We are wrapping up a logistics network optimization project, and I am seeking examples and references for creating analytical solutions and dashboards to compare optimized scenarios. What examples can you share?
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Great project. I hope you find it rewarding as you see the results from your hard work.
Network optimization can be a powerful tool to help SC practitioner seeing a real-time KPIs snapshot of SC performance (To Compare between Targeted KPIs Vs Reality KPIs) if done right.
When it comes to analytical solutions and dashboards to compare optimized scenarios, I would consider both KPIs dedicated to better serve clients and also internal KPIs to continue to adapt/adjust performance for a better and smarter optimization within the organization as well.
That's said, it should start with what your clients needs and it will also reflect the internal KPIs.
Customer requirement KPIs: Customer satisfaction, Complaints, Returning customers, New customers/month, Revenue/customer, Profit/customer, etc.
Some Logistics KPIs to consider such as: Total shipping time, cost, speed. Total modes of transportation. Total land cost. On time deliveries. Total shipments. Cost per shipment. Scheduling compliance. Freight tracking compliance. Bill of Lading Accuracy, etc.
Order Management KPIs: Order Accuracy, Fill rate, Perfect Order, Shipping Time, Cost, Total Shipment, returning orders, etc.
Supply Management KPIs: Supply Lead-Time, Capacity Utilization, Sourcing Efficiency, Supplier Risk Evaluation, etc.
Stock/Inventory Management KPIs: Inventory turnover, Inventory accuracy, Back order rate, Inventory to sales ratio, Inventory replenishment rate, Inventory On Hands, Inventory Holding Cost, Obsolete Inventory, etc.
Distribution Management KPIs: Space/facility utilization, Flow rate, Warehousing cost, etc.
Transportation management KPIs: On-time delivery, Average Days Late Delivery, Transportation cost, Freight payment accuracy, Dwell time, etc.
Besides from analytical solutions, I would consider adding what-if scenarios in terms of logistics network optimizations between major routes and alternatives in case of weather/natural disasters, port congestions, blockages, protests, pirates, geopolitical conflicts and such.
Hope that helps. If you have any questions, please let me know. Good luck with your project.
The overall KPI metric that works best for comparisons is miles/pallet. Your optimization scenarios should be reducing this. When analyzing the results make sure that fuel has been removed. it adds un-necessary variation. If you reduce miles you will reduce fuel costs.
Kamala Raman is the best source for Gartner papers on optimization.