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Delivery performance (DP) is a term that is used to identify the rate of efficiency that a business operation demonstrates when it comes to preparing and delivering an order to a customer. The process begins with the assessment of the processes and procedures used to receive orders from clients, schedule the creation of the goods or services necessary to fulfill those orders, and ultimately the amount of time it takes to provide delivery to customers in a manner that meets client expectations. The overall concept behind delivery performance is to manage each of the tasks leading up to the delivery with the greatest degree of efficiency, making it possible to satisfy customer demand and increase the odds of receiving additional orders from those customers.
The general idea of delivery performance involves creating a series of mechanisms that aid a business in structuring the operation so that every aspect leading up to the delivery of goods and services is as efficient as possible. In order to accomplish this goal, attention is paid to every aspect of the operation. Creating a supply chain management process that makes sure raw materials are on hand to fill orders is key to the process. In like manner, the ability to manufacture goods without delay is equally important, making it necessary to make sure the production process is efficient as well as cost-effective. Even factors such as the management of delivery options ranging from the choice of shippers or couriers is very important when it comes to evaluating delivery performance.
The benefits associated with achieving the highest degree of delivery performance include an increased level of customer satisfaction, especially when the delivery of those goods or services is able to not only meet customer expectations but exceed them. The efficient processing of orders all the way through to the point of delivery can often set a company apart from its competition, making it even easier to continue growing the customer base. An obvious reward of a high level of delivery performance is the increased revenue stream that results as happy customers return again and again for more of the goods and services they desire.
There are a few potential issues with delivery performance that should be kept in mind. While the goal is to provide simple and effective means of processing and delivering orders to customers, care must be take to provide as much attention to quality as is given to speed and efficiency. This means that sacrificing quality in order to streamline the production process may in the long run hurt rather than help the business, as customers find that they can wait a little longer and obtain higher quality goods as comparable prices from the competition.
It is not enough to know that deliveries are ‘on time’. It is also important to keep a track of how often deliveries are on time, what is the value and quantity of the late items and many other things.