What are the Critical Success Factors in Logistics?
Critical success factor (CSF) is the term for an element that is necessary for an organization or project to achieve its mission. It is a critical factor or activity required for ensuring the success of a company or an organization. The term was initially used in the world of data analysis, and business analysis. Critical success factors are elements that are vital for a strategy to be successful. A critical success factor drives the strategy forward; it makes or breaks the success of the strategy. Strategists should ask themselves “Why would customers choose us?” The answer is typical a critical success factor. “Why would customers choose us?”
There are few factors that have to be involved in logistics to help practitioners focus on this. What
The customer must get what they want, when they want it, and where they want it. This seems simple, if you are in war, simple things are very difficult, and civilian logistics has its own pressures to make the simple more complex than it needs to be. More on that later. Firstly the customer must get exactly what they want. There must be no errors or backorders. Frankly, with an error rate of over 5% its almost time to give up in disgust and start all over. Errors have to be tracked back to who made them, and why they weren't caught out by checks in the system. People make mistakes, and processes have been in place to catch them. And the same goes for backorders. Granted, not much can be done about a late delivery with no warning, but the supplier's actual performance, not promised performance, has to be taken into account so enough stock is held to cover delays. When
Secondly, customers must get their order with the promised time. This means as soon as possible. If the products involved are man-portable, 95% of orders should be awaiting pickup within an hour of the warehouse receiving them. Finally, finally, products must be delivered where they're needed. Where
The third factor is usually more important in the military operations than civilian operations. In the civilian world, making sure cartons are correctly labeled and the transport is competent is enough. In combat logistics however, the location of the end-user may have changed significantly between the time they made their request and the time they get what they need. And there are those dedicated to making sure the products do not get to the end-user. If that isn't enough, the closer the military supply chain gets to the end-user, the more overworked and overstressed the people and equipment making that supply chain work. When the logistic know exactly what the customer want. They also need to set up the goal and let the team to achieve. If the organisation use the below CSF’s factors work together, the results will happen quicker and create a culture of working “smarter and not harder”.
“Why would customers choose UPS?”
UPS based company first established in Seattle Washington, then expanded in the package delivery business over 100 years providing services to businesses and consumers worldwide. UPS focus are very clear, they know that “why would customers choose us”, they have to go forward to this goal, make the strategies, set up the system and train the staff to achieve that goal. Then make them to be “the leading package delivery company.” They realized that the customer must get exactly what they want, when they want it and where they want us. What the customers want it?
UPS has to find the ways to...