Logistic controlling

Analysis of logistic system performance

One of very frequent problems of logistics is its ambiguous position in the organization's structure. As a consequence, no requirements for logistic functions are determined and logistic performance is not measured. A remedy for this common pain is the effective logistic controlling. The demand of clients therefore points to set up links between logistics and other business functions, especially production and manufacturing, sales, finances and marketing.

Detailed mapping of logistic processes enables to define measures of logistic performance and costs. The solution gives specific metrics and their expected values, which should be achieved. One of required outputs is the proposal of monitoring system for selected indicators and their reporting. The controlling is set up for individual logistic activities and processes, as well as for logistics as a whole. Within the Supply Chain solution it is important to define performance and productivity measures of the whole logistic chain and find motivators for continuous improvement of mutual relationships between the cooperating partners along the chain.

Certain physical limits to application of controlling mechanism are the characteristics of the firm's ERP system, which is mostly centred on manufacturing management or sales activities. The solution may be based on the development of new automatic data reports or the use of specialized logistic SW applications, which can be connected to the main information system. Applications of telematics or automatic identification systems might also form a part of the technical support of logistic controlling.

  • proposals for redesign of the organization structure, integration of logistics
  • detailed definition of methodologies for measuring logistic performance and costs
  • proposal of key performance indicators and their recommended values
  • assessment and analysis of the company information system from the viewpoint of logistics
  • assessment of possible implementation of specialized SW applications
  • proposals for implementation of telematics