A performance analysis examines various performance centers in logistics to determine their contribution to value creation. It checks the costs and quality with which the performance centers of logistics areas such as procurement, production, distribution, and branch logistics meet the requirements.

The performance analysis determines the key figures of performance centers and records the flow of orders, information, and materials between the areas. The amount of costs and the use of different resources are then finally revealed in the input-output analysis.

The goal of performance analysis

The goal of performance analysis is to identify potential for improvement in operational and administrative service departments. As a result, warehouse key figures should be determined, bottlenecks identified, and weaknesses highlighted. Performance analysis is geared toward planning measures to increase performance, minimize costs, and optimize the use of resources.

There are several weak points in corporate logistics that hinder smooth processes and lead to increased costs. In the past, potential analyses have identified the following weak points:

1. Bottlenecks

Long waiting times often occur before bottlenecks. High capacity utilization results in long throughput times.

2. Slow points

These performance points are utilized at less than 70% on average over the year. Slow points are considered typical sources of waste, as their contribution to value creation is minimal or insufficient.

3. Failure points

These performance points are available less than 90% of the time. While preceding performance points are blocked due to interruptions, subsequent performance points are underutilized. This results in missed deadlines and delayed delivery times.

4. Redundancy points

Redundancy points serve to secure service delivery. This security is provided in the form of parallel points that can be used as alternatives if a service point fails. However, instead of full redundancy, it is often sufficient to secure only part of the service point repeatedly.

5. Delay points

Delay points are performance points that frequently fail to meet specified deadlines or even exceed them significantly. A higher level of material buffers and more effective planning of performance points can, for example, eliminate delay points.

6. Main cost centers

Main cost centers account for the largest share of logistics costs. Depending on the company, the main costs are distributed proportionally across different areas. Improved organization and restructuring can unlock potential for cost reduction.

For more information, see Benchmarking.

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