Setting the Standard — Penske Lays the Foundation for Measurable Results - Mission Foods - Page 3 of 5 - Logistics Case Studies

Setting the Standard — Penske Lays the Foundation for Measurable Results

Penske’s first task was to establish key performance and financial indicators (KPIs and KFIs) as benchmarks for measuring success. To do this, Penske became a participating member of Mission Foods’ budgeting team. Partnering with the same people responsible for evaluating the overall financial performance of each plant allowed Penske to quickly identify areas of joint concern.

Together, Penske and Mission Foods established benchmarks, such as transportation cost per pound, variable impact of volume, cube utilization per trailer, average miles per gallon of fuel and transportation delay times. Using these benchmarks, plant inefficiencies or problem areas would be immediately apparent to the organization, allowing Penske to resolve transportation issues with minimal financial impact.

After establishing KPIs and KFIs, Penske’s next task was to implement uniform technologies and tools that would track and measure each indicator. Penske’s proprietary Logistics Management System software would be implemented at every plant.

Using these technologies, Penske would be able to centralize management of freight, carriers and information throughout the transportation network. Transportation information would be shared throughout Mission Foods’ manufacturing and sales organizations. Visibility of inbound and outbound shipments would be increased, allowing Mission Foods to track, anticipate and avoid shipping delays.

As Penske took over transportation operations at each plant, it began working with the plant’s existing staff on the use of new technologies. Penske also worked closely with the company’s purchasing organization to instill new ordering processes that communicated order quantities, priorities and required delivery times throughout Mission Foods’ production and transportation operations.

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