Logistics controlling

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Logistics controlling is the application of general controlling to logistics .

General

The task of logistics controlling is to plan, monitor and control the complex and high performance requirements of logistics, its systems and sub-areas. For this purpose, logistics controlling collects various data and generates information from it. This information is used to optimally achieve all logistics goals by coordinating logistics management . Every company needs an individual logistics controlling that is tailored to its special needs and requirements.

Challenge and need for action

Logistics is a service that provides very heterogeneous services that are distributed across the entire company. Transparency, controllability and leadership skills are therefore not a matter of course and can therefore only be achieved through active, far-reaching and sustainable measures. With falling market prices and decreasing margins , the cost pressure on companies increases and forces them to optimize their materials management . The challenge of logistics controlling is to sustainably improve and optimize logistics processes on a strategic and operational level and to quantify the services provided.

goals and tasks

The overriding goal of logistics controlling is to achieve permanent and sustainable economic efficiency control through constant target / actual comparisons of costs and services as well as the procurement, compression and provision of decision-related information. Here, the different perspectives in the company must be taken into account and the information relevant to them must be made available to the different target groups. For example, the management level has a different problem horizon than an operational logistics manager. The goals of logistics controlling are divided into strategic and operational goals. Successful strategic logistics controlling is based on a competitive logistics strategy, at least one effective management tool (e.g. balanced scorecard ), the adaptation of the logistics organization and the personnel organization. The objectives of operational logistics controlling are to create continuous cost and performance transparency for the entire supply chain , to develop reliable operational key figures and to report to analyze the causes. The installation of control loops makes the entire value chain transparent and the processes controllable.

The logistics controlling model

The generic model of the logistics controlling process describes the area of ​​activity of logistics controlling in the company. The profile of an effective and efficient logistics controlling is mapped in the dimensions of the model, which describes the task area of ​​the logistics controlling in all company processes, in the whole organization and in the management process.

Business processes dimension

This dimension describes the three large basic processes of corporate logistics. Procurement, production and distribution enable a value creation process in the company that should lead to the fulfillment of customer expectations. In order to achieve a sustainable effect, logistics controlling must map these three basic processes using key figures.

Organization dimension

The sequence of processes, the structure of the organization and the importance of logistics controlling in the organization determine the framework conditions for logistics controlling in the organization. The organizational anchoring of logistics controlling in the company is primarily based on the ability to provide current process-related information and its immediate forwarding to the management level. Logistics controlling must be represented in all hierarchies of the organization so that the requirements for effective and efficient logistics controlling are met. Like any other organizational unit, logistics controlling requires a defined task area and the necessary implementation skills. In this sense, the logistics controlling is also responsible for the achievement of the logistics goals, which have to be in the interests of the whole business.

Dimension management processes

The focus of the management process of logistics controlling is the definition of logistics goals, the recording of data, the analysis of information, the initiation of improvement measures and their sustainable safeguarding. This controlling process describes a closed control loop, which enables a sustainable and targeted optimization of the logistics.

Definition of logistics goals

The necessary logistics goals are derived from the corporate strategy. The question could therefore be: “How can logistics support the strategic goal?” When determining the earnings contribution of logistics, it is important to assess the strengths and weaknesses in your own company and to determine the external opportunities and risks in the market. With the help of this input, effective logistics goals can be developed. When defining goals, the strategic key factors or key performance indicators (KPIs) must also be identified. By means of cost and performance accounting for logistics, key figure systems can be developed, which should make the weak points in the logistics system transparent. These key figures or key figure systems are used as measuring instruments. Particular attention must be paid to the selection of the key figures. We recommend a company-specific mix of structural and framework indicators (scope of tasks and capacities), productivity indicators (productivity of personnel and work equipment), economic indicators (logistics costs of service units), quality indicators (degree of target achievement). Furthermore, the mix of key figures should consist of early and late indicators, short and long-term as well as monetary and non-monetary indicators.

Selected key figures are

Collection of data

The cost of data acquisition must always be in a reasonable ratio to the benefit of the key figure. The most recommended variant is to use existing data from the IT systems. The existing results of the measurement are to be converted into the planned key figures.

Analyze the information

In this phase, the data collected is collected, compressed and evaluated. The key figures obtained are to be compared with the respective references. Depending on the measured variable, ex-post target / actual comparisons, time comparisons, or company-internal or external comparisons, e.g. B. by means of benchmarking. In addition, analysis methods such as “brainstorming” or “Die-5-Whys” can be used to interpret the data. The aim of these creative techniques is to recognize connections, correlations and their strengths of influence. The outcome of this phase should be the verification of root causes.

Initiation of improvement measures

The phase of implementation of improvement measures follows the analysis phase. Responsible persons are to be named in order to plan and manage the measures in a targeted manner. When carrying out these measures, the processes must be monitored continuously and the performance provided continuously measured. The data for generating the key figures are recorded continuously and uninterrupted.

Sustainable securing of results

In order to ensure the sustainability of every improvement initiative, every optimized process should be standardized. In the event of deviations from the standard, appropriate countermeasures are taken. This phase is particularly important for organizational learning, as the measures taken can be checked for their effect. If the improvement measures taken do not show any long-term effect, further measures can be taken to close this gap.

literature

  • Torsten Czenskowsky, Jochem Piontek, “Logistics controlling: Market-oriented controlling of logistics and the supply chain”, 2nd updated and expanded edition, Deutscher Betriebswirte-Verlag, Gernsbach 2012, ISBN 978-3-88640-153-6
  • Jürgen Weber, Hannes Blum, "Logistics Controlling: Concept and Empirical Status", Wiley-VCH, Weinheim 2005, ISBN 3-527-50164-9
  • Jürgen Weber, Carl Marcus Wallenburg: “Logistics and Supply Chain Controlling”, 6th completely revised edition, 2010, Schäffer Poeschel, Stuttgart 2010, ISBN 978-3-7910-2656-5