The freight industry is ultimately about how you can use time management to accomplish your goals. The KPIs and indicators connected to time are therefore the most important for your company’s performance out of all the available supply chain metrics.
On Time Delivery logistic Benefits
Deliveries are being made at a previously unheard-of rate. Deliveries are being lost and received late because it is increasingly harder to dispatch and receive them on time.
Customers (frustration) and logistics operations are both affected negatively by declining on-time delivery (OTD) rates (loss of faith in the brand). Even one unsuccessful delivery attempt might have a cascading effect, increasing lead times for the other orders delivered along the driver’s route.
On Time Delivery Benefits
The improvement of on-time delivery metrics should be a key focus for every business, 3pl logistics provider, carrier, and anybody who makes deliveries because customers who have had a bad shipping experience are less likely to order from the same firm again.
What exactly does OTD “on time delivery” mean?
The metric used to quantify supply chain efficiency is on-time delivery or OTD. This KPI indicates whether or not a business is reaching its delivery-time targets, and it is important for both monitoring carrier performance and ensuring customer happiness. Measuring on-time delivery rates can assist enhance customer satisfaction and repeat orders by revealing how effective a courier service and brand are.
Why is on time delivery (OTD) so important?
Because it is one of the most significant ways that consumers evaluate the delivery experience, on-time delivery is one of the most crucial variables in customer retention. A lower percentage of deliveries made on time leads to increased customer complaints, customer service calls, costs for your business, and irate customers who won’t make another purchase.
In the current digital era, customer grievances can easily turn into nasty evaluations online, on a company website, or on social media. Additionally, delivery services face the risk of losing clients and damaging the reputations of their shippers. In the end, timely delivery is essential to maintaining high levels of client satisfaction and retention.
What causes Delayed Deliveries of shipments?
1- Inventory Control
Customers may place orders for things that aren’t currently in stock if your teams don’t have inventory management under control. There can be client discontent and possibly cancellations as a result of the lengthy lead periods and inevitable delays.
2- Ineffective order fulfillment procedures
Businesses must concentrate on enhancing the effectiveness of the e-commerce fulfillment process as the number of online orders increases. Picking out specific things, mailing them, and getting them out the door to the delivery or courier service are all part of this process. On-time delivery becomes almost impossible if this step is put off.
SHIP DATE – The day the order leaves the warehouse or distribution center and is delivered to the recipient is known as the ship day. The delivery will be delayed if there is a delay in shipment as a result of fulfillment center issues.
3- Transparency problems
According to a recent study, 36% of retailers have trouble delivering goods on time as a result of a lack of real-time order visibility and tracking. The majority of companies keep track of orders after they have left the warehouse.
On the other side, too many decision-makers are ignorant of how ineffective or time-consuming the early stages of lead times are, such as time spent in warehousing or the number of times providers need to provide white glove delivery services (e.g. over-the-threshold delivery, assembly, and installation). Without access to every second of the fulfillment schedule, it is impossible to accurately determine what is causing shipment delays.
5 Steps to ensure on time delivery
1- Automation and Visibility.
The final mile delivery procedure needs to be automated and visible in order to be successful on a large scale. If you constantly know where your orders are, you can identify issues before they grow into bigger ones. So basically tracking the shipments and automating as many steps as possible along the way will speed up the entire process. The more stages that are automated and the more resources that are connected for visibility, the higher your OTD rates ultimately are.
2- Optimize planning
Now is the time to improve your dispatching and routing with OTD in mind. Planning for both urgent and prearranged delivery demands is included here.
For instance, you can use start using software to choose a fleet or driver for on-demand deliveries based on who is closest. A human just cannot complete this work with the same level of accuracy and, more critically, the speed that software can. Similarly to this, it’s crucial to measure each step and component when using a just-in-time delivery approach in order to optimize the workflow.
Logistics organizations can employ intelligent route optimization software for planned deliveries that account for all pertinent parameters when calculating travel time and distance to each site. This makes it possible to consistently ensure that packages arrive by the date of delivery.
3- Sync your systems
You probably use a variety of different systems throughout the supply chain. The moment has come to combine them. This includes your order management system (OMS), transportation management system (TMS), logistics management software, driver applications, and customer experience interface. All of this contributes to making sure the process is as transparent as possible.
4- Keep realistic expectations
Despite your best efforts, something will inevitably go wrong during the fulfillment process. When you use smart technology to plan delivery, customers will be informed as soon as a delivery exception happens and there is a delay. The consumer will be informed and not left in the dark, even if the initial delivery date has been delayed. If customers and clients are kept informed, they could be more understanding and less frustrated.
5- make sure you have a backup plan
A backup strategy should always be in place. Regardless of the circumstance, you must make sure that delivery services are given on schedule by dispatching additional drivers or automobiles as needed.