On-time deliveries

Do delivery systems support 100% on-time deliveries to meet customer production and service requirements ... 

The standard requires the supplier to require 100% on-time delivery performance from subcontractors. 

A 100% on-time delivery performance means that your subcontractors must deliver supplies within the time window you specify. Unless you so specify, they do not need to operate a just-in-time system but it is obviously less costly to you if they do. It all depends... 

In order that your subcontractors can achieve 100% on-time delivery, you need to provide the same type of information and make the same commitments as your customer will to enable you to meet 100% on-time delivery to them (see Part 2 Chapter 15). You therefore need to inform your subcontractors of your production schedule and release orders to your subcontractors based on that schedule. If operating under a ship-to-stock system, you will need a means of notifying your subcontractor when stocks drop to the minimum level. Under such arrangements, you do not need a purchase order for every delivery as one order specifying the shipment rate will suffice. A good maxim to work by is ... 

How do you ensure your subcontractors achieve 100% on-time delivery ... 

Whether or not 100% on-time delivery is a requirement of your customers, you won t retain customers for long if you continually fail to meet their delivery requirements, regardless of the quality of the products you supply. It is only in a niche market that you can retain customers with a long waiting list for your products. In competitive markets you need to exceed delivery expectations as well as product quality expectations to retain your market position. 

Offer incentives Go beyond the scope of the original contract and offer a bonus or other incentive for on-time delivery. X X... 

Key Performance Indicators (KPIs) in supply chain balanced scorecards and performance management are one example for analysis methods. Beamon (1998) and Chan (2003) distinguish qualitative performance measures such as customer satisfaction, on-time delivery, fill rate or flexibility as well as quantitative measures based on costs in distribution, manufacturing and inventory or warehousing. 

Reduction of Inventories Advancements in process control and changing acceptable risk standards may have removed the initial justification for large inventories of hazardous raw materials or products. For example, tight quality control of on-time deliveries of hazardous raw materials may allow for a one or two day supply on hand versus a one- or two-week supply. 

Are you the only supplier who can guarantee on-time delivery and sufficient default production capacity ... 

Omnexus 32, 35, 80, 84, 85, 89 On-time delivery 145, 153 Operational change programs 155—161. see also Production... 

As mentioned above, one other big lever is to optimize product and information flows, taking a cross-functional view of the entire supply chain from the original supplier to the end customer. This can reduce inventory levels substantially, as well as smoothing out production instability and its associated costs. It also often helps to improve levels of customer service, such as on-time delivery, and capacity utilization. 

If validation is not a key objective for the project, on a par with on-time delivery and within budget, the likelihood is that validation will not be adequately conducted. On far too many occasions, validation is crammed into the last part of the project, and it is only when notification of an inspection arrives that real attention is focused on validation. A rushed validation effort will often result in poor evidence, which will present a poor impression to a regulator. Thought should be given at various points throughout the project as to the level of quality of the validation documentation being produced. It is too late to resolve poor quality validation evidence immediately prior to inspection. 

On-time delivery From where is the customer order originating Is the network configuration such that the customer is receiving a shipment as quickly as possible ... 

From this two-way table, it can be seen that these sideline deliveries are strongly associated with late deliveries. This can be seen by looking at the ratios across the table. For the on-time deliveries, 1 out of 16 were associated with special deliveries for the late dehveries, 19 out of 30 were associated with special deliveries. Furthermore, the team looked into the portion of these dehveries from each warehouse and saw that location 2 had experienced an increase in these kinds of shipments, while location 1 had seen no change recently. 

After the system selects the best transportation mode, it determines the best travel path, which loads to deliver first, and which orders should go on the trucks first—an important consideration since customers do not want to hold inventory, making scheduling much more significant due to the pressure to meet on-time delivery (Dilger 1998). 

Customer service What is the probability that this relationship will substantially improve the customer service level as measured by the customer, for example, improved on-time delivery, better taking of movement, paperless order processing, accurate order deliveries, improved cycle times, improved fill rates, customer survey results, and process improvements ... 

For shippers and transportation providers, an important metric is the total supply chain cost of transportation transactions. This total supply chain cost includes the effect on both transport costs and associated inventory costs. In addition, measures of performance include delivery lead time, percent on-time delivery or delivery within time windows, and schedule flexibility to accommodate shipment reschedules. Given the large volume of shipments that occur on dedicated contract trucking, there is scope for use of information, coordination agreements, and associated capadty commitments to improve performance across a supply chain. Competing carriers sell bundled routes to minimize shipper costs. 

Reynolds achieved a 7 million annual reduction in transport costs, which consisted of a 70% reduction due to volume buying, and a 30% due to a 600% increase in continuous moves while increasing on-time delivery from 80% to 95%. This was achieved along with reducing the number of transport companies from 200 to 5 van carriers and 8 flatbed carriers. How are such dramatic improvements achieved within a corporation ... 

Dependable andTrustworthy. Civil engineers depend on each other in teamwork. Everyone is entrusted to produce reliable and accurate work. Civil engineering projects are all time-sensitive. On-time delivery is highly valued and even financially rewarded as may be written in a contract. 

Companies also find, as they mature, that it is difficult to get the complement of metrics necessary to view the supply chain as a system. There are six metrics in supply chain management that are tightly woven with intrinsic trade-offs. These metrics are asset utilization, days of inventory (or inventory turns), forecast accuracy, customer service (on-time delivery of orders shipped complete), cost of goods, and revenue growth. 

Improve customer service through increased order fill rate, order visibility, on time delivery. 

If the consolidation center works as a trading company, it needs to monitor the suppliers delivery performance in terms of shortage history, on-time delivery, lead-time, flexibility with respect to volume changes, and so forth. 

Open dialogue with the drivers about concerns that they may have about company policy and the FMCSRs Hours of Service versus on-time delivery, customer expectations, and so forth. 

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