OCTOBER 2024BUSINESSMANAGEMENTREVIEW.COM8By Joshua Gore, Director of Sunland Management Systems, Sunland Logistics SolutionsBUSINESS PERFORMANCE MANAGEMENT: A SYSTEM TO ACHIEVE SUCCESS THROUGH THE CONSISTENTLY INCREASING CHALLENGES OF THE LOGISTICS & SUPPLY CHAIN INDUSTRYThird-Party Logistics (3PL) is the lifeblood of all supply chains, ensuring the seamless movement of goods from manufacturers to consumers. Effective Business Performance Management (BPM) is crucial as 3PLs expand into regional, national, and global markets. This article explores BPM within the 3PL industry by taking a look at how Sunland Logistics Solutions monitors its five major Management by Objectives (MBOs) which are aligned to the key components of its business system.Sunland's Business Performance Management department utilizes the cloud-based project management platform / CRM platform, Monday.com, to track and monitor MBOs across its network of warehouse operations and customer accounts in real time, while managing several of the industry's key challenges.1. HIGH PERFORMANCE TEAM (HPT):A High-Performance Team is the critical starting point for success in the 3PL industry, exhibiting synergy while working towards a common goal. 80% of success depends on the Team and 20% on Process & Technology. By establishing precise and measurable MBOs for specific key performance indicators (KPIs) such as Injury Frequency Rate (IFR) reduction, Sunland can prioritize employee safety and well-being, fostering a safer workplace environment. Simultaneously, tracking Employee Retention allows Sunland to measure employee satisfaction, engagement, and long-term commitment. This dual approach not only reduces workplace injuries and costs but also retains skilled talent, resulting in improved safety, lower absenteeism, higher team morale, and a stable, productive workforce.2. PROCESS LEADERSHIP (PL): Efficient process leadership is crucial for smooth logistics operations. Utilizing Business Performance Management (BPM) to monitor PL (MBOs) Process Execution and Process Auditing will yield significant benefits from workflow efficiency, error reduction, and cost reduction ensuring compliance and quality control. Process documentation and process auditing drive standardization of key processes to guarantee consistency and foster continuous improvement that will make Sunland more agile in responding to its customers' evolving needs and providing scalable solutions.3. ADVANCED TECHNOLOGY & INNOVATION (ATI): Leveraging Business Performance Management for Advanced Technology & Innovation MBOs leads to a better understanding of both internal and external customers. Clear Internal Surveys MBOs measure employee feedback, fostering an innovative workplace culture. Simultaneously, tracking Customer Survey feedback aligns technological advancements with stakeholder needs. This integrated approach enhances responsiveness, encourages innovation, and results in higher customer satisfaction, loyalty, and sustained growth.4. QUANTIFIED VALUE TO CUSTOMER (QVC): 3PL companies aim to deliver quantifiable value to customers, and BPM is essential for achieving this goal. Sunland measures quantifiable MBOs, such as Annual Customer Satisfaction Surveys, to enable systematic measurements and responses to customer feedback, aligning products and services with expectations. Simultaneously, they track Customer Retention metrics to enhance understanding of loyalty and long-term engagement. The result: enhanced satisfaction, brand loyalty, and an improved "Servant Leader" mindset. BPM keeps Sunland agile and customer-centric, driving sustainable growth by delivering quantifiable value to customers, especially in Sunland's case as its company purpose is "We help our customers do what they do...better."Joshua Gore
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