Module 3 – Case
BENCHMARKING LOGISTICS PERFORMANCE
Assignment Overview
Read the required sources listed in the Background Info.
An organization can do things the same way indefinitely
unless it stops to think about them. The process of stopping to think, and then
acting, is called process improvement. DHL finds that it’s critical in driving
down costs, both for itself, and for its partners. “Within the retail and
consumer group at DHL Exel Supply Chain, we’ve already held almost 100 Process
Improvement/DMAIC workshops this year, which have contributed to continuous
improvements and identified effectiveness equating to four million pounds
sterling.”
One thing to look at is the whole value chain— the flows of
goods, information and money, business systems, business structures and
functional silos, corporate culture, etc. “We offer our customers these as
‘Value Chain Assessments’ (VCA), where a customer may have a broad
question—where is the risk in my supply chain? Where are my major costs and how
can I impact them? Answering these questions is often easier said than done as
many in-company logistics or supply chain managers lack visibility beyond their
own supply chain operations. We can fill in the gaps in the picture—especially
with today’s highly complex and extended retail supply chains. With a wide
range of clients, 3PLs can provide benchmarking and information on best
practice drawn from a range of industries, as well as practical deliverable
solutions. Our VCA methodology challenges our customers to embrace change—but
it also challenges our own teams to do likewise. Success is not in the delivery
of VCA report—it’s in being a catalyst to deliver benefits to our customers.”
Write an essay responding to the following questions.
1. Explain why a
two-stage benchmarking methodology, which utilizes performance evaluation
metrics followed by continuous improvement metrics, can be a useful tool for
achieving competitive advantage.
2. Discuss why the
inclusion of the second phase, related to continuous improvement, represents a
step forward from traditional benchmarking approaches.
3. Evaluate the
general adequacy of the major performance criteria used in the AHP article for
assessing other organizations’ logistics. Feel free to suggest additions to, or
modifications of, the performance criteria if you believe these are inadequate.
4. Describe the
role a 3PL could play in implementing an effective benchmarking strategy.
Assignment Expectations
Display an in-depth understanding of benchmarking,
benchmarking metrics, and how benchmarking is integrated into the strategic
management effort. Display a critical assessment of the benefits and
limitations of the two phases of a double Analytic Hierarchical Process
approach to benchmarking. Display critical thinking, rigorous logic, and
synthesis of the current course materials with previous courses to assess the
relationship between the AHP approach and continuous process improvement.
General Case Expectations
