CLX Logistics was consulted to support Philips in its drive for operational excellence by designing a senior management performance dashboard. The dashboard identifies the performance of the different service providers and determines the focus of all parties, strengthened via contractually defined indicators.
CLX Logistics appraised the existing supply chain structure consisting of both National and European distribution centers, each outsourced to different service providers. A standardization of contracts was established in which a comparable tariff structure and a target-driven reward methodology were agreed upon. Finally, the dashboard was constructed and deployed in such a manner that the performance measurement on all essential elements was standardized and used to try to achieve operational excellence.
The ongoing performance measurement and management process is controlled by Philips in cooperation with CLX Logistics. The dashboard is filled in locally on a monthly basis and consolidated into an overview for European management in order to track financial and operational implications. In order to enhance performance on a continuous basis, structural problems are identified and resolved via a PDCA cycle.