Dr. Ed Frazelle, director of the series and president of Logistics Resources International, led the group, which included representatives from Cargill, Case, Celiant Corp., Clorox, Corporacion Supermercados Unidos, C-P Flexible Packaging, Defence National Stockpile Center, Diageo, FedEx Supply Chain Services, W. Grainger, JMAC Consiel S.p.A., Kohler, NCR, Newark Electronics, Office Depot, RBX Industries, Russell Athletic, Schneider Logistics, Team S.A., Thomas & Betts, Tiffany & Co., Transentric, the U.S. Army, U.S. Marine Corps, U. S. Department of State, Vaisala, Vistakon, and XonTech. Among the findings of the focus group were the following.

1. Data requirements and profiles for reverse logistics planning.

Participants were asked to determine what data requirements are involved with reverse logistics planning and to identify the factors that generate disproportionate returns activity. Potential problem areas pinpointed included: certain customer groups, particular SKUs, and individual suppliers. Each category could, the group felt, account for higher-than-normal returns.

2. Logistics performance metrics.

"Developing and implementing a logistics performance measurement program with appropriate performance targets for each metric is perhaps the fastest, simplest, and least expensive means of raising total logistics performance," said Dr. Frazelle. "If we can get the right metrics in place, we will yield the right behaviours."

The focus group developed and ranked a list of key logistics performance indicators in terms of their usefulness in monitoring total logistics performance. These indicators included: A. Perfect-order percentage; B. On-time delivery percentage; and C. Inventory accuracy.

3. Criteria for segmenting customer service.

The top three criteria identified by the focus group for segmenting customers into service-level categories were: A. Profitability (profit percentage derived from serving the customer); B. Sales volume (dollar and unit sales derived from the customer); C. Growth potential (customer's long-term potential for increased revenue).

4. Supplier-selection criteria.

"Once customer service performance targets have been developed, supplier selection criteria can be established to ensure the customer service policy can be executed reliably and without incurring excessive logistics costs," Dr. Frazelle stated. "The supplier selection criteria helps to formalize the choice of suppliers to support the customer service policy and those same criteria become the report card for monitoring supplier performance on an ongoing basis."

The following are the focus group's top three supplier-selection criteria: A. Total logistics cost, as compared to Receive/PO cost; B. Proximity; C. On-time delivery percentage.