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Paper Released on Order Performance Execution Metrics for Plants and Warehouses

Tuesday, September 23, 2008

Four industry associations have collaborated to create comprehensive metrics for order performance execution in both production plants and warehouses. The associations are the Order Fulfillment Council (OFC) and the Supply Chain Execution Systems & Technologies Group (SCE) Industry Groups of Material Handling Industry of America (MHIA), the Manufacturing Enterprise Solutions Association (MESA) International, and the Warehousing Education and Research Council (WERC).

The associations have released their first paper, Improving Order Execution Performance: A Holistic View of Metrics Across Plant & Warehouse. The paper outlines a framework for creating harmonized and holistic views of performance in several major execution functions in a supply chain:

  • Customer-facing metrics: order fulfillment, and mass customization or flexibility
  • Internal metrics: inventory management and execution productivity
  • Metrics that have an impact on both customers and internal processes: quality and compliance; and business and financial

The paper was developed for the organizations by three independent researchers: Julie Fraser, Cambashi; Kate Vitasek, Supply Chain Visions, and Dr. Karl Manrodt, Professor at Georgia Southern University.

Improving Order Execution Performance: A Holistic View of Metrics Across Plant & Warehouse is available through each of the four sponsoring organizations. For the OFC and SCE groups of MHIA, it is available on the MHIA Bookstore for a non-member price of $50. MHIA members that are not members of the OFC and SCE groups can receive the report for member pricing of $25.

OFC, SCE, MESA and WERC will conduct research using these metrics starting in 2009. This will be an extension of the current WERC Watch benchmarking studies as well as MESA's Metrics that Matter series. This agreement between organizations also had an impact on the benchmarking study WERC Watch 2008 released this past spring, which is based in part on these newly-agreed upon metrics.

About OFC
The Order Fulfillment Council (OFC) is dedicated to developing properly applied order fulfillment solutions. OFC's members achieve this mission through Education and Membership Development including educational and training resources for end users, educational institutions, allied organizations, and its own members to properly understand and apply order fulfillment solutions. OFC is an Industry Group of Material Handling Industry of America (MHIA). For more information, visit www.mhia.org/ofc.

About SCE
The Supply Chain Execution Systems & Technologies Group members are the Industry's leading suppliers of Supply Chain Execution software, hardware and services. They supply solutions worldwide and in virtually every major manufacturing and distribution sector. SCE is an Industry Group of Material Handling Industry of America (MHIA). For more information, visit www.mhia.org/sce.

About MESA International
The Manufacturing Enterprise Solutions Association (MESA) is an association of manufacturers/producers, solution providers and industry professionals, promoting innovation and best practices sharing, with a goal of delivering valuable knowledge around operations-centric enterprise solutions.

MESA defines industry standard methodologies and approaches that allow manufacturers/producers to bridge execution excellence with enterprise level requirements. MESA's industry events, symposiums and publications help cultivate understanding, analysis and the exchange of strategies and innovation to achieve manufacturing leadership. For more information, visit www.mesa.org.

About WERC
The Warehousing Education and Research Council is the only professional organization focused on warehouse management and its role in the supply chain. WERC is where distribution experts come together to share practical knowledge and professional expertise with the aim of improving individual and industry performance. Through membership in WERC, seasoned practitioners as well as those new to the industry stay at the forefront of innovation, master best practices and establish valuable professional relationships. WERC focuses on practical operations within the context of strategic global matters like technology, globalization, infrastructure, workforce management and legislation. WERC offers unique resources that help distribution professionals stay at the leading edge including educational events, practical research, expert insights and peer-to-peer knowledge exchange.

Contact: Carol Miller, Vice President of Marketing & Communications, Material Handling Industry of America (MHIA) (704) 616-1190/800-345-1815 / cmiller@mhia.org

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