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WAREHOUSE BENCHMARKING Meeting January 2010

WAREHOUSE BENCHMARKING Meeting January 2010. Seven Steps to Successful Benchmarking. Plan 1. Set Benchmarking Priorities 2. Identify the Key Processes Measure 3. Collect Data – Operational and Managerial Compare 4. Identify the Exemplar – Research and compare best-in-class performance

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WAREHOUSE BENCHMARKING Meeting January 2010

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  1. WAREHOUSE BENCHMARKINGMeeting January 2010

  2. Seven Steps to Successful Benchmarking Plan 1. Set Benchmarking Priorities 2. Identify the Key Processes Measure 3. Collect Data – Operational and Managerial Compare 4. Identify the Exemplar – Research and compare best-in-class performance 5. Identify Gaps – Define reasons for low performance 6. Identify Improvement Roadmap – Develop an improvement roadmap and set priorities Act 7. Close Gaps and Improve/Refine Processes

  3. Step 1: Set Benchmarking Priorities Align distribution function objectives to the corporate goals (i.e. Reduce distribution costs by 25%, Attain 99% On-time shipments) Identify and work on the things that have the most impact to the corporate strategy

  4. Step 2: Identify Key Processes Identify your core processes Rank those based on both the strategic impact on your company and the impact on your customer(s).

  5. Step 3: Collect Data Once the processes that represent high strategic value to both the company and the customer are identified, gather performance data for those process areas. Quantitative benchmarking will indicate which areas are not performing well.

  6. My Performance, Best Practice & the Gap Process: Storage & Inventory Control - KPIs High Gap Medium Gap Low Gap

  7. Step 4: Identify the Exemplar (Best-in-Class) Do not stop benchmarking effort only with quantitative benchmarking results Look qualitatively at the processes, sub-processes and process attributes to understand the successful environment Use process benchmarks

  8. Receiving & Inspection : Process Benchmarks

  9. Receiving & Inspection : Self-Assessment

  10. Step 5: Identify Gaps The qualitative process assessment is summarized, gaps identified and processes identified for improvement

  11. Warehouse & Fulfillment: Gap Analysis High Gap Medium Gap Low Gap You Exemplar

  12. Warehouse & Fulfillment:Roadmap Rating Tool- Results 3 3 3 3 2 2 2 3 3 3 2 2 1 1 2 3 High Impact Medium Impact Low Impact High Gap Medium Gap Low Gap Highest & Secondary Priority

  13. Step 6: Identify Improvement Targets With an understanding of the strategic impact, value and the gap-to-best practice, the company can now establish improvement targets. It is important that the company spend its improvement resources (human & financial) on the areas that will generate the greatest return.

  14. Warehouse & Fulfillment: Gap Review High Gap Medium Gap Low Gap You Target Exemplar

  15. Step 7: Close Gaps • Establish achievable near-term targets for selected focus areas. • Set targets for those areas in which you will invest in significant improvement initiatives.

  16. Warehouse & Fulfillment: Final Initiatives High Gap Medium Gap Low Gap You Target Exemplar Interim Target

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