Delivery Tracking - Over Seas Suppliers

[faujix]

Hi all

this is my second post today ! In the four plants that we have , there are a lot of parts received. Some of our major suppliers are in the far east. WE do not have a state of the art supply chain software - we do have a receiving clerk at each one of these planst who receives the parts. How do we measure the delivery performance of these suppliers ? The overseas suppliers have about 3 to 4 weeks of travel on a boat plus a couple of days for customs clearance. also more often than not, the trailer with the parts at the dock is not cleared for two days or so because of backlog etc.

any ideas on this ?

Thanks

[E Wall]

Delivery performance should (as I understand it) be measured based on the required (and agreed) set delivery/promise date compared with actual received dates (not unloading).

Then use a straight % of total shipments Ontime/Late per vendor.

Example:

Suppliers A, B, and C commit/agree to delivery dates. Their performance is:

Supplier Ontime Late Total Shipments Performance
A 7 3 10 70%
B 19 1 20 95%
C 12 3 15 80%

Let's say your company has a goal of 95% ontime delivery - 2 of your suppliers don't measure up and you would initate a Request for Corrective Action to improve on their performance. (ultimately you go with another supplier, if available, when your supplier can't/won't improve their performance). With the trend of Lean Manufacturing requiring reliable JIT from suppliers...Quite a few are redirecting focus on this performance rating.

Hope the example helped, and that I'm not oversimplifying the problem at hand!

Eileen

Eileen,

I think you hit the nail right on the head. Set your standards and measure performance.

[Greg Maggard]

I agree as well. The new company I am with now spends their wheels because the have performance issues on meeting shippments. I was with a compamy that is you spent more that 500.00 monthly on Premium freight or under 97% on shipments Customer was on our backs bad.