Why On-Time Shipping Performance Continues to Be Critical

Why On-Time Shipping Performance Continues to Be Critical

Dealing with logistics management for shippers remains a primary focus for many in the industry. On-time shipping performance remains one of the most critical factors for shippers of choice. Keeping customer satisfaction high and remaining focused on crucial business smart goals becomes essential focus points for logistics managers. Accurate data and thorough freight auditing help keep supply chains running smoothly and effectively.

The Challenges Leading to Delays in Logistics

On time shipping performance can have a direct and consequential effect on logistics and shipping and can be impacted directly in many ways. According to McKinsey & Company, “In its effort to optimize its supply chains, the consumer industry has evolved in the way it measures delivery performance, moving away from the traditional “case-fill rate” and adopting the more rigorous “on-time in-full” (OTIF) delivery metric. OTIF measures the extent to which shipments are delivered to their destination according to both the quantity and schedule specified on the order.” When trying to maintain timely order delivery and protocols, some common challenges and issues that can cause delays in the logistics and shipping timelines should get noted.

  • Poor communication between parties.
  • Lack of access to accurate data and updates.
  • Not enough planning before, during, and after shipping.
  • Focus directed on the wrong stats and figures.
  • Inadequate training of supply chain members.
  • Reluctance to embrace and use automation and technology.

OTIF and similar processes represent the ideal mechanism to keep retailers and manufacturers focused on the same objectives when it comes to on-time shipping performance.

On-Time Shipping Performance Builds Better Customer Experiences

In a world governed by e-commerce and digital shopping and shipping platforms, timely delivery and accurate tracking are indispensable. They will continue to be essential for success in the new year. Surviving 2020 and the COVID pandemic represented phase one. Now phase two begins and new focuses and processes must take root. Ensuring on-time shipping performance and accurate data tracking and analysis can help improve experiences all around. For 3PL logistics managers and B2B supply chain managers, on-time shipping represents one of the most critical aspects of customer service and retention.

Added Benefits of Top-Notch Performance in Shipping

When freight managers and supply chain party members can focus on the end goal and embrace the practice of on-time shipping performance with every order, it gets easier to maintain top-notch services. With shipments delivered on time and customers satisfied, it makes it easier for the shipping supply chain to enjoy some essential benefits:

  • Increased focus on business intelligence, performance, and reputation.
  • Reduced freight spend and reduction of fees and added expenses.
  • Streamlines processes to ensure on-time shipping performance every time.
  • Anomaly detection and correction for faster reaction to deviations.
  • Data standardization through faster analysis and distribution.
  • Better lines of communication throughout the supply chain network.

Realize Better On Time Shipping Performance With Intelligent Audit

The best examples of business intelligence within the freight and shipping industry deal with shipping protocols. Industry leaders who embrace on-time shipping performance and services fair the best. Customers want and need reliable shipping options that they trust. In the world of e-commerce, remote shopping, and high customer demands, shipping services still rank high. Keeping shipments affordable and reliable represents the greatest chance for growth and success in 2021. To learn more, contact Intelligent Audit today.

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