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Distribution Center Management Balanced Scorecard Approach


In a fast-paced business environment, distribution center management is a very difficult task. If you work in retail, every day is hectic because you have to handle thousands of stockpiles and respond to growing customer needs. The management of the distribution center must maintain a balance between demand and supply. As the distribution center is the center of gravity, it receives / sends products from many members of the supply chain.

In the distribution center's store, you need to manage not only operations, but also business and growth. Successful implementation of the distribution center management requires a balanced approach for the team to understand, implement, and track progress. I developed a strategic distribution center management model that uses the simplified Balanced Scorecard that focuses on four perspectives. This perspective shows how good your distribution center is doing. If you fully understand the action now and in the past, you will imagine how much effort you and the team are giving to the distribution center. For this, the customer should be divided into segments, collecting revenue in the past (for example, 5 years ago) for the current period. When you're done, I think you have to designate two important segments: the well-performing segments and the neglected segments. Customer Perspective

I suggest you conduct regular customer satisfaction surveys to not lose this segment to your competitor. You should also try to create a customer service policy to ensure that all your customers receive a standardized response and service. In the case of the neglected segment, you must maintain customer retention. Just drift and tell in vain your inactive client and listen to their suggestions and comments. This information is very useful and can be used for the next perspective. Once you get information about both the well-performing segments and the ignored segment, you now have very good ideas on how to improve your operations.

The goal of the internal business process is to improve your operations so you can win new customers and retain existing customers. I have collected a generic development initiative for managing distribution centers as follows: Improving the Process by mapping business processes by identifying non-value activities in a distribution center, to consider the implementation of the quality management system (eg TQM or ISO). This is highly recommended if you receive a lot of complaints from customers due to shipping or document defects.

Information Technology: Personally, I do not think that all distribution centers use an integrated IT system. Different systems cause confusion between processes. For example, if the order processing system is separated from the warehouse system, service providers must enter the receipt into two different systems. This is time-consuming and costly. Investing in an integrated information system needs to be investigated.

Innovation: Investment in innovation sometimes spends more than saving money. However, innovation is needed. An existing buyer can run to an upgraded distribution center, or if no sales point is alienated, they can gain new insights into new ideas. I recommend RFID, status monitoring, vehicle tracking and automation of the equipment to simplify the distribution center.

Cost Management: Three large-cost areas for storage, truck loads and picking. These elements deserve much attention.

Security & Compliance: Corporate Social Responsibility Trend Spreads Worldwide. You may not be able to do business with large clients if you do not deal with issues such as workplace safety, road safety, hazardous materials, fire safety, compliance, etc. These are not income-generating topics, but they are indispensable. Learning and Growth

You can not do everything with you, the employee is essential in business. Experienced staff performs the right tasks, satisfies customers, and generates revenue for you. This is the last perspective.

Logistics and supply chain management are a relatively new topic, and I think many staff in the distribution center do not have formal training / training in this area. Do not hesitate to provide the staff with the knowledge, or OK on-on-training or structured training. You should try new ideas and knowledge to your colleagues as much as possible.

Last but not least, the employee is the point. A satisfied employee will give you very useful information if you make any corrective action. On the other hand, the dissatisfied worker causes confusion, changes the change, and acts professionally against clients. Employee Satisfaction Survey or employee retention program will help maintain the distribution center in a sustainable way.

Source by sbobet

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