Distribution Center Management Balanced Scorecard Approach


distribution center management in a fast paced environment is very challenging. If you work in the retail business, every day is enough that you have to handle thousands of stock keeping units and you need to respond to increasing customer demand. Management logistics needed to balance supply and demand. Because distribution is central, receive / send goods from / to many members of the supply chain.

In the distribution business, you need to control not only the action but also business and earning growth. In order to perform the distribution center management successfully, you need to have a well-balanced approach to team understand, implement and monitor progress. I have developed a sample of strategic distribution center management system with basic Balanced Scorecard is centered on four sides.


This perspective shows you how good logistics is doing. If you have a full understanding of earning now and in the past, you will get a better idea of ​​how much effort you and you team you give in distribution center management. To do this, you should replace the customer in part, collect revenues in the past (for example, 5-year) up to the current period. When you have finished, I believe you should be able to describe two important components, namely well-performing components and overlooked part.

Customer Perspective

For well-performing part, I recommend that you conduct regular customer satisfaction survey to ensure that you will not Miss these things to your competitor. In addition, you should try to bring customer service strategy to ensure that each customer receives a standard response and service. For overlooked part, you need to make customer retention. Just drop by to say hi to inactive customers and listen to their suggestions and comments. This information is very useful and can be used as input to the next viewpoint.

internal business processes

After you get information from both well-performing components and overlooked part, now you should have a pretty good idea of how you should improve your operations. The purpose of internal business process perspective is just to improve operations so you can win new customers and retain existing customers. I have collected a general improvement initiatives Distribution Center management as follows

Process Improvement: This can be done with business process mapping, do not know the value-added activities in the logistics and make change process flow

Quality Management :. you might want to consider the implementation of quality management and quality management or ISO. This is highly recommended if you get a lot of complaints from customers about shipping or document errors

Information :. I personally believe that not every distribution has integrated IT system. Heterogeneous systems creates confusion among processes. For example, if the processing system is separate from the storage system, operators need to do data entry in two different systems to complete the pass. This is time consuming and high cost operation. Investment integrated information should be the one in

Innovation :. Investment in innovation sometimes increase the cost and save costs. However, you must have innovation. Existing customers can run away to a more modernized distribution or you do not have a selling point tent places a new option if distribution is outdated. I would recommend RFID, Status Tracking, Vehicle Tracking and equipment automation to streamline distribution center phone

Cost Management :. Three high cost areas are storage, truck utilization and order picking. These factors much attention

Security and Compliance :. policy of corporate social responsibility is spreading around the world. You may not be able to have business with large customers if you do not pay attention to issues such as workplace safety, road safety, hazardous materials, fire safety, regulatory compliance, and so on. These are not revenue generating content, but they are indispensable.

Learning and growth

You can not do everything yourself, employee business fundamentals. Experienced staff perform tasks properly, satisfy customers and revenue for you. This is the importance of the last perspective.

logistics and supply chain management is a relatively new subject and I believe many staff in logistics have a formal training / education in this field. You should not hesitate to provide employees with the knowledge, it’s fine either on-the-job training or exercise. You should try to inject new ideas and knowledge to the staff as much as possible.

Last but not least, the employee is of the essence. Satisfied employee has the potential to provide very useful information when you make any reform initiative. On the other hand, dissatisfied employee create interference, breaking changes and act unprofessionally customers. Employee satisfaction survey or an employee retention program will help you run your distribution center in a sustainable way.


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