Whether you run a small, up-and-coming company or manage a thriving corporate empire, one of the biggest indicators of your business’s success is your on-time delivery performance. On-time delivery or OTD refers specifically to the ratio of orders shipped on or before the promised delivery date.
With powerhouse Amazon able to ship and deliver goods within a lighting 1-2 business days, consumers have higher expectations than ever. Regardless of your product quality, failure to meet delivery expectations can and will cost you repeat business.
In order to compete with big players like Amazon, you need to create a streamlined logistics process and be open to constant audits of your internal efficiency.
A complete logistics overhaul might sound daunting, but don’t panic. Here are a few foolproof ways to improve your on-time delivery performance.
1. Request Customer Feedback
A recent report from logistics software Shipstation found that 80% of consumers surveyed identified the quality of the shipping experience as their top e-commence concern. Further questions revealed that the perceived quality of the shipping experience is not necessarily linked with the speed of shipping, as many consumers were willing to wait longer for lower shipping costs.
The key is meeting customer expectations. Set up an online feedback form that is automatically emailed to clients upon completion of the transaction. By actively soliciting feedback from customers, you can identify their biggest pain points and where expectations were not met.
2. Invest in a Logistics Dashboard
While customer feedback is helpful, a datapine’s logistics dashboards are a more scientific way to help you identify issues with your on-time delivery performance. A logistics dashboard is an innovative tool that allows you to monitor and identify trends in your distribution process, from warehouse processes to operational costs, in real-time.
An effective logistics dashboard will allow you to personalize the metrics shown, giving you control over how you view your data. One vital KPI to monitor is your loading time and weight, as knowing how long a vehicle takes to be loaded based on weight will help you improve loading time estimates and ensure delivery time is as accurate as possible.
Additionally, if you find that loading time is significant, you may be able to determine overstaffed areas of your business (based on dashboard indicators) you can reallocate manpower from when needed to fulfill heavy orders.
3. Identify Reasons for Late Delivery
Identifying that you are missing the mark when it comes to your OTD performance is just the first step.
The next step is troubleshooting the reasons behind it. You can do this by establishing a set method for your staff to record and report issues that impacted delivery for each order. Issues can be broken up into several common categories, such as product availability, fleet availability, weather conditions, etc.
Once you’ve established the key reason for failure to meet delivery expectations, you can create the best plan of attack. A logistics dashboard, discussed above, can also help you identify and log these issues.
4. Find Purchasing Patterns
Founding Father Benjamin Franklin famously said, “by failing to prepare, you are preparing to fail.” This quote highlights the importance of preparation when setting and meeting your delivery goals.
Through the act of consistently monitoring trends in sales, you can establish patterns in purchasing. For example, if you routinely ship flowers and gifts, it’s safe to assume that your deliveries will peak around holidays, such as Christmas and Mother’s Day. If you sell wet weather gear, sales between November and January will increase.
Armed with this data, you can ensure that you have adequate transport, personnel and stock in the warehouse to meet demand before the spike occurs.
5. Don’t Overextend Yourself
It may be tempting, particularly if you have a small or new business, to take on every shipment request that comes your way, including huge corporate orders.
While establishing new partnerships and growing your company is paramount to success, it cannot come at the cost of quality. If you take on tasks you do not have the resources to complete in a timely manner, you will burn bridges with clients you may be more adept to service in the future.
It’s vital to make a realistic assessment of the amount of work you can take on at any time, that includes notifying clients if you are able to deliver the order but require a longer turn-around time.
In the extremely competitive world of e-commerce and logistics, reliability is key. With just one delivery hiccup enough to permanently turn away clients, you owe it to your business and stakeholders to implement, monitor and regularly audit your on-time delivery performance procedures.
By following the above five steps, you will be able to identify the weak spots in your current logistics strategies and tailor solutions to suit your business.
from Feedster https://www.feedster.com/business/5-ways-to-improve-on-time-delivery-performance/?utm_source=rss&utm_medium=rss&utm_campaign=5-ways-to-improve-on-time-delivery-performance
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