, averages can distort the true performance picture. For example, averages can be influenced by regional disruptions, volume fluctuations, industry freight characteristics and behaviors of a specific shipper or carrier. Shippers need a truly holistic approach, considering multiple supply chains across multiple industries, looking at best practices and current industry conditions. So where can you get that?
To benchmark your supply chain performance, check out the LeanLogistics Transportation Benchmark Cheat Sheet. We’ll help you compare yourself to industry leaders and see whether your metrics fall in the good, better, or best transportation performance ranges. . If you don’t have a way to measure those metrics today, we’ll show you what data you’ll need and where you might find it to get started.
The LeanLogistics Transportation Benchmark Cheat Sheet covers measurements in the areas of Facility, Transportation, and Carrier Operations, so getting a handle on your end to end supply chain metrics is easy. After all your measurements are compiled, we’ll give you examples of how you can display your data for simple dashboards at the Executive, Carrier, and Planner level.
How do you measure up? Extend the conversation in the comments section or reach out to learn how to build a better supply chain together.
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