![]() ![]() For example, the installation team is onsite and ready to start the project, but the inventory hasn’t arrived yet. When GNFR orders are received On-Time, it greatly minimizes add-on order costs, extra shipping costs, excess inventory disposition costs, and other consequential expenses.Ĭonsider an order that fails to deliver on time. Project Budgets– Receiving GNFR orders On-Time is a leading factor in controlling project budgets.With assurances of a high On-Time Delivery percentage, contractors and internal team associates can be scheduled to be onsite as the orders arrive for a Just-in-time installation. This prevents team members from spending unnecessary time searching for misplaced GNFR or wasting money reordering GNFR thought to be lost. Project Timelines– When GNFR orders are received On-Time, contractors and internal teams have the items they need to finish a project by the deadline.Typically, projects are a prime indirect spend category where achieving near-perfect On-Time Delivery yields significant ROI and can significantly protect revenue and profit loses. It is best to perform a cost benefit analysis to determine the appropriate On-Time Delivery percentage goal for each purchase category. Although higher On-Time Delivery percentage goals are typically costlier to attain, the rewards gained in time and cost savings can be worth the extra effort. Each enterprise should set their On-Time Delivery percentage goals based upon their corporate objectives. The Importance of Achieving Near Perfect Supplier On-Time Delivery Percentage ScoresĮnsuring suppliers are delivering On-Time is absolutely essential for GNFR risk mitigation. Enterprises who actively manage supplier On-Time Delivery percentage protect their capital, revenue and profits. Monitoring On-Time Delivery (OTD) supplier performance is crucial for all enterprises with a significant GNFR (goods not for resale) spend. ![]()
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