MAGAZINE №5 (82) October 2017


CATEGORY   Controlling Analysis in logistics and SCM


As the analysis of logistics market has shown companies strive to improve their efficiency under the conditions of modern economic activity, which requires, at the stage of planning, to form the system of indicators that will allow to compare the current and planned values of performance indices. This calls for a serious analytical model that will allow to assess the impact of specific actions on the resulting business performance. However, most literature sources suggest assessment methods based on the comparison with either average values (e.g., average order picking time, average trip speed, average trip length, average time of storage unit handling, etc.), or with the ‘best practices’. This obviously leads to a wide data diversity that does not allow to conduct an accurate assessment of specific supply chain units.  Therefore, according to the authors, under the modern market conditions, it is advisable to focus on the formation of an individualized system of performance indicators for each specific company. Thus we can talk not just about supposed performance indicators modelling, but about certain performance indices of a particular company. The article presents an approach with a specified system of equations enabling to do calculations and individualize indicators instead of using average values. Along with this the equation system can be extended and complemented considering the specifics of a particular company. Thus, the assessment is based on analytical models, which allows to get to a new level of planning and supply chain performance assessment.

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Published in Controlling


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