Delivery reliability needs the right performance measurement to lead to the right decisions, and improvement actions When comparing on-time-delivery rates between companies, there are often confusions, irritations, and surprises. Reason is that the metric reflects the way of measurement of the real situation, not the real situation itself. And there are plenty of definitions of the delivery time window, and how a delivery is measured to be on time. It should be all based on the requirements of the customer who receives the shipment. If he needs it in a hourly time interval, that defines how to measure. In other cases with more tolerance, the actual day can count. And sometimes it can be a few days early, but not one day late. This is where definitions vary, and thus the measured value of the metric might also vary, or indicate very different performance levels. Even today, we find that companies measure on-time delivery based on their factory shipment date, plus the average transport time. But given today’s congestions on motorways, delays of trains, and even obstacles in air and barch cargo, that is not sufficient to draw the right conclusions, and to implement the right corrective actions. Part of the selection criteria for transport service providers should be the capability of online monitoring of the shipment status, and also of goods delivery. This is linked with internet or cloud based solutions in which the receiving customer confirms the receipt, and also the inspection results (if incoming goods inspection is still agreed, and not assured by supplier shipment processes).
On - time 95% On - time 90% Warehouse Ramp Transportation Goods entry customer Quality  approval customer Filling On - time 95% On - time 82% On - time 80% Sphere of plant Sphere of service provider Estimated value („internal expert view“) Measurement by customer Measure at the right point, and with the right method.
Delivery reliability starts with the end in mind … and then looks for the risks, and how to control them Delivery reliability is a key prerequisite to operate a chain of supply chains - only synchronizatinon based on simultaneously adhered timings allows to run a proper sequence. If one in the chain fails, the others fail. Either in time, or in the need to build buffers which have the risk of becoming obsolescent. It is not only about being fast - but it seems, the faster the chain gets, the more important is the reliablity. But this is a wrong perspective, as the only thing that counts is the tact, the “clock speed”. This is where the reliable delivery is key. To manage the chain, observing own delivery reliability as well as received from suppliers, is a core foundation to operate the supply chain effectively, and efficiently. Besides buliding IT-enabled process platforms which allow fast, swift, nimble, and responsive delivery processes, the risk associated with every single step need to be evaluated, and according measures for risk mitigation need to be developed, and - when necessary - quickly taken With our IN-NOVA method on planning excellence, we have build a systematic bridge between the sales, and the supply markets. Please contact us if you want to learn more about how you can use this for the benefit of your operations.