Logistics TOP 100

One week ago the Fraunhofer Institute for Supply Chain Services in Nuremberg published in cooperation with Deutsche Verkehrs-Zeitung and Bundesvereinigung Logistik an updated study of the one hundred best german logistics provider regarding their turnover in the business year 2011. Non-surprising first place is taken by Deutsche Post DHL with an annual turnover of approx. 8.1bil Euro. Compared to logistics provider worldwide DHL is in the first place as well, followed by UPS and Fed Ex.  In total the german logistics market volume slightly increased up to a record result of 223bil Euro.

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Development of a logistics balanced scorecard

As I mentioned in my last post profitability, structural, productivity and quality oriented ratios are common objectives in logistic strategies. In order to control logistics activities performance indicators need to report all relevant information to show trends and developments. Within a balanced scorecard logistics management has the opportunity to match strategic objectives and KPIs. This is the first and most important step before implementing a balanced scorecard. If management just focuses on "easy to measure" KPIs which are not connected to the logistics strategy a balanced scorecard just hides key problems. Furthermore, taken actions to improve the wrong KPIs have no positive impact on the strategic goals. In consequence time and effort are wasted.

SuCess Toolbox - Logistics Balanced Scorecard

In terms of business performance measurement most companies focus on financial KPIs like Return on Equity, Economic Value Added or share price, just to mention a few of them. Mostly the results of these figures are even confusing due to a missing linkage to the company's strategy. In consequence, a huge amount of big companies lead their business by concentrating on less than ten main KPIs. Nevertheless lower management levels as well as single departments need to define own, more process oriented performance indicators to realize continuous improvements and support the company's strategic objectives.

8 megatrends that impact supply chain networks - part 2

As promised a few days ago the megatrends 5 to 8 are described in the following post. These megatrends are more focused on the internal perspective of economy than on global economical developments.

8 megatrends that impact supply chain networks - part 1

The design of supply chain networks is a common task for suppliers, manufacturers and retailers to meet customer requirements. Although the customer should always be in the focus of strategic business decisions, several megatrends have a huge impact on the design of global logistics networks. Four of them can be described as follows: