LOGISTICS STUDY: BEING ON TIME IS KEY ELEMENT

SARAH MULHOLLAND

ATLANTA -- A new logistics study conducted by the Georgia Institute of Technology here reveals that being on time is one of the most important factors in rating transportation performance.

The Logistics Institute at Georgia Tech released the results of a focus group examining top performance indicators and selection criteria in transportation management.

Ranking right behind timeliness was:

Total transportation costs.

Quality/damage claims.

Safety.

Asset utilization.

Perfect documentation.

Communication.

Turnover of transportation personnel.

Customer complaints.

The group, which included representatives from 17 companies including Kraft Foods, Fleetguard and Avon Products, explored issues surrounding transportation, network modeling tools, distribution sites, freight forwarders and carriers.

When choosing a logistics network modeling tool, the group recommended a careful analysis of the total cost of software, hardware and implementation, system compatibility, and customer service and support operations.

At the top of the list of criteria to be used when choosing a distribution site were the availability and cost of real estate and labor, infrastructure, proximity to customers and suppliers, and the local regulatory and political climate.

When choosing a freight forwarder, cost made the top of the list, along with tracking capabilities, reputation, experience and origin.

In choosing a carrier, on-time delivery, cost, safety, tracking, reliability and reputation were among the top things to look for, according to the results.

The focus group was conducted as part of the Logistics Management series of courses at the Logistics Institute, and was led by Dr. Ed Frazelle, director of the series and president of Logistics Resources International, Atlanta.