Metrics that Matter: Customer Service


Very little has more impact on a company’s success than customer satisfaction. True customer satisfaction is a measure of sales, delivery and after sale performance. For example, if you consistently backorder items or deliver them late, customers will eventually become angry.

The Most Important Distribution Center Metrics to Track and Understand


Throughout the supply chain, the use of metrics to track and understand processes provides an invaluable resource for ensuring increased production and customer satisfaction. What Distribution Center Metrics Need Tracking? On-Time Shipping.

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3 Core Metrics & 10 Soft Metrics for Measuring Supply Chain Performance


3 Key Metrics for Measuring Supply Chain Performance Beyond Cost Reduction. The goal is to keep inventory levels at a minimum to meet customer needs. 10 Soft Metric Considerations in Measuring Supply Chain Performance.

Supply Chain Metrics - Gaining Visibility in a Data-rich World


The second part of Drucker’s quote, “if you can't measure it, you can't improve it,” really brings home the importance of having the right set of metrics. When it comes to supply chain metrics, “beauty is in the eye of the beholder.”

Executing Customer-Centric Supply Chain Strategies

Supply Chain Shaman

Definition: “Customer - centric is an approach to doing business that focuses on providing a positive customer experience both at the point of sale and after the sale in order to drive profit and gain competitive advantage.” What is a Customer-Centric Organization?

Seven Thoughts to Build a Customer-Centric Supply Chain Organization

Supply Chain Shaman

Customer segmentation, and building a customer-centric supply chain, is a popular topic at conferences. When I sit through sessions on building a customer-centric supply chain, I am looking for case studies on how companies have applied the concepts to drive greater value.

Which Metrics Matter? Interview with Philippe Lambotte

Supply Chain Shaman

My journey to understand supply chain Metrics That Matter started three years ago. Balance: The ability to balance a portfolio of metrics to maximize market capitalization and free cash flow. Here I share his insights: Philippe, which supply chain metrics do you think matter?

Logistics Key Process Indicators (KPIs)

The Logistics of Logistics

A KPI is an indicator (a metric) that you have chosen, and agreed with your partners and or customers, that will determine whether you are meeting your critical success factors. Key Process Indicators vs. Metrics. I sometimes use the terms KPI and metrics interchangeably, but they are not the same. A metric is any standard of measurement (number of carriers, inventory turns, average shipment weight, etc.). The New Logistics KPI – Measuring Customer Service.

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Multichannel Fulfillment & Shipping: Considerations for Wholesale Distributors & OEMs in the Transition From Single Channel Shipping


E-commerce has presented wholesale distributors and original equipment manufacturers (OEMs) with a crown opportunity for growth, but it comes at the cost of transitioning from single-channel shipping. Over the last year, average e-commerce sales have increased more than 15 percent, revealing the increasing demand for multichannel fulfillment and shipping. Adapting supply chain systems to succeed in multichannel fulfillment and shipping, also requires additional setup time.

Why Financial Reengineering Does Not Equal Supply Chain Improvement

Supply Chain Shaman

Snow fell last night as I worked on my last Supply Chain Metrics That Matter report. Ironically, most companies are very entrapped in measuring and rewarding functional metrics which degrades overall improvement. Cash-to-cash is a compound metric.

Wanted: Supply Chain Architects!

Supply Chain Shaman

The focus is to rationalize the flows from the distribution center to the customer. The flows are typically linear and the analysis is on alternate modes and best shipping lanes. Forty years ago as a chemical engineering student, I learned the tedious craft of chemical plant design.

23 Reasons the Ideal TMS is best for LTL Freight Shipping


Using less-than-truckload for medium-sized shipments is one of the great innovations in shipping. It produces results at a fraction of the cost of full truckload (FT) or small package shipping. However, the needs of the modern shipping industry have reached an optimal point, and the only way to further push the envelope is by using a dedicated transportation management system (TMS). Stronger, Higher Level of Customer Service. Mobile Access to KPIs and Metrics.

