A potential analysis is a comparison of a company’s performance with the requirements placed on it. In logistics, it is also referred to as a logistics audit and is used as a forward-looking, strategic planning tool. It involves reviewing the processes and structures of the current situation and comparing them with the target situation. This allows weak points to be identified, corrected, and adapted to new structures.
The general objectives of potential analysis are:
- Identification of potential areas that will achieve the greatest optimization effects
- Visibility of weak points in potential areas
- Identification of possible scope for action
Potential areas in the field of logistics could, for example, lie in the use of freight forwarders and service providers or, with regard to intralogistics, in the use of certain logistics centers or distribution centers.
In detail, such an analysis includes a requirements analysis, a performance analysis, a process analysis, a structural analysis, and benchmarking. This ultimately results in a strengths-weaknesses profile, which in turn reveals opportunities and risks for a company. For this reason, the term “SWOT analysis” (Strengths-Weaknesses-Opportunities-Threats) is often used.
The steps involved in a potential analysis
The individual steps include the following points
- Analysis
- Definition of objectives
- Strategy development
- Strategy implementation
It is well worth having a potential analysis carried out by a competent consulting team. The effort involved is relatively low compared to the potential cost savings that can be achieved. This usually results in cost savings and performance improvements. Logistics goals can thus be expanded and competitiveness improved.
For more information on potential analysis, see Performance Analysis.
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