World Class Logistics Report

Issue 1 Logistics Megatrends

1. Logistics Value Added — computing logistics contribution to the corporate economic value added (EVA).
2. Efficient Logistics — identifying optimal fill rate - response time service combinations for item-customer families.
3. Perfect Order Percentage — computing the portion of all orders delivered perfectly incorporating fill rate, order entry, on-time delivery, shipping accuracy, invoicing, and more into a single logistics quality indicator.
4. Logistics Performance Gap Analysis — measuring logistics performance in total logistics cost, inventory turnover, first-time-fill-rate, storage density, logistics vehicle utilization, logistics workforce productivity, perfect order percentage, customer order cycle time, and purchase order cycle time against world-class standards.
5. Segmented Customer Service Policy — segmenting customer service offerings by item-customer family categories.
6. Intelligent Forecasting — employing world-class forecasting techniques.
7. Virtual Vertical Integration — achieving the benefits of vertical integration through virtual logistics and supply chain integration.
8. Global Logistics — utilizing global sources for procurement and leveraging global markets for sales growth.
9. Reverse Logistics — paying attention to conserving and protecting natural resources through recycling, returnable containers, etc.
10. Logistics Centers — treating the traditional warehouse or distribution center as a logistics activity center including warehousing, order fulfillment, value-added services, cross-docking, international preparation, kiting, etc.
11. GALP — adopting and documenting generally accepted logistics practices.
12. Computer-Aided Logistics Management — integrating best-of-breed systems for customer response, inventory planning, supply, transportation, and warehousing.
13. Paperless Logistics — taking paper out of logistics through electronic commerce, the Internet, EDI links, paperless warehousing, global positioning systems, on-board terminals, etc.
14. AMHS Renaissance — deploying the new breed of pre-engineered, reasonably priced, highly reliable automated material handling systems.
15. High-Speed Shipping — taking advantage of advances in rapid rail, ocean and air transportation.
16. Chief Logistics Officer (CLO) — raising and integrating the accountability for corporate logistics performance.
17. Logistics Planning Staff — assisting the CLO with strategic logistics evaluations, logistics simulations, and logistics activity profiling.
18. Logistics Partnerships — leveraging the strengths of key third-party logistics providers to enhance logistics value added.
19. Human-Friendly Logistics — maintaining safety and morale for the logistics workforce through ergonomic design, safety programs and environment-friendly logistics.
20. Certified Logistician & Logistics Manager — educating and certifying the logistics workforce.

To assess the standing of your own logistics organization, please count the number of megatrends that are already in place in your organization. The following scoring can be used to assess your standing relative to world-class logistics standards:

Score 0-5 6-10 11-15 16-20

Evaluation Developing Emerging Above Average Superior