Most manufacturers and distribution companies receive some orders that call for delayed shipment. In the case of manufacturers these orders may be blanket purchase orders. In the case of distribution, they may specify future ship dates. These orders have one highly desirable quality: they demonstrate your customers’ commitment to your company or product. Consequently, when the number of these orders decline, it could indicate a lessening of customer commitment, which should be cause for concern.
Typically, any one company will not have a large number of customers who place these orders, although those customers are apt to be the best ones. The limited number of these customers and their relative importance make it both possible and desirable to examine their individual situations if their advance orders decline. Possibly a new purchasing strategy of new purchasing agent is responsible for the change, and no lessening of commitment is involved. On the other hand, there may be specific failings which are causing concern on the part of the customer.
Usually these failings will not involve the purchasing basics: quality, price, specifications, etc. They are more apt to involve less obvious problems. Some of these may be missed ship dates, inadequate fill rates, order filling errors, and other operational mistakes.
If your company has recently seen a negative trend in this metric call a Supply Chain Expert. Supply Chain Experts can help your organization find unique solutions to supply chain challenges that helps you improve overall customer satisfaction.
Dr. Edward F. Knab
Productivity Constructs, Inc.
800 660 8718 office
949 413 7333 mobile
ed@edwardknab.com
www.productivityconstructs.com
Dr. Knab is an academic practitioner and seasoned Global Supply Chain expert whose company, Productivity Constructs, is focused "helping companies optimize people, processes and performance to achievetheir ful potential.. Dr. Knab can be contacted for speaking engagements, coaching, or consultation at efk@productivityconstructs.com, ed@ewardknab.com or www.edwardknab.com.
Tags: chain, supply, design, efficiency, financials, forecast, inventory, manufacturing, productivity, profits
Tags: chain, client, consulting, design, efficiency, financials, forecast, inventory, manufacturing, productivity
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