7 Steps to Self Assessment
Do you wonder how your fulfillment operation performs against others in your industry? Do you know which processes you’re handling well and those that need improvement? Or even which processes have the most impact on customer service levels? Or which of them lower warehousing and fulfillment costs while improving performance?
Benchmarking, the process fulfillment managers use to draw meaningful comparisons between their companies’ performances and industry standards, can provide answers to all these questions. First, consider the two types of benchmarking.
• Performance Benchmarking compares quantitative performance results, or metrics, to those of several different companies or to industry standards. Its objective is to identify areas for improvement.
• Process Benchmarking compares specific processes to best-in-class process attributes in a qualitative manner. Its objective is to improve specific processes and operations within the business.
Many companies rely solely on quantitative performance benchmarking or comparing metrics. But they never turn over the rock to learn what companies are doing to actually drive their results. Processes drive results, however, and performance benchmarking only identifies gaps in the desired result. In other words, process benchmarking diagnoses the root cause of the gaps so they can be treated.
Effective and Practical
Though outside consultants can help with benchmarking, many companies can self-assess their warehousing and fulfillment operations. Benchmarking your organization takes work, but it needn’t be overwhelming. Try these seven steps.