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March 23 , 2010 -

 

Logistics News: Early Results from DC Complexity Calculator

More than 50 Companies have Tested On-Line Beta Version; Insight Emerging on How to Improve, but Need More Reader Feedback



   
 


Cliff Holste, Materials Handling Editor

 
SCDigest Says:
 

Send us your feedback on improvement ideas for the beta DC Complexity Calculator. .


Click Here to See Reader Feedback

Last week, SCDigest and Distribution Digest released a "beta" version of a new Distribution Center Complexity Calculator™, developed as a result of several reader questions about how to measure DC complexity. The catalyst for these requests was often questions about the level of software support (WMS) required to help manage operations (see New Distribution Complexity Calculator Beta Version Released).

We have received several comments and suggestions and more than 50 users of the web version of the calculator thus far. We do not track the specifics of who uses the web version of the calculator, but we do track the numeric responses anonymously (see below).

A couple of observations have come from seeing the early results.

First, the average score thus far is a 54, on a scale of 1-100 (though really the lowest score one can achieve is 18). The high thus far is a 76; there have been a few in the 30s, with the majority in the 45-55 range, and a handful of upper 60s.

What this tells us in part is that the idea of using a 1-100 score to reflect our normal sense about "grades" is probably not going to work. Absent some changes, the average DC is going to score about 50, which actually makes quite a bit of sense.

As we have thought about it some more, we also believe that there is probably no existing DC that would score more than about 85-90 on this scale, because no one is at the max across all attributes (though we really are checking with Walmart and others of that sort to confirm that assumption).

Below, you will find a graphic of the average scores thus far on each of the 18 attributes. The color of the bar indicates whether the average of the scores thus far, through 55 calculator takers, are above (red) or below (dark blue) the midpoint of the scale (i.e., 3.5 on a 1-7 scale).

We may make some adjustments based on this; for example, shifting the number of suppliers managed to the right (in effect adding a point to most takers).

This truly is meant to be a collaborative effort; we need your comments and feedback to come up with the final DC Complexity Calculator 1.0. Please send your comments here: feedback@scdigest.com.

Below is the data thus far. On the bottom half of the page is the calculator itself.

 

 

 

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The web version of the complexity calculator is below. Enter a value for each attribute, and then click the "Calculate Total Score" button at the bottom of the form.

Alternatively, you can download the actual spreadsheet: Distribution Center Complexity Calculator Spreadsheet.

The total complexity value is not meant to be a precise number, but rather to represent a reasonable estimate of the complexity of a given DC, and we think the result will well quantify the differences in operational complexity between different distribution centers and their operational requirements.


DC Complexity Calculator™

 

 
 

What do you think of the new DC Complexity Calculator? What would you add, change, delete, etc? Please send us your ideas at the Feedback button below.

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