On-time delivery is a must within the supply chain. But ask a dozen supply chain professionals how they measure whether orders are delivered on time and you will get tig different answers. To avoid customer confusion, it pays to look within your supply chain at how they measure whether an order is on time.
Variables
It seems very simple: if an order arrives within the promised time, it’s considered an on-time delivery. Right? In principle, that’s correct, but a number of common variables need to be taken into account. For example, is it still considered an on-time delivery if 95 per cent of the order arrives on time and the remaining 5 per cent is delivered later? What if the customer expects an order on 3 February, but is also happy to accept delivery between 1 and 4 February? Are you still on time if you deliver on 4 February? Or has the delivery date actually already passed?
Standard agreement
Given all the different variables and customer expectations, it is worth establishing clear agreements on this before the contract is signed. Only once you know how to measure something can you assess whether you are meeting the target. This does not mean that separate agreements must be made for every customer. You can include the definition of on-time delivery as standard in the framework agreement or in your company’s terms and conditions.
Do you factor in delays?
Within the supply chain, it is sometimes argued that on-time delivery isn’t the most important factor, because customers actually expect delays to be common. This is a completely mistaken way of thinking, as it means your supply chain is simply not functioning properly. Time is money, especially in logistics.
Editorial LogistiekProfs
