\nDoes your delivery on-time reporting really align with what your customer expects?<\/p>\n
The DOT KPI simply requires comparing two measures of time \u2013<\/p>\n
- \n
- the\u00a0actual<\/strong>\u00a0time a delivery occurred, compared to<\/li>\n
- the time it was\u00a0promised<\/strong>\u00a0to be delivered, typically a time window.<\/li>\n<\/ol>\n
And if the actual time falls within the promised time window, it\u2019s \u2018On Time\u2019. Simple.<\/p>\n
But this is where the \u2018On Time\u2019 challenge starts \u2026<\/p>\n
![\"\"](\"https:\/\/www.argonandco.com\/wp-content\/uploads\/2024\/07\/a-diagram-of-a-time-description-automatically-gen-300x230.png\")
<\/p>\nActual versus Promised versus Expected versus Planned<\/strong><\/p>\n
There are a number of factors and points of measures that need to be considered when determining if a delivery is actually \u2018On Time\u2019.<\/p>\n
Actual<\/strong>
\nThe \u2018Actual\u2019 delivery time is the time the delivery is recorded as having occurred. This is the time against which DOT is calculated.
\nHowever, this time can be based on either:
\n> the arrival at the customer location, or
\n> when the delivery is unloaded or
\n> when the customer \u2018signs\u2019 (sign on glass), or
\n> the truck departs or driver confirms delivery complete?<\/p>\nSometimes there can be a significant time difference between site arrival and departure.
\nAt some large retail distribution centres, trucks can park up for hours waiting before getting an unloading dock space, or if a driver has many deliveries within the same large shopping complex, a delivery to an outlet may be sometime after the truck arrived at the site.<\/p>\nAnd if using a 3PL transport service, need to ensure the time being reported aligns with the time being used to calculate DOT, particularly if based on automatic geofencing data logic.
\nIt is important to know what actual time is been recorded and that this aligns to the calculation of the understood and agreed DOT measure.<\/p>\nPromised
\n<\/strong>The \u2018Promised\u2019 delivery time should be the agreed delivery window with the customer, and the window to measure DOT against. This time window is the agreed earliest time and latest time deliveries can be made, taking into account both the customer\u2019s preferred times to receive a delivery and the preferred delivery time to this customer.<\/p>\nDefining and aligning optimal, requested and achievable windows may require careful negotiation, optimisation analysis and compromise on both sides.<\/p>\n
Expected<\/strong>
\nIf a customer regularly receives deliveries around the same time this may create a delivery time expectation. This \u2018Expected\u2019 delivery time needs to be carefully managed as it can quickly become the measure by which the customer will measure DOT. For example. If a customer expects a delivery around 3pm every time, and if a delivery were to occur at 4pm, before a 5pm promised and agreed window, the customer may still conclude and look to measure the delivery as \u2018late\u2019!. It is very easy for the \u2018expected\u2019 time to become the measure.<\/p>\nIt is important the agreed window or \u2018delivery promise\u2019 is a clear and accepted reference with the customer, and that this is the window used for reporting DOT. Sometimes, just ensuring this makes all the difference.<\/p>\n
Planned<\/strong>
\nThe \u2018Planned\u2019 delivery time is the time the delivery has been planned to be delivered.
\nA lot of businesses and transport operators these days use a transport management system (TMS) that incorporates a level of automated scheduling in which a system will determine when a delivery to a customer is planned to occur. And this could be a different time for each delivery.<\/p>\nIf using a scheduling system, check that you are not planning to fail before you start! It may be planned for the delivery to not even be within the Promised delivery time!
\nEnsure the planning system aligns with and uses the customer agreed delivery times?
\nBest practice encourages to share \u2018Planned\u2019 delivery windows to enhance the customer experience, but ensure how DOT reporting takes into account any \u2018Planned\u2019 window compared to the \u2018Promised\u2019 window. That is, does the reduced and refined \u2018Planned\u2019 window replace the \u2018Promised\u2019 window for the DOT calculation reported? Does DOT remain against the \u2018Promised\u2019 window or, as some businesses do, report DOT to Promised window to the customer and DOT to Planned window for operational metrics.<\/p>\nLate vs Early
\n<\/strong>In the complex world of transport and distribution, unfortunately not everything goes to plan!
\nA \u2018Late\u2019 delivery, where the \u2018Actual\u2019 time of delivery is later than the \u2018Promised\u2019 time window, may be something you have to report and manage, and is why DOT is measured as a percentage % against all deliveries. The key is minimizing \u2018late\u2019 deliveries by having and using good systems and processes.<\/p>\nBut \u2018Early\u2019 \u2013 how can this be?
\nIf a driver arrives early to a customer, before the agreed \u2018Promised\u2019 window, it makes good customer service for the driver to just wait until the earliest time commences, therefore delivering \u2018on time\u2019 and not failing DOT.
\nBut if a measure of \u2018Early\u2019 is reported as \u2018On Time\u2019 and the customer happily accepts the delivery, then the \u2018Promised\u2019 time window needs to be adjusted to the earler time the Customer will accept the delivery because it\u2019s not \u2018Early\u2019 then!<\/p>\nManaging, setting and then meeting customer expectations is\u00a0crucial\u00a0for successful order management. When you fulfill orders in a way that aligns with what the customers expect, you enhance their experience and build loyalty.
\nAchieving \u2018Delivery On Time\u2019? is either a \u2018yes\u2019 or \u2018no\u2019. And as simple as the measure of DOT is, ensuring DOT is measured correctly is not simple. Make sure the DOT you use is aligned, understood and reported correctly.<\/p>\n - the time it was\u00a0promised<\/strong>\u00a0to be delivered, typically a time window.<\/li>\n<\/ol>\n