Logistics performance measurement system for the automotive industry

Abstract

Logistics can be seen as a key competitive factor in the automotive industry due to the rising number of model variants and options. With the increasing importance of logistics (Gunasekaran et al. in Int J Prod Econ 87(3):333-347, 2004), the evaluation of logistics effectiveness and efficiency is gaining increased attention. Logistics performance management (PM) is the key to quantifying the current state and improvement potentials within logistics. To account for the increasing importance of a supply chain, logistics PM needs to start at the supplier and reach at least until the original equipment manufacturer's (OEM) assembly line. Furthermore, logistics PM needs to be in line with the latest logistics concepts, mainly based on lean logistics. In contrast to the great importance of logistics PM, the literature analysis shows a limited availability of logistics performance measurement systems (PMS), which are actually applicable to industry within a lean logistics context. The systems in the literature are either too high level to be useful to practitioners (e.g. supply chain-orientated systems) or too narrow in focus, and therefore do not cover the supply chain and lean perspectives. In the following paper, a logistics PMS is developed which allows for assessing the effectiveness and efficiency of current logistics processes. The developed approach incorporates the latest logistics concepts in the automotive industry, integrates a process orientation with a supply chain perspective, and is defined with the specificity required to enable the implementation within a specific industry context and triggers continuous improvement. The suggested framework is evaluated in an automotive context, presenting a short case study on the implementation of the proposed framework at two sites of a German automotive OEM. Furthermore, future application potentials and development needs are summarised. The paper's contribution to the literature is in the field of logistics PM, specifically in the automotive industry. It offers a new approach, applicable to automotive logistics, which follows lean principles. For industry, this paper provides specific suggestions for a PMS, as well as performance indicators to holistically monitor the logistics chain. While being generic in terms of its definition, it can be seen as specific enough to be applicable in industry with limited adjustments. It provides practitioners with answers to the question of which performance indicators to use in today's automotive logistics chain and which indicators serve as a base for continuous improvement.

Supply Chain Performance Measurement: A Case Study about Applicability of SCOR®Model in Automotive Industry Firm

“…The SCORmark database contains historical data from over 1000 companies and 2000 supply chains. The benchmarking process using the SCORmark can be performed by the following steps: (1) defining the supply channels to be compared; (2) measuring the internal and external performances; (3) compares the performance to relevant industrial companies; (4) establish competitive demands; (5) calculate the opportunity value of improvement [18,19]. To facilitate the comparison, the SCORmark stratifies the process performance according to three points [14]:…”

“…The proposed modular performance measurement system can be designed in line with the processes, resulting in a consistent performance measurement system for the whole logistics chain and offering the potential for a supply chain-wide roll-out while, at the same time, covering site-specific processes in a standardized way. Additionally, the comparability of the performance measurement system in terms of benchmarking is ensured throughout the stages of the logistics process, as well as in the overarching performance measurement system [19]. Gaiardelli et al (2007) proposed an integrated framework for measuring the performance of the aftermarket network and provided an empirical application to two automobile record companies and their official service network.…”

“…The next step is the measurement of the performance indicators for the dashboard. Indeed, the formulas for calculating the different KPIs are presented below: Customer return rate = (19) Supplier return rate= (20) The established scorecard containing the benchmarking values provided by the SCOR standard as well as the improvement objectives for each metric are presented in Appendix1.…”

Studying the Interrelationship amongst various Performance Metrics for Third Party Logistic Service Providers in Construction Projects

“…Logistics performance management is the key to quantify the current state and improvement potentials within logistics. A PMS, consisting of several KPIs, is seen as a key for creating transparency and a trigger for improvement ideas (Dörnhöfer et al, 2016). In the context of the construction industry, managing the communication and relationship with subcontractors will lead to less fragmented supply chains, greater control and focus on quality (Karim et al, 2006).…”

Redesenho De Sistema De Medição De Desempenho: Um Framework E Sua Aplicação Na Cadeia De Suprimentos Do Setor De Óleo E Gás

“…O SMD deve gerar valor para a organização e é considerado fundamental para a continuidade da sua utilização como ferramenta de gestão (DORNHOFER et al, 2017). O SMD é a chave para quantificar o estado atual de desempenho, elevando a competitividade do negócio (DORNHOFER et al, 2016) e sendo um meio para gerar informações para a tomada de decisões, permitindo que a alta administração saiba, em função do real desempenho, quando há necessidade de intervir (FERNANDEZ et al, 2012).…”