7 Steps to Self Assessment
How better benchmarking can maximize performance in your fulfillment center
April 2008 By Kate VitasekBenchmarking, 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.
You can focus on processes that have lower impact, but their results won’t create optimal value from the investment driving those improvements.




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