Liquor Commission contract sets performance standards
March 08. 2014 8:59PM
CONCORD - The contract between the New Hampshire Liquor Commission and its new warehouse operator sets very high standards for performance.
Allowing for problems beyond the reasonable control of Exel, such as power failures, unusually severe weather or natural disasters, the company is expected to achieve 99 percent compliance with four "Key Performance Indicators."
-- Goods available for shipment on time: Goods received by 3 p.m. will be available for shipment for 11 p.m. that day, with the exception of products that require special handling.
-- Goods loaded for shipment on time: Product must be loaded by the time mutually agreed to by the transportation provider.
-- Inventory accuracy: Quantities counted have to match quantities listed in the inventory system.
-- Order accuracy: For each item in an order, the product and quantity picked must match the product and quantity ordered.
The commission has not been receiving the reports on those requirements, but expects to soon.
"The reporting mechanism has not been finalized," said NHLC Chief Operating Officer Craig Bulkley. "We're working on that right now."
Based on an informal process for tracking deliveries, Bulkley estimated that Exel is currently hitting the 90 percent mark for timely and accurate deliveries to licensees such as grocery stores, restaurants and hotels.
In the four months since the transition to Exel from Law Warehouses began, an average of 130 orders a day are shipped from the new Exel warehouse in Bow, with anywhere from 10,000 to 13,000 cases in transit.
So even if Exel is hitting 90 percent accuracy, that could still leave an average 13 customers a day unsatisfied with the timeliness or content of their NHLC delivery. Bulkley points out that some or even all of that 10 percent estimated failure rate could be due to factors beyond Exel's control.
Lynn Anderson, vice president of communications for the Exel Supply Chain, said it was always the company's understanding that the Key Performance Indicators would not come into play until the transition from Law was complete.
"We are currently continuing to transition product into the Bow warehouse from other sources and won't be at what is considered steady state until all product is in the Bow warehouse and in our scope," she said.
- Dave Solomon New Hampshire Union Leader