Why Logistics And Product Quality Scorecards Should Be One And The Same
Article Written by Elemica’s Director of Global Marketing is featured in Talking Logistics
It’s been several decades since Toyota revolutionized the supply chain world with its adoption of lean manufacturing and total quality control methodologies that encouraged companies to take a strategic view on supplier relationships and continuous improvement. Over the last thirty years, the Toyota model has proven to work very well. Today, many of the best companies are embracing this approach and leveraging the competitive advantage they can achieve by working openly and closely with suppliers.
Many businesses use logistics scorecards to improve their supplier and customer relationships and strive for continuous improvement for inbound and outbound performance. Logistics scorecards, when used effectively, can help maintain a healthy supply chain and benefit all parties – the company, the customer, and the supplier. Scorecards should align with corporate goals and objectives and be shared and agreed upon by all parties.
Some typical KPIs for a logistics service provider include:
- On-time delivery measures
- Average idling time
- Average loading/unloading time
- Percentage of shipments delivered in full
- Average transportation costs – per mile, weight, asset
- Number of claims issued
- And many more
What if you extended these measurements to incorporate product quality measurements? How would this add value to your supply chain?