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Customer Satisfaction through On-Time Delivery

QualiTEE

Starting to get Involved
#1
We measure on-time delivery as a way to help gauge our customers' perception of our company. We simply measure "Lines Shpd On-Time / Total Lines Shpd" ("line" being the line shipped on the Customer Order).

Would it be better to measure Qty On-Time / Total Qty Shipped? We have low-volume shipping, so this really affects the percentage.
 

Mikey324

Quite Involved in Discussions
#2
We measure on-time delivery as a way to help gauge our customers' perception of our company. We simply measure "Lines Shpd On-Time / Total Lines Shpd" ("line" being the line shipped on the Customer Order).

Would it be better to measure Qty On-Time / Total Qty Shipped? We have low-volume shipping, so this really affects the percentage.
We measure on-time delivery as a way to help gauge our customers' perception of our company. We simply measure "Lines Shpd On-Time / Total Lines Shpd" ("line" being the line shipped on the Customer Order).

Would it be better to measure Qty On-Time / Total Qty Shipped? We have low-volume shipping, so this really affects the percentage.

Of the metrics you mentioned, which is most valuable to your organization? Will one offer you better insight and needs for improvement?
 

Bev D

Heretical Statistician
Staff member
Super Moderator
#3
As a Customer, I want everything I ordered on time. you should never change your metric to make it 'look better'. Remember it's your Customer's perception of your company that matters not your company's rationalization of how it's not that bad.

I thoroughly understand the weaknesses of percentages, so don't focus on the number /percentage, focus on improvement actions that move you closer and closer to 100%
 

QualiTEE

Starting to get Involved
#4
As a Customer, I want everything I ordered on time. you should never change your metric to make it 'look better'. Remember it's your Customer's perception of your company that matters not your company's rationalization of how it's not that bad.

I thoroughly understand the weaknesses of percentages, so don't focus on the number /percentage, focus on improvement actions that move you closer and closer to 100%
I do completely agree. My supervisor, however, has asked me to review the calculations in both ways to see how it affects the numbers. I am not certain if there is an industry standard for this, to be honest.
 

Jim Wynne

Staff member
Admin
#5
I do completely agree. My supervisor, however, has asked me to review the calculations in both ways to see how it affects the numbers. I am not certain if there is an industry standard for this, to be honest.
There is no industry standard. If you want to make sure that things are shipped on time, you first have to make sure that they're produced on time. Production timeliness and shipping timeliness are of course related, but they have their own potential failure modes. As Bev suggested, a simple percentage usually isn't very helpful.
 

Jim Wynne

Staff member
Admin
#7
Do you have any customers that send you on time delivery performance data? If so, how do they calculate it?
You bring up another problem with this particular metric. Customers frequently ding their suppliers for delivery issues they themselves caused, such as making late changes without changing the delivery requirements on their purchase orders. Also, customer "A" might use a different calculation than customer "B," and both of them might be questionable.
 

Sidney Vianna

Post Responsibly
Staff member
Admin
#8
You bring up another problem with this particular metric. Customers frequently ding their suppliers for delivery issues they themselves caused, such as making late changes without changing the delivery requirements on their purchase orders.
A massive aerospace corporation is known for issuing PO's with delivery dates in the past. Short of solving the time-travel impossibility, suppliers are automatically dinged for no fault of their own.
 
#9
For any customer with less than a certain number of shipment a time period, i.e.; 20, the pct. isn't useful. For low number of shipments, you can look at the specifics if necessary.
 

optomist1

A Sea of Statistics
Trusted
#10
my two cents....in the Automotive...I mean mobility field, most OEMs maintain Internal and External Scorecards, amongst the many criteria the OEMs judge/measure a suppleir on is "on time delivery"....and again in most cases, the supplier's card can be discussed with the OEM, AND the OEMs frequently foist late changes many times post PDR (run at rate)/PPAP. It is encumbant upon the PM to address the obvious repetitive issues...."youre already late, where are my parts....etc." Suppliers are many times forced to accept such tactics as part of the "horse trading" that occurs, "new products coming down the pipe"...OEMs will get way with what the suppliers allow them to....
 
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