The Integrated Workforce in the Warehouse

Supply Chain Nation

Fulfilling e-commerce demand direct to consumers, shipping smaller, more frequent orders to customers, and integrating robotics and advanced automation mean there is no more “business as usual.” Second, they must accurately match labor resources to fast-changing daily and hourly fulfillment requirements to maximize customer service and efficiency. Customer service is improved while unplanned overtime is reduced. Work in the warehouse is changing rapidly.

The Integrated Workforce in the Warehouse

Supply Chain Nation

Fulfilling e-commerce demand direct to consumers, shipping smaller, more frequent orders to customers, and integrating robotics and advanced automation mean there is no more “business as usual.” Customer service is improved while unplanned overtime is reduced.

The Most Important Metric for Increasing Revenue


Average Order Value (AOV) is one of the few important metrics for businesses to analyse and track to gain an understanding of their current revenue and how they may increase it. It gives an insight into customer behaviour and is often used in collaboration with conversion rate (CR) and revenue per visit (RPV) to drive up overall revenue. This gives an indication of how much each customer is willing, able or needing to spend on your products. Customer service.

Actionable Insights: Customer Sales and Service Action Center


Next we will provide an overview of the Customer Sales and Service Action Center as well as the associated key performance indicators (KPIs). Customer Sales and Service Action Center Overview. KPIs for Effective Customer Sales and Service.

Managing a Third Party Logistics Partnership

The Logistics of Logistics

When you have chosen a 3PL partner, insure that you have an effective Service Level Agreement (SLA) with accompanying Key Performance Indicators (KPIs) to manage the Service Level of the 3PL. If you do not want to start at the 3PL as a contact customer with a SLA/KPIs, you can ship your goods and become a public account. As a contract customer, upfront costs will be a subject of discussion and negotiation.

The 7 Habits of Highly Effective 3PLs

The Logistics of Logistics

Highly effective 3PLs have developed the right habits, culture and processes to deliver excellent service to their clients. The best 3PLs communicate effectively throughout the entire lifecycle of the customer relationship. During the sales phase a good 3PL does the following: listens to client needs, manages client expectations, customizes services, and builds relationships. Highly effective 3PLs develop and provide customized solutions for their clients.

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The Magic Bullet for Real-Time Supply Chain Collaboration? Cloud Visibility.


The result is expensive; using faster shipping methods to get the part back on the shop floor. Visualizations can be created or configured by and for the individual user, work center, plant or multi-plant/enterprise, supplier, or customer level.

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Drivers of Modern-Day Warehouse Management System Adoption

Veridian Solutions

As the industry expands, the ability to fulfill orders and move product will affect customer service and profitability. Seasonal and sudden changes in product demand and variety mean warehouses must continuously reslot items to reduce pick times and ship products faster.

4 Long Term Ways to Save with Less Than Truckload Freight Shipping


So, your organization has decided to explore the benefits and perks of less than truckload freight shipping. Let’s take a look at how the TMS impacts the costs of shipping over the long term in four critical areas. Overall Costs of Less Than Truckload Freight Shipping. For an organization to justify the cost of using Less than truckload freight shipping, the topic of return on investment usually crops up. Customer Satisfaction.

Webinar: Using LTL Key Process Indicators (February 27, 2013)

The Logistics of Logistics

The webinar will also cover ways to improve the number or on time shipments and improving customer service. LTL key process indicators (KPIs) for the most important aspects of LTL shipping. Customer service. In this free webinar, participants will learn a methodology for using LTL key process indicators (KPIs). The LTL key process indicators are used to measure and then improve LTL carrier performance.

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Supply Chain Diagnostic: A Four-Step Process

Supply Chain Shaman

When a company contacts me to help them with their supply chain, the pain is usually a gap in customer service. Analyze Past Results in Customer Service. I am working with a company with issues in delivering customer service. July is my birthday month.

2020 Requires Big Wings and Feet

Supply Chain Shaman

I find senior executives love to throw around superlatives like customer-centric, agile, efficient and responsive but lack the understanding of how the words translate to supply chain strategy in the real world. 5 A Focus on Functional Metrics Throws the Supply Chain Out of Balance.

