How many times did you write or receive such mail? How many times did you receive updates on late po lines after they are already late? How many times have you seen your manufacturing lines coming to a halt with no real up front alert?
Poor on-time delivery (OTD) performance from suppliers impacts more than customers. It’s also an indicator of poor production efficiency and materials handling procedures. Consistent OTD problems can negatively affect many other areas of a company’s supply chain. Imagine the impact of a material shortage on the production process, the delayed schedules, and the extra labor costs for waiting. Not to mention costs of amending production lines, extra shipping, and addressing a flood of customer complaints.
While most supply chain organizations strive for 99% OTD from suppliers, most will be around 80-85% at best. So how can we better manage supplier commitment updates in supplier portals or any other form of communication in order to make the right decision and avoid late deliveries and line stoppages?
The use of advanced big data algorithms to analyze your supplier's inputs and commitment over time has a great positive impact on OTD performance and understanding suppliers' service level and credibility.
This type of analysis help set expectations and gives supply chain managers the tools to make the right decisions for on-time deliveries, eliminate hidden factory costs of late parts, redeploy labor from expediting to value-added activities, and focus on growth.
After studying and analyzing the big data gathered from supplier commitments over time, the algorithm provides a scoring system that is adjusted on a supplier level and can help predict and indicate which parts will be on time and which will be late up to 90 days in advance.
This is of huge potential benefit to manufacturing companies, especially those that rely on just-in-time component and materials delivery, and will improve OTD rates and assemble lines shutdowns with the costs associated with such problems. Stop chasing your parts, past dues, and line stoppages. It's time to become proactive!
Stop chasing your parts, past dues and line stoppages. Its time to become proactive!
It's time to become proactive!Talk to an Expert