Delivery Reliability

Delivery Reliability (DR) is a broadly used standard KPI measurement in supply chains to measure the reliability of a supplier's delivery date confirmation for a customer's demand. Following the nomenclature of the DR-DP-Matrix, three main approaches to measure DR can be distinguished:

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

Contents

Volume/On Time (=CLIP)

Formula

If ((Demandp,c + Backlogp − 1,c) > 0)

DR_{T}^{V} = \frac{Delivered_{p,c} + Predelivery_{p-1,c}}{Demand_{p,c} + Backlog_{p-1,c}}

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 an singular case (DR_{*}^{S}) has to be defined. In general a singular case is described by a n-Tupel consisting of a set of the following order and delivery details:

  • order number
  • customer identifier
  • product identifier
  • wish date of customer
  • confirmed date of supplier
  • ship to information
  • delivery date
  • delivery note number

Formula

  • DR_{S}^{D}
After a singular case has been delivered to the customer its DR is measured as follows:
If (wish date <= arrival date <= confirmed date of supplier) then
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

  • DR_{S}^{T}
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 <= arrival date <= confirmed date of supplier) then
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%


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