Glossary
Delivery Performance to Request Date
Tags: Glossary
The percentage of orders that are fulfilled on or before the customer's requested date is used as a measure of responsiveness to market demand. Delivery measurements are based on the date a complete order is shipped or the ship-to date of a complete order. A complete order has all items on the order delivered in the quantities requested. An order must be complete to be considered fulfilled. Multiple line items on a single order with different planned delivery dates constitute multiple orders, and multiple planned delivery dates on a single line item also constitute multiple orders. Calculation: [Total number of orders delivered in full and on time to the customer's requested date] / [Total number of orders delivered].
What is Delivery Performance to Request Date?
Delivery Performance to Request Date
Delivery performance to request date is a crucial metric used in logistics to measure the ability of a company to meet customer demands in a timely manner. It is a key indicator of how well a company is able to respond to market demand and fulfill customer expectations.
The measurement of delivery performance to request date is based on the date a complete order is shipped or the ship-to date of a complete order. A complete order refers to an order that has all items on the order delivered in the quantities requested. In other words, every item that a customer has ordered must be delivered for the order to be considered complete and fulfilled.
It is important to note that if an order has multiple line items with different planned delivery dates, each line item is considered a separate order. Similarly, if a single line item has multiple planned delivery dates, each planned delivery date is also considered a separate order. This distinction is necessary to accurately calculate the delivery performance to request date.
The calculation of delivery performance to request date is relatively straightforward. It is determined by dividing the total number of orders that are delivered in full and on time to the customer's requested date by the total number of orders delivered. This calculation provides a percentage that represents the company's ability to meet customer demands within the requested timeframe.
A high delivery performance to request date percentage indicates that a company is consistently meeting customer expectations and delivering orders on or before the requested date. This is a positive outcome as it demonstrates the company's responsiveness to market demand and its commitment to customer satisfaction.
On the other hand, a low delivery performance to request date percentage suggests that a company is struggling to meet customer demands within the desired timeframe. This could be due to various factors such as supply chain disruptions, production delays, or inefficient logistics processes. In such cases, it is important for the company to identify the root causes of the low performance and take corrective actions to improve its delivery capabilities.
Overall, delivery performance to request date is a critical metric for companies operating in the logistics industry. It provides valuable insights into a company's ability to meet customer demands and fulfill orders in a timely manner. By continuously monitoring and improving this metric, companies can enhance their competitiveness, strengthen customer relationships, and drive overall business success.