Logistics performance measurement in the supply chain: a benchmark

Abstract

Purpose – The purpose of this paper is to describe the state of logistics performance measurement in corporations based in the USA. Design/methodology/approach – A triangulation approach is used, including, a Delphi study involving more than 100 practitioners, academics, and consultants identified as logistics experts; personal interviews conducted with 55 executives of 20 firms identified by the Delphi study; and a questionnaire mailed to supply chain and logistics executives at over 3,300 firms in 25 industries. Findings – Most US firms do not comprehensively measure logistics performance. The focus continues to be on performance within the organization and not on performance between and across firms. Research limitations/implications – Self-report surveys completed by a single respondent from each firm introduce subjectivity and bias to the study. The sample frame of organizations may not represent the universe of US companies, nor can findings be generalized to other countries. Practical implications – There are great opportunities for logistics cost reduction and performance improvement within firms and across the supply chain. Firms can and should collaborate with their trading partners to implement appropriate measures of logistics and supply chain performance. Originality/value – This paper provides a benchmark for organizations assessing the quality of their logistics performance measurement practices and helps identify opportunities for significant improvement.