This Week in Logistics News (May 13-17, 2013)

Talking Logistics

UPS App For iPad Advances Suite Of Customer Technology Offerings. Chainalytics Creates New Metrics for Demand Planning Consortium. In related news, Maersk downgraded its forecast for ocean shipping demand.

How Supply Chain Planning Can Create Profit in a Declining Market


When a business finds itself in a declining market, failing to stay in lock step with customer demand poses an existential threat. Rather than cutting back, our customer Mohawk Industries decided to lean in. Improving culture, service levels and profitability.

5 Reasons Why Manufacturers Who Focus on Customer Experience Will Win


Manufacturers have always struggled to know their customers. Customers can place orders online, by phone, in person and in nearly any other means desirable. In addition, customers are continuing to demand lower prices and free shipping. Determine What Customers Want Today.

The 9 Key Considerations of an Effective Last Mile Logistics Strategy


According to Mitchell’s NY , last mile logistics is seen as the least efficient leg of shipping, and it accounts for up to 20 percent of the total shipping cost of a product. E-commerce markets move at the speed of light, and unnecessary delays could result in customer losses. Performance measurement goes back to cutting costs wherever possible, without sacrificing quality or service. Understanding last mile logistics is only half the battle.

[e-Book] The Ultimate Guide to Last Mile & White Glove Logistics


Last mile e-commerce, last mile technology, last mile metrics and white glove services make standard shipping conversations seem like child’s play, and the new focus on the last mile is anything but. Leveraging Metrics, Shippers Find Better Ways to Excel at Customer Service and Last Mile Services. White Glove Services and Transportation Management at an Extra Layer of Finesse to Last Mile Logistics.

Lean Manufacturing: Is it Really Worth It? 16 Big Benefits Say, “Yes.”


Customer expectations of reliable quality and rapid delivery forces today’s manufacturers to either shorten cycle times or lose business. Customers simply switch suppliers when others are more capable of delivering within their preferred timeframes. Lean systems have provided a formidable operating strategy for leaders determined to achieve and maintain optimal operational systems and customer satisfaction levels. Customer service performance is poor.

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What Should Be the Role of the Store?

Supply Chain Shaman

Macy’s had been bragging at conferences about their work on cross-channel fulfillment with progress made in using their stores to ship directly to customers. I called customer service and complained. Macy’s requested that I ship the damaged bowls back.

Why Reverse Logistics Systems and Transportation Management Should Be Considered Together


Quality, service, costs, environmental and legislative issues are strategic issues that must be managed in addition to the operational challenges mentioned above. Customers want results. meaningful and accurate performance metrics. customer satisfaction.

Defining Your Own Logistics Competitive Weapon

Talking Logistics

You have to think and act beyond cost manage and find ways to leverage supply chain and logistics as a competitive weapon — that is, look for ways to leverage supply chain management to drive top-line growth, increase market share, and enhance customer loyalty.

Why Parcel or Small Package Auditing Is Important for Shippers


In shipping, fuel surcharges, toll costs and expenses can change rapidly. As a result, the overall cost of shipping a small package may be significantly lower than originally determined. Customers are not always able to receive a package, and leaving a small package at the doorstep is quickly seen as inviting thieves to take what is sitting in the open. Accountability and Visibility Are Critical Parts of Modern Shipping.

10 Tips Shippers Can Use to Reduce Costs in LTL Procurement with Better Request for Pricing Bidding


We've schedule pick ups with the vendors of our shipper customers. Shippers who prioritize securing the lowest price from carriers may actually end up paying more because of costs embedded in carrier expenses, resulting in problems such as service degradation and supply chain disruption. Shippers structure a successful RFP when they align themselves with carriers that fit their shipping profile. Analyze bids for optimal pricing and service scenarios.

Top 15 Logistics Blog Posts of 2014


There are countless number of logistics service providers who offer many different types of broad and niche services. When a manufacturer’s product normally moves through the supply chain network, it is to reach the distributor or customer.

3 Steps to Achieving Predictive Logistics

Talking Logistics

A reporter recently asked me how, in my view, the shipping industry would make money in the coming years. In the past, growth came from scale: mega-ships, port infrastructure, and buffer.