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Importance of On-Time Shipments in Manufacturing

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Many companies in the manufacturing industry use the “just in time” method for ordering and receiving products. As a manufacturer, getting your products to your clients on time is critical. While no client wants delays receiving parts, the “just in time” program increases your responsibility. Failures are costly and there are relatively easy ways to improve your delivery record.

Failures in On-Time Delivery
When clients are depending on receiving their order on a set date and time, any delays can cost your business good will. Failures will negatively impact your reputation and will cost you clients.

In some contracts, a delay in receiving can even impose fines on your company. While your company may not face financial repercussions, the receiving company may not be able to meet the production schedule. These delivery issues can even cause some manufacturing plants to become idle until the materials needed are finally received. In order for “just in time” production to be successful, everything in the chain must be on time.

Tracking
No matter what type of shipping you use, you must be able to track the location of your orders. If a client calls with a concern, having the information readily available can often alleviate worries. Full tracking includes a record of the delivery time. Without this information, it can be difficult to prove that you met your obligations if materials become lost in the recipient’s receiving area.

GPS Guidance
When you handle your own fleet, GPS software will benefit you in a couple ways. You will always know exactly where your trucks are and you will be able to get a good estimate on delivery times. If a client calls, you can let them know the approximate time to expect the shipment. This establishes superior customer service for your company.

Using the right software can help your fleet create the best routing for the fastest deliveries at the lowest costs. Organized, planned routes will be the most efficient. When weather or traffic conditions create delays, a new route can be quickly programmed to help the driver arrive at a location with the least amount of time wasted.

Using a Shipping Service
Trying to stay on top of all the details for shipments to numerous destinations can quickly become a headache. Smaller manufacturers that only ship to one or two locations may not experience as many problems, but the problems still exists. If your company ships to multiple clients, each with their own unique delivery needs, using a shipping service provider can eliminate your problems in tracking individual shipments.

A shipping service will handle the tracking for you -- alerting you when deliveries are made, or if there are any issues. You will receive instant feedback on arrival time and the condition of the delivery. If traffic becomes a problem, the shipping service will handle re-routing to make sure deliveries get where they need to be on time.

Working with a professional shipping service can greatly improve your on-time deliveries and reduce the amount of work you have to do in order to ensure your products get to the destination. Be sure to look at your delivery records and the ratio of on-time and late deliveries. This will enable you to see where your processes can improve.

Sources

http://smallbusiness.chron.com/advantages-disadvantages-justintime-inventory-21407.html

http://www.leanmanufacture.net/kpi/ontimedelivery.aspx

http://www.gcimagazine.com/business/manufacturing/supplychain/133094458.html

 

Author Bio

Brad Poulter, Co-owner and Executive VP of Operations at Best Transportation Services, the premier Chicago messenger and freight service provider for the manufacturing industry.

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