A total of 60 companies were identified and contacted for the case study portion of the
research design. These were identified in the Delphi study as firms who had advanced
along the logistics measurement process and had for the most part adapted a supply
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chain mentality to some degree. A total of 55 personal interviews were conducted with
20 companies. The organizations included 19 for-profit firms and one government
agency. The companies included five in consumer electronics, six in food
manufacturing, distribution, and retailing, two in industrial supplies, two in office
products, and one each in paper goods manufacturing, services, medical supplies, and
specialty products retailing.
The purpose of the case studies was to get more in-depth discussions of the
measurement of logistical processes, better define enablers and barriers to
measurement implementation, and discover tools used to achieve success in the area
that might be usable by other companies. While these interviews again indicated some
disparity, a number of conclusions can be drawn:
. A number of firms used process mapping and process reengineering techniques
to achieve more efficient and effective processes.
. Activity based costing was an important enabler for some firms.
. Data warehousing was also an important enabler for some firms.
. Sharing databases and other information via the internet with both customers
and suppliers improved communication and coordination between firms.
. Providing performance scorecards to customers was considered essential.
. Tying individual employee incentives to key performance measures created
ownership and responsibility for performance.
. Collaboration with customers and suppliers on key interface processes is the first
step in building trust based on jointly defined and shared measures.
. Some companies are bringing key suppliers or customers into the company to
mobilize internal functions to address changes, and this has been more
successful in getting change then purely internal efforts.
. Attention to the supply chain partner’s cultural compatibility and understanding
their business can also facilitate supply chain improvements.
. Top management support is critical to successfully implement successful
logistics measurement initiative and programs