In our projects and training courses on logistics controlling, the expectations are often clearly formulated: What are the most important logistics KPIs and what is the easiest way to access them? I then compile these key figures on a monthly basis and send them up one floor, and my logistics controlling is complete…
Such logistics controlling has absolutely nothing to do with the passion to continuously improve and perfect oneself and one’s area of responsibility. Such logistics controlling also does not help with the factual necessity to continuously improve in order not to lose out in the cross-company competition of logistics performance! Fortunately, the path to effective logistics controlling is more exciting and challenging. In order to be able to travel this path safely, we would like to take a look at the best-practice building blocks from which a particularly successful logistics controlling system can be constructed. In many companies, the first thing that comes to mind when the keyword logistics controlling is key figures, and everyone sets out in search of the ultimate logistics key figures; but slowly …
Basic principle 1: If you don’t know what you want, you don’t know what to measure
If you want to improve your logistics processes, you won’t just record any key figures at random. You will probably first identify weak points, develop ideas for improvement and implement them step by step. Only when it comes to measuring where you stand and how quickly the work is progressing do key figures come into play. Sounds logical; so why don’t many companies do the same with their controlling? In best-practice companies, logistics controlling is closely aligned with the logistics strategy: The fields of action are defined and broken down based on the logistics strategy. Even if no special measures are required in one area, the (hopefully clear) logistics strategy provides the targets that are then operationalized and made measurable in the form of key figures. Best practice building block 1 of logistics controlling is therefore: Logistics controlling begins with a clear idea of your own logistics strategy.
Even if the strategy is clear, we have not yet arrived directly at the key figures, because …
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