Too focused on timely delivery? Do not forget about money!
The recent economic crisis has vividly demonstrated that human resources is the most valuable capital any company has. Innovation and creative ideas make it possible for any business to overcome the crisis. But innovative ideas are not generated by computers or investments. It is people who make decisions, assume responsibility and take risks. Without efficient personnel the company is doomed to fail no matter how much money, production facilities and real estate it has. It is possible to drive the best company down. Incompetent personnel may kill any creative idea. Of course, humans make mistakes, but still no computer all machine can substitute a human being.
Losgistics BSC implementation cycle
That’s why it is important to evaluate performance of human resource department that manages personnel. It should be noted that human resource management has become extremely popular in the recent decade. Human resource capital refers to intangible assets which are sometimes very difficult to evaluate. That’s why use of balanced scorecard is recommended to all big companies that have human resource departments or similar business units.
When we’re talking about logistics, not everything depends on trucks, ships, airplanes and trains. The art of logistics is to make sure that cargos are timely delivered and at the same time the company spends minimal amount of money for shipment. Some logistics companies have turned bankrupts because they were so much focused on timely delivery, which is, however, an excellent key performance indicator to evaluate logistics. But shipment cost per unit is another important indicator which should balance shipment time.
What is effective logistics?
But let’s get back to evaluation of human resource performance and logistics companies. As known, high staff turnover rate is an alarm to any company. Newly hired employees have to be educated and trained. Besides, the company spends certain amount of money to recruit them. That’s why, if a person failed to stay with the company for a minimum period of a year, the company usually suffers losses, since such an employee brings less profits as compared to the amount of money the company has spent for his education.
Logistics managers are not like ordinary office clerk. Indeed, it is rather difficult to find an efficient logistics manager who will make an effective use of all available means of transportation to get maximum profits for the company. That’s why new hire retention rate, every surviving time, employee satisfaction and some other indicators refer to human resource management evaluation play a very important role in logistics measurement.
