Home / Indirect Spend / Understanding On-Time Delivery’s Impact Upon Project Timelines

Understanding On-Time Delivery’s Impact Upon Project Timelines

Hitting your project's deadlines are extremely important to hit profitability goals.
Making sure everything’s delivered On-Time so that each project can be completed before the deadline.

Understanding On-Time Delivery’s Impact Upon Project Timelines

Receiving everything you need for a given project on time is crucial to your business. A contractor will give you, his client, an estimated completion timeline that relies upon obtaining materials on time to complete the buildout. If any part of that process is flawed, the contractor’s entire deadline will change, resulting in unhappy customers and workers.

What Is On-Time Delivery?

On-Time Delivery is an order fulfillment metric in which the supplier delivers the complete order at the right time. You must be fully aware of possible shipping lead times, along with delays, and the full logistics of actually receiving this order.

It’s worth noting that this metric only refers to what is originally ordered by the supplier. Meaning, an order received on time may not necessarily contain everything that is needed, as creating an accurate order is the buyer’s responsibility.

How Does On-Time Delivery Affect Project Timelines?

If the supplier does not deliver on time, the contractors won’t have the GNFR (goods not for resale) they need to finish the project by the deadline. Without any visibility to this, they will either spend a lot of time searching for these missing items assuming they were delivered or simply reorder the goods. Either way, valuable time has been lost on the project. Reorders can cause further delays, as the projects can’t be completed without these articles.

How to Ensure On-Time Delivery to Meet Project Timelines

Achieving a high On-Time Delivery % requires planning on both sides. Buyers need to have dynamic demand planning processes so that they know exactly which pieces are needed for a given project. The supplier should also be demand planning, so they are not caught off guard with orders they cannot fulfill. Coordinating the buyer’s and supplier’s demand planning processes can greatly increase your On-Time Delivery percentages.

It’s also important to have visibility of your order fulfillment processes in this business model. Investing in real-time order fulfillment visibility can help mitigate risks regarding GNFR. With On-Time Delivery visibility, every person involved in a project is able to see exactly where an order is, where it is going, when it will arrive, and, most importantly, whether something is wrong.

Conclusion

Receiving the orders on time helps cut down drastically on deadline extensions and lost revenue. It also turns an otherwise complicated and time-consuming task into an efficient and streamlined process. Expertise in all of these processes is something every buyer and supplier should invest their efforts in to decrease timelines that can, in turn, increase bottom lines.


About Lumatrak

Lumatrak provides a full range of real-time On-Time Delivery visibility tools to help better manage supplier and delivery performance from order to the final mile of your indirect goods delivery. Provided in the cloud through its Software-as-a-Service (SaaS) offering and already connected to vast numbers of manufacturers and contractors, Lumatrak’s solution can be quickly implemented to complement and enhance any ERP, Strategic Sourcing and Procure-to-Pay systems.

To learn more about how a better GNFR-delivery management solution could save your company both time and money, contact the team at Lumatrak today.

Top