Insight of the Week: On-Time Delivery Performance

September 9, 2020

Poor forecasting of inbound shipments can cause issues for inventory and accounts payable. But how do you find the cause?

Inaccurate vendor shipment lead time estimates were contributing to distribution center offloading inefficiencies, poor AP forecasting, and inventory stockouts.

An analysis of historical purchase order data led to the identification of the cause of poor delivery performance and improvement actions to remedy each vendor’s problem(s).

As a result, the client experienced a significant decrease in average shipping delays while improving gross margin due to lower inventory carrying costs.

Read more.

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