As a supply chain manager, your utmost priority is ensuring a smooth flow of materials to where and when they are needed. It's no easy feat, though. A supply chain is only as strong as its weakest link, and any disruption can lead to a breakdown. One crucial link lies in the reliable and timely delivery from suppliers.
To motivate suppliers to deliver on time, refer to this compelling article: http://www.ism.ws/pubs/proceedings/confproceedingsdetail.cfm?ItemNumber=11205. Despite being written in 1999, it still holds relevance today. Take note of these key points from the article:
Don't assume suppliers have received your purchase order and will adhere to the specified dates. Always obtain written confirmation from the supplier, ensuring they will deliver as required. Implement a system-generated acknowledgment from their ERP system to guarantee their plan aligns with your requirements.
Request regular status updates from suppliers, particularly in scenarios involving contract manufacturing or made-to-order processes. Maintaining constant communication allows you to stay informed and avoid last-minute surprises.
Be aware that some suppliers may operate on an Ex-works basis. While their responsibility typically ends once the material leaves their facility, you, as the supply chain manager, must ensure that the material reaches your docks promptly. Stay informed about shipment details and tracking information.
Insist that suppliers provide Advance Shipment Notification (ASN) for every shipment related to your purchase order. It's crucial to have visibility into the shipment process and access to freight forwarders' tracking details.
Keep track of your shipment until it reaches your works. Despite the shipping industry's efficiency, packages can still get lost in transit. If your shipment falls behind travel milestones, it's unlikely to arrive on time.
Ensure reliable supplier performance by meticulously measuring their delivery. Compare each delivery to its required, promised, and actual time of arrival. This continuous evaluation process should include informing the supplier of the results. Make sure this feedback reaches key individuals in the supplier's organization, even at higher levels.
Leverage electronic tracking, such as RFID technology, to monitor item movement within large warehouses.
Avoid relying solely on one source for critical products. Developing multiple sources provides a safety net if one source fails.
Following these steps will help you avoid nightmares of delayed deliveries, stock outs, or customer corrective actions, allowing for a more peaceful night's sleep. Consider utilizing a supply chain collaboration solution like Tpsynergy (www.tpsynergy.com) to ensure consistent on-time deliveries.
By implementing these strategies, you can enhance your supply chain's efficiency and ensure timely delivery of materials, helping your business thrive.
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