Parcel - November 2008 - (Page 12) 2008 SURVEY RESULTS Performance Measurements Labor: $8 $7.87 6.3% $6.48 2006 8.6% $5.21 2005 9.4% 2004 10.4% ‘08 2008 2007 8.9% $6.72 80 70 60 50 40 30 20 10 0 $7 12 9 6 >> On average, it takes 2.5 hours to process a shipment from picking to loading. 3 2.5 HOURS $6 $5 $4.81 $4 ‘04 ‘05 ‘06 ‘07 >> The cost to process an order climbed this year to $5.21. >> The cost of labor as a percentage of company sales decreased in ‘08. Cycle Time: 5.0 Total Error Rate: 1 Other Manufacturer Retail Overall 0.95 0.89 0.88 0.78 0.62 0.21 0 Return Rate: 3 Wholesale Retail Overall Manufacturer Other 3PL 2.47 2.42 2.08 1.62 1.50 1.00 2.3 Internal Wholesale 3PL 0 >> The in-transit cycle time is increasing slightly, as fewer shipments go via air. >> For the first time, error rates dropped below 1.0. >> Return rates also dropped from last year, when the average was 3.22. Carrier Claims 2007 37% 2008 54% >> The percentage of claims being paid by carriers jumped from 37% to 54%. >> For every 100 carrier invoices, 5.9% have errors, a reduction from 2007’s 8.9%. 80 Managers’ Responsibilities 70 12% 32% 67% 60 50 40 30 42% 46% 38% 32% 23% 33% Manage All Functions Manage All Except Order Entry and Returns 20 10 0 O r r de En tr y e ar W ho us e c Pa ka gi ng D oc k a Tr / g in n pp io hi tat Sr po ns Re tu rn s O th er >> As the parcel process becomes more demanding, duties are being split as fewer managers are in charge of all functions. 12 November 2008 www.PARCELindustry.com http://www.PARCELindustry.com
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