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Logistics Performance Management

Once a logistics partner is onboard, the real works begins. Whether it is a freight forwarder, a domestic trucking firm, a parcel or airfreight supplier, a railroad or steamship line, or even complicated 3PL or 4PL outsource relationships, managing logistics performance is a never-ending exercise.

  • How do I measure and monitor my logistics supplier’s performance?
  • What metrics should I use and how can I roll things up into a supplier scorecard?
  • What’s the most effective way to conduct quarterly business reviews with my logistics partners?
  • How can I contractualize my relationship and use the contract as a means to measure and enforce my requirements?
  • Can tracking my spend with logistics suppliers help me manage categories and supplier relationships better?
  • Reliability - Achievement of customer demand fulfillment on-time, complete, without damage, etc.
  • Responsiveness - The time it takes to react to and fulfill customer demand
  • Agility - The ability of supply chain to increase/decrease demand within a given planned period
  • Cost - Objective assessment of all components of supply chain cost
  • Use of Assets - The assessment of all resources used to fulfill

   

Why Choose Spinnaker?

Spinnaker has deep experience in helping clients select and implement logistics suppliers as well as developing programs to manage and improve those logistics supplier relationships. Here are some of the benefits you can expect from a Spinnaker-designed Logistics Performance Management program:

  • Understand who your suppliers are
  • Rationalize your supply base and optimize who is used for what
  • Get better insights into supplier performance, especially fact-based insight
  • Disengage with low-performing, high-risk suppliers
  • Build more collaborative supplier relationships
  • Give more business to high performers
  • Identify risks through early warning signs
  • Identify supplier continuous improvement opportunities
  • Prevent and mitigate supply risk
  • Gain insights that help suppliers improve their performance and reduce costs and risks
  • Set criteria for new supplier on-boarding and approved supplier lists
  • Work on development projects with suppliers
  • Create preferred or certification programs

Developing and implementing an effective Logistics Supplier Management program can yield tremendous results via improved business performance, reduced costs, and the ability to focus on other core competencies that led to the outsourcing decision in the first place. By leveraging Spinnaker’s Supplier Management consulting services you can rapidly develop the capability to effectively manage outsourced logistics and distribution suppliers to achieve your supply chain strategy objectives.