Most distributors spend a lot of time developing sales projections and budgets for expenses. Each month these forecasts are compared to actual sales and expenses. If sales are lower, or expenses higher than what was projected, management will usually take corrective action to ensure that the company remains profitable.
I'm asked all the time how I stay abreast of things in a constantly changing world, and how I have the basis to challenge fads and unsubstantiated claims. (The other day an authority in our field told me that "the entire face of consulting is changing" and I told him he was spewing bromides, not facts. Be careful out there.)
The following article was written by Joseph Francis, Executive Director of The Supply Chain Council:
There are two themes I see emerging in conversations I have had with companies lately on benchmarking: First, is the lack of detailed data in SCORmark for their particular industry. Second, is the difficulty in interpreting benchmark data, and understanding their own company performance.
Recently, I came across a production manager at a conference and was engaged in a conversation. It was evident to me from the way the manager was talking that he was excited. He thought he had found a way to really enhance the effectiveness and efficiency of his operations that could give his plant a true competitive advantage. He had just received a mailing sent out by a well-known professional society. The organization had developed numerous benchmarks, along with guidelines on how to implement them.
Most of our attention to the audit process in this publication has been focused on “how to” but, underlying all this commentary is “why?” Auditing any operation is hard work. Indeed, some may believe that there are insufficient potential results to justify the effort involved. Just as people get sick, warehouses have the ability to slip into trouble.
