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Delivery reliability

Measure of completeness and timeliness of delivery

Delivery reliability is concerned with the completeness and timeliness of delivery of goods which have been ordered. It is one of the five attributes in supply-chain management according to SCOR-model, developed by the management consulting firm PRTM, now part of PricewaterhouseCoopers LLP, (PwC) and endorsed by the Supply-Chain Council (SCC) as the cross-industry de facto standard diagnostic tool for supply chain management, SCOR measures the supplier’s ability to predictably complete processes as promised. It is measured by perfect order fulfillment and demonstrates the degree to which a supplier is able to serve its customers within the promised delivery time. Companies can apply the concept to the delivery of their incoming materials orders and their delivery of products to customers.

Following the nomenclature of the DR-DP-Matrix, three main approaches to measure DR can be distinguished: :*DR_{T}^{V} (equivalent to confirmed line item performance, or CLIP) :*DR_{D}^{S} :*DR_{T}^{S}

:Type of measurement: volume (V)/singular(S) :Type of view: on time (T)/ delivery (D)

Volume/on time

This measure is equivalent to confirmed line item performance (CLIP).

Formula

If (Demand_{p,c} + Backlog_{p-1,c}0) :DR_{T}^{V} = min(\frac{Delivered_{p,c} + Predelivery_{p-1,c}}{Demand_{p,c} + Backlog_{p-1,c}}, 1)

Note: In the case where a supplier notifies the appropriate partner in the supply chain that a promised delivery date/quantity cannot be met, which is called delivery early warning (DEW), the sum of DEWs issued to reduce the commit for a certain week is added in the denominator.

Else :NULL

Demand: Suppliers confirmed quantity; c: Product identifier;p: Time period e.g. a day, a week, a month ...

The cumulation over a period and a group of product identifiers c is done as follows: :DR_{p,c} = \frac{\sum_{p,c}(DR_{T}^{V})}{count_{p,c}(DR_{T}^{V}NULL)}

whereas p is determined by demand period.

Singular/delivery and singular/on Time

Singular case definition

To fit to the needs of the environment, the granularity of a singular case (DR_{}^{S}) has to be defined. In general a singular case is described by an n-Tuple consisting of a set of the following order and delivery details: : order number :* customer identifier :* product identifier :* wish date of customer (the date when the customer wants the material to be in their facilities) :* confirmed date of supplier :* ship to information :* delivery date :* delivery note number

Formula

** DR_{D}^{S}** :After a singular case has been delivered to the customer its DR is measured as follows:

::: DRsingular case=1 ::else ::: DRsingular case=0 arrival date = delivery date + transit time By cumulating the results of singular cases over a certain period p and, if necessary, additional criteria c (e.g. customer, product, ...) the delivery reliability is calculated as follows: :DR_{p,c} = \frac{\sum_{p,c}(DR)}{count_{p,c}(singular cases)} whereas p is determined by the arrival date. 2) ** DR_{T}^{S}** :After a period has elapsed all singular cases with first confirmed date within period are considered and their DR is measured as follows: ::If (wish date ::: DRsingular case=1 ::else ::: DRsingular case=0 arrival date = delivery date + transit time By cumulating the results of singular cases over a certain period p and, if necessary, additional criteria c (e.g. customer, product, ...) the delivery reliability is calculated as follows: :DR_{p,c} = \frac{\sum_{p,c}(DR)}{count_{p,c}(singular cases)} whereas p is determined by the first confirmed date. ## Result 0%≤DR_{T/D}^{S/V}≤100% ## References ## References 1. Heaney, B., ''Supply Chain Visibility and Segmentation: Control Tower Approach'', p. 5, [[Aberdeen Strategy and Research. Aberdeen Group]], published in July 2014 ::callout[type=info title="Wikipedia Source"] This article was imported from [Wikipedia](https://en.wikipedia.org/wiki/Delivery_reliability) and is available under the [Creative Commons Attribution-ShareAlike 4.0 License](https://creativecommons.org/licenses/by-sa/4.0/). Content has been adapted to SurfDoc format. Original contributors can be found on the [article history page](https://en.wikipedia.org/wiki/Delivery_reliability?action=history). ::

supply-chain-management

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