Subscribe to our free, weekly email newsletter!


Using Technologies to Increase Perfect Order Metrics


July 26, 2011

Companies are continually finding new ways to get the right goods to the right customers at the right time, and have developed many metrics to measure their performance in these areas. Most of these metrics show distribution productivity and accuracy are improving over time, which keeps raising the bar for service levels. For example, from 2007 to 2008, companies reduced their average days on hand of finished goods inventory from 35 days to 28, reduced dock-to-dock cycle time by 2.5 hours, and reduced days of sales outstanding from 40 days to 35, all while maintaining 98 percent fill rates.

Customers demand continuous improvement, and markets reward it. In 2007 the 25 companies with the best supply chains (as measured by AMR Research) greatly outperformed the S&P 500, producing an average total return of 17.9 percent, compared to 3.5% for the S&P.2 Companies with perfect order rates (a popular metric that measures customer orders that arrive complete, on time, undamaged, and with an accurate invoice) of 80 percent or higher are three times more profitable than companies with perfect order rates of 60 percent, a separate AMR Research study found.3 Better perfect order performance also correlates strongly to higher corporate earnings per share (EPS) and return on assets (ROA), the same study found.

This white paper explains how each aspect of perfect order performance can be improved through enhancements to data collection processes and technologies.


Download this paper:
Using Technologies to Increase Perfect Order Metrics
Sponsored by:
image
* Indicates a required field
*Email:
*First Name:
*Last Name:
*Title:
*Company:
*Country:
*Address 1:
Address 2:
*City:
*State:
Province/Region:
*Zip/Postal Code:
*Phone Number:

*What type of distribution center do you operate?
Wholesale
Retail
Manufacturing
3PL Provider
Other

 
*What best describes your job function?
Executive Management
Transportation Management
Distribution Management
IT Management
Purchasing Management

Save my data on this computer (do not use on public/shared computers)

Subscribe to Logistics Management magazine

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your
entire logistics operation.
Start your FREE subscription today!

Recent Entries

In the third-party logistics (3PL) sector, the ongoing trend of merger and acquisition (M&A) activity never seems to take a break. That is apparent in recent weeks alone, with XPO Logistics recent acquisition of Norbert Dentressangle for $3.53 billion, Echo Global Logistics scooping up Command Transportation for $420 million, and Kuehne+Nagel buying ReTrans for an undisclosed sum.

During this webcast attendees will learn about technology that is delivering real-time tracking on freight and putting an end to the all too common question of “Where’s My Brokered Load?”. Whether you’re a broker, 3PL, shipper, or carrier, find out how you can gain automated, TMS-integrated visibility on all your shipments.

FedEx recently took another step in its plans to acquire Netherlands-based TNT-NV and a provider of mail and courier services and the fourth largest global parcel operator for $4.8 billion, which it announced in early April. The company said it has “submitted the required filing to the European Commission to obtain regulatory clearance in connection with the intended recommended public cash offer all issued and outstanding ordinary shares in the capital of TNT Express.”

The American Trucking Associations last week praised Senator Deb Fischer (R-Neb.) for her bill that takes some positive steps towards alleviating the current environment regarding the truck driver shortage.

Global third-party logistics (3PL) services provider Kuehne+Nagel (KN) said this week it has entered into an agreement to acquire ReTrans Inc., a Memphis-based provider of multimodal transportation services.

Comments

Post a comment
Commenting is not available in this channel entry.


© Copyright 2015 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA