On time delivery

Customer relationship is heavily influenced by customer delivery performance i.e. constantly measure your delivery performance.

Usual measurement is actual delivery date versus customer requested date … and usually also against the promised supply date.

Good on time delivery also means you managed to get your revenue in time.

A typical way to bucket performance is by major performance …

  • Early … shipment or docking was done too early. This can cause space or finance issues.
  • On Time … the ultimate customer satisfaction.
  • Late … which can cause severe customer production issues and / or claims.

What is typically being measured …

  • Actual delivery date compared to the customer requested delivery date (CRSD)
  • Actual delivery data compared to the manufacturer re-scheduled delivery date (MRSD)

What are the usual metrics …

  • Most used is measuring number of shipments or deliveries.
  • Sometimes, measurement of number of products delivered is being used.
  • Financially, measurement can be value of the products delivered … a typical internally focussed measurement as it detects optimization of company finance. Good delivery is also good cash flow 🙂

Some examples of graphs …