By Lisa Henthorn, V.P., Marketing & Communications
According to research from Gartner, expanded logistics complexity and extended global networks drive the need for a single set of measurements that help companies better track logistics performance globally. However, while most companies have ready access to low-level metrics, they struggle to organize and align these metrics with their impact on higher-level performance goals and objectives. This dynamic is problematic because in order to achieve higher levels of maturity and performance, logistics must synthesize with widespread supply chain functions.
To help companies define a structure for measuring logistics process performance while also aligning it with the end-to-end supply chain, Gartner has issued a report, “Align Supply Chain and Logistics Performance with the Hierarchy of Logistics Metrics.”
We believe the model offered in the Gartner research will drive improved logistics performance by helping logistics executives:
- Develop a concrete understanding of what they measure and why.
- Identify gaps in current logistics measurements to target ones that drive efficiency, service objectives, and optimal cost.
- Define metric target ranges at the detailed metric level that align with overall end-to-end supply chain goals.
- Understand the interdependencies between logistics optimization and achieving cross-departmental supply chain goals.
Gartner Align Supply Chain and Logistics Performance with the Hierarchy of Logistics Metrics, 16 July 2014, Greg Aimi and C. Dwight Klappich
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