Do best practices matter?

People are always looking for ways to measure and fine tune their performance.

By Gary Forger, Editorial Director -- Modern Materials Handling, 3/1/2007

Best practices in materials handling and the supply chain are a funny thing.

On the one hand, the idea seems so straight forward. Here’s the best way to do whatever. On the other hand, what works as a best practice for some companies does not translate well to others. Is it really a best practice, then?

In fact, there are some people who question whether best practices actually exist. I’m referring to a column written by Dan Gilmore in Supply Chain Digest ( www.scdigest.com/assets/FirstThoughts/07-02-01.cfm) about a panel discussion he led on the subject. To his surprise, one of the panelists described best practices as “baloney.” And that panelist wasn’t alone in dissing best practices that day.

Interestingly enough, Gilmore has taken some heat for even repeating the story. And fanning the flame(s) a bit, Tompkins Associates sent out a newsletter ( www.tompkinsinc.com/sc_edge/SCE_0207.html) linking to Gilmore’s article asking people what they think.

The fact is: Best practices matter. People are always looking for ways to measure and fine tune their performance. All you have to do is look at all the clicks Modern gets on its monthly best practices e-newsletter ( www.mmh.com/subscribe.asp).

But best practices are not the only way to measure performance. There are plenty of metrics that can help. The trick, as consultants Kate Vitasek and Steve Symmes of Supply Chain Visions ( www.scvisions.com) point out, is to pick the right metrics.

In a recent column in Lehigh University’s “Center for Value Chain Research Newsletter” ( www.lehigh.edu/~inchain), they talked of how so many companies are focused on fill rates. Yet customers are still not happy.

The reason, they say, is fill rate is one of multiple metrics important to customer satisfaction. “While companies often track a variety of delivery performance attributes with suppliers; almost all would agree that orders must be on time, complete, and damage free and must have accurate documentation. That is the perfect order. These four attributes are the most critical,” say Vitasek and Symmes.

Yes, people are fascinated by the various options to measure performance. And that’s exactly what we were thinking when we launched our Industry Survey Series in January with a look at general industry ( www.mmh.com/article/CA6403389.html).

This month we have the second installment—a look at the automotive industry. The story (page 20) takes a close look at that industry’s most important practices, metrics and issues as well as materials handling buying trends. Our next one is in May on food and beverage. We hope the series helps you fine tune the important measures of your operational performance.