For different reasons, many times the deliveries of orders are delayed. This is something that all entrepreneurs experience at least once in their lives. Buyers do not always understand this type of delay, which undoubtedly affects customer satisfaction with respect to the service received. What to do in these cases? How to improve delivery times ?
One of the challenges that you have to face as a store manager is meeting the agreed time for delivery. Don't worry, we are here to help you. Read on to learn how you can improve delivery times for an order .
In order for you to better understand how the process is, we want you to know some basic concepts first.
What is Lead Time?
The lead time or delivery time is the "time" that passes from the moment a customer makes a purchase and a purchase order is generated, until the moment the merchandise is delivered.
What does Lead Time measure?
Everything will depend on the supply chain. For example:
- In sales or commercial management departments : lead time allows you to commit to a specific delivery date.
- For purchasing or provisioning : this prevents stock-outs on the production line.
- Lead time of production : it allows to know the calculation of manufacturing times which impacts on logistics and commercial management.
- Logistics and distribution : this shows you the production time of a product, how long it takes to get to the warehouse, the processing time and finally the time in which it is delivered to the customer.
How is it calculated?
To calculate the Lead time the following formula should be used:
Lead time = delivery date – order date
The result will show you the days from when the order was placed until it reaches the customer.
The calculation must be made taking into account each part of the supply chain that has been previously identified and for each product in particular.
How to reduce the delivery time of a product?
To improve the delivery time of orders to your customers, it is important that you put the following tips into practice.
It is essential that you keep track of deliveries. Everything must be properly organized so that the deliveries are carried out correctly. There must be a schedule for deliveries, optimal review before the order leaves, and efficient transport operation.
Optimize your routes
Lean on technology and use applications or tools that help you provide a better delivery service. These software are designed so that you can reduce kilometers, know the weather and reduce fuel consumption, among other things.
As a good manager you have to supervise the operation of the fleet to be more efficient in deliveries. For this, it is essential that you know all the information about it. For example: how many vehicles there are, who drives it and in what state they are.
Digitization of the process
All information regarding the operation of the company and the delivery processes must be managed digitally. This will allow you to reduce work times, work more efficiently and will therefore make your clients feel more confident as well as satisfied with the service you provide.
If you are having difficulties with delivery times, in order to improve, you have to know exactly what you are failing at. You have to know what is needed and what your weak points are, only then can you improve.
Responsibility, commitment and teamwork
The company and all its members must work with responsibility, commitment and teamwork in order to comply with an efficient delivery.
Importance of delivering on time
Deliveries on time are essential to build confidence in buyers, especially if it is the first time they place an order. A delivery in the agreed time makes the customer loyal to the company.
They are a way of guaranteeing a quality service. Punctuality in deliveries should be a priority for all companies regardless of the industry. This feature sets it apart from the competition.
Only in cases of force majeure should the delay in an order be justified. To achieve setbacks, it is best to have good logistics and that the work is done as a team.
Benefits of reduced delivery time
Get accurate demand planning.
when delivery times are reduced, more accurate and reliable demand forecasts are obtained.
Increases the possibility of having low stock levels
a lead time guarantees that it is possible to operate with a low volume of inventories to satisfy the demand.
Improve customer experience
If delivery times are respected, a relationship of loyalty with the client is maintained, which undoubtedly makes the company have remarkable growth.
Continuous problem detection
Reducing the lead time or delivery time, allows to know the problems that the business may have with regard to time. Being aware of this means that we can act in a timely manner.
Usual delivery times in the market
Normally delivery times in supply chains are as follows:
It usually has a time of 24 hours. In itself, these are short times, especially if the dispatches are made in nearby areas.
Dispatch out of the country
Delivery time is usually one week.
Time may vary. Maybe a couple of hours or several days. It all depends on the logistics of work and the stock replenishment systems.
This can take several days from when the purchasing department contacts the supplier until the merchandise arrives.
Management of the order by the supplier
It is the time in which the supplier manages the order. Here several steps must be fulfilled. Example: check that there is merchandise, assess the shipping time and check that there are no pending payments.
Transport of the merchandise
The time may vary and depends on the amount of merchandise, the place where they are and the type of transport used.
Reception of the merchandise
It is the time it takes for the merchandise to be unloaded at the business and the duration of its inspection.