Logistics Management

Improving logistics with balanced scorecard implementation is indeed possible. The scorecard is a tool that brings many advantages, especially when it is properly used.

Logistics is something no business can do without. This is because logistics is needed for effective business operations pertaining to the acquisition, the storage, the transportation, and the delivery of goods. Thus, it is important to have an effective system for logistics to ensure the overall performance of your business. With the proper implementation of an effective measurement system, considerable improvement can then be observed in the organization. Therefore, improving logistics with balanced scorecard implementation is indeed highly possible.

An efficient metrics program can bring a lot of benefits for the organization. First and foremost, the information brought about by your metrics program can be used to smoothen out decision-making activities. In any business, there just might come a time when you have to make sudden decisions pertaining to transportation and delivery of goods. With the help of a metrics program, you can actually determine if your logistics operations have what it takes to make the right decisions when faced with these sudden circumstances at hand.

What’s more, when you have an efficient balanced scorecard for your logistics operations, you can avoid dealing with shipment lags because these would not happen to begin with! The key performance indicators can easily point out the areas where operations would need improvement, especially when it pertains to shipment lags. Shipping blockages can also be pointed out, so these can be avoided as well.

Productivity would also increase with the implementation of the balanced scorecard. The KPIs can be used in detecting shipment problems even before they occur. If your balanced scorecard is very efficient and very much aligned with corporate goals and objectives, then the detection of shipment problems can be done earlier as well. The appropriate solutions for these problems can then be determined. There would also be significant reduction of human error, administrative, and support costs. Another benefit that comes with the implementation of the balanced scorecard is that there would be more coordination when it comes to the consignees, carriers, shippers, and all other aspects that are involved in logistics operations.

Measurement data is by far the most effective means in determining the proficiency of the different areas in logistics operations. Measurement data drives and influences the organization’s activities that make use of its capital. You also have to understand that logistics management goes beyond the operation of forklifts, mini-packers, conveyors, and the like. Rather, logistics management is also about managing employees and organizing their different job tasks and responsibilities in accordance with corporate goals and objectives.

With the balanced scorecard, performance management will experience significant improvement because the different tasks and processes are balanced all throughout the different logistics operations. Measurement is categorized in different areas, which include clients, employees, finance, and organizational processes. Another great thing about the balanced scorecard is that strategy cards are used. This way, the strategy of the whole organization is broken down into smaller and more detailed tasks. Initiatives can then be determined when it comes to systematic updates, strategic planning support, balanced measurement for both internal and external aspects of the organization, and developments on initiatives.

With these many benefits, improving logistics with balanced scorecard implementation is indeed highly possible. Once your organization starts using the balanced scorecard method, you will surely notice significant improvement in a short period of time.

There is some different between the transportation scorecards represented on this web-site.

• The Transportation Scorecard focuses specifically on transportation problems from the view point of transportation unit of the company or small transportation company. This scorecard provides more metrics to evaluate quality aspects of some specific transportation process. It is a low-level scorecard. Check the names of some metrics: “Frequency of damage”, “Dollar value per order”, “Orders picked per hour”.
• The Supply Chain Scorecard is a middle-level performance tool. It helps to evaluate the performance of transportation unit and how it is integrated in other business processes. As well as business processes of other companies. There are more general indicators, such as “Manufacturing Cycle Time”, “On time pickups”, “Material Value Add”.
• The Global Logistics Scorecard is a high-level performance evaluation tool. It helps to estimate logistics performance from the view point of CEO or manager of the large (meaning international) logistics unit. Indicators that are used for this scorecard are helpful for global view on performance problems - “Avg. vessel turnaround time”, “Inland freight cost”, “Damage or pilferage”.

So, the scorecards are related to each other as:

Global Logistics Scorecard (high level)
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Supply Chain Scorecard (middle level)
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Transportation Scorecard (low level scorecard)

Check scorecard details.

There are different tasks that logistics company might face, the most important one is improving performance, e.g. doing the same delivery faster and more efficiently. In this blog we are reviewing the best ideas and tools that can help with this task.

We start with measurement tools. Also, called “metrics”, “scorecards” or “KPIs”. Actually, there are various approaches on how to measure and control performance of transportation and delivery service, here are some good products to start with.

Check scorecard differences page to learn more about focus of each scorecard.

If you will purchase together these four scorecards you will have 35% discount.