On-Time Delivery (Late vs. Delays)

Golfman25

Trusted Information Resource
Different way of saying what I did.........."We put it on the truck, and after that, who knows?" This is especially good if the customer specifies the shipper and routing. A good practice, thanks to digitation, is a time-stamped photo of loading and the installed door seal.
Legally, with the right shipment terms, "delivery" takes place when the supplier puts in on the truck. Like you said, after that who know. But we frequently get "blamed" because trucks can't get the shipment there, even given enough time. Luckily, we are able to track it and when the complaint comes, we say "talk to your logistics people, they are using the cheapest truck they can find." Doesn't help our "score" though. :)
 

Golfman25

Trusted Information Resource
Unfortunately all of our delays were capacity related. It was our largest customer with 15 orders late over the course of 2 months. The CS team’s response to the customer for these delays was “due to plant construction”. A day later we receive the Corrective Action Notice. The internal debate right now is hinging on the notifications sent to the customer that their delivery date was being pushed back, which according to our CS team, exempts these orders from being considered late which is where I would disagree. I agree with the need to communicate with this customer however I’m not sure if that would fall in line with upper managements established “culture”.
Well you have two metrics in conflict -- yours which says we met what we said even with the notification. And theirs which says when the computers says it's due, it's due. As Johnny said, easiest thing is to fix the glitch and extend the lead time. Second would be not to confirm delivery until you know -- which you might want to speed that process up if possible.

Reality is, good on-time delivery takes both parties to work together. Customer gives you ample lead time to produce. You have ample capacity to meet the lead times. And then work together to move dates in or out based on actual needs. It's a lot of work and today's paper pushers just like to watch their computers, cause we all know computers don't lie.
 

Mike S.

Happy to be Alive
Trusted Information Resource
OTD metrics have so many factors to consider. Gman mentioned a few above.

It gets more fun when the customer adds requirements or makes changes mid-stream, or fails to deliver parts they agreed to supply on-time, without adjusting the due dates of course.
 

Ed Panek

QA RA Small Med Dev Company
Leader
Super Moderator
I think you have proven that your standard lead time of 10 days is inadequate for your maximum capacity. Adjusting the lead time to something your company can meet would be easier than increasing the capacity.

I want to be the fly on the wall when VP of Sales has to sign the CN to increase lead time for orders.
 

Bev D

Heretical Statistician
Leader
Super Moderator
Classic destructive "competitive tension" ala Neutron Jack.

no doubt this has been an impetus in some form for the gamesmanship approach to sending an email that there has been a delay in the order and then thinking that it's OK regardless of the contract or the Customer's lack of acceptance of the delay. Too many companies think we are in a socialist state where Customers' must put up with supplier's incompetence and pay the supplier anyway...
 

Golfman25

Trusted Information Resource
Classic destructive "competitive tension" ala Neutron Jack.

no doubt this has been an impetus in some form for the gamesmanship approach to sending an email that there has been a delay in the order and then thinking that it's OK regardless of the contract or the Customer's lack of acceptance of the delay. Too many companies think we are in a socialist state where Customers' must put up with supplier's incompetence and pay the supplier anyway...
Of course it's offset by customer's completely unreasonable demands that they needed it yesterday, at a lower price and better quality. :)
 

Bev D

Heretical Statistician
Leader
Super Moderator
Of course it's offset by customer's completely unreasonable demands that they needed it yesterday, at a lower price and better quality. :)
IF the customer is actually doing that. We have heard from the OP of the actions of his organization but not of the Customer…some Customers are in fact ordering to a lean line and counting on the delivery date…
 
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