Representative engagement

Benchmarking Distribution Network Costs Against Comparable Operators

An opinion survey of operators running networks matched to the client’s own

The challenge

Published benchmarks lose the room the moment they are questioned

A consulting case team was running a cost review of a client’s distribution network, the depots and routes that move goods to customers. The team needed cost figures the client’s own operations leadership would accept as a fair comparison. A benchmarking study bought off the shelf carries an average across networks that do not resemble each other, and the operations leadership knew that and said so.

The team did not need better averages. It needed a comparison it could defend line by line when somebody who has run the function pushes back. That is a sourcing problem before it is an analytical one. Somebody can model how a network ought to perform; only somebody who ran one can say what theirs did, and under what constraints.

The Nextyn approach

We built the comparison into the screen itself

We ran an opinion survey across a tightly screened panel of people who had operated networks like the client’s: former network leads, site and depot managers, and the planners who set transport and routes. Each respondent’s network was matched to the client’s on geography, on the service it promised customers, and on the shape of the orders it carried.

Definitions traveled inside the questions rather than being reconciled afterward, so the responses were comparable before any analysis began. The screen was strict enough that plenty of willing participants were turned away. A network with a different order profile produces a response that looks usable and quietly is not. Results were reported so that no individual network could be identified.

The outcome

The benchmark survived the room it was built for

The client’s operations leadership accepted the comparison, and the discussion moved on to the gap between the two. That shift is the whole return on sourcing it this way. The figures broadly supported the case team’s working view, which mattered less than the fact that they could now be discussed at all.

The panel design turned out to be reusable. It became a template the practice applied on later network reviews, so the cost of building it was carried once rather than repeated.

Related reading

More on building a comparison that holds up in the room

Writing from the Nextyn desk.

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