1. Home
  2. Blog
  3. How On-Time Delivery Affects Manufacturer-Supplier Relationships

How On-Time Delivery Affects Manufacturer-Supplier Relationships

Posted by Dennis McGuigan on Jun 3, 2020 9:01:01 AM
Dennis McGuigan

On-Time Delivery (OTD)

On-time delivery (OTD). Suppliers are defined by it. Industrial buyers demand it. A recent study about supplier sourcing confirms it, reporting that "delivery performance" is the most important of six factors buyers consider when compiling supplier shortlists. 

The focus on supplier OTD takes on added significance in light of the massive supply disruptions caused by the coronavirus (COVID-19) pandemic. How well or how poorly a supplier is navigating the crisis and meeting OTD expectations provides a glimpse into  their grasp on materials handling and production processes.

supplier otd: what's at stake

Inefficiencies have ripple effects within the supply chain and manufacturer relationships. Instead of being known for delivering what’s needed when it’s needed, manufacturers dealing with poor supplier OTD could be:

  • Routinely managing delays
  • Absorbing otherwise unnecessary costs like expedited shipping
  • Losing time to market
  • Handling customer complaints

Poor supplier OTD could ultimately lead to a detrimental outcome for manufacturers  — losing customers.

Building Strategic Relationships

Viewed from that perspective, it’s easy to understand why industrial buyers seek out suppliers — including custom injection molders — with excellent, established OTD track records. Building strategic supply chain relationships with reputable on-time delivery suppliers such as Kaysun introduces supply chain stability because these partners have proven themselves to:

  1. Consistently measure up: Most industrial buyers use supplier scorecards to better assess supplier OTD performance against expectations. This apples-to-apples comparison provides objective insight into which suppliers score well and earn business, and those supplier relationships that may require reevaluation.
  2. Minimize unpredictability: Suppliers that regularly and clearly communicate, and have proven processes in place for reliable outcomes reinforce trustworthiness. Supplier OTD practices that include keeping manufacturers "in the loop" mitigate the risk of  over- or under-promising on delivery schedules.
  3. Add value: OTD is just one facet of a trusted supplier relationship. Suppliers that engage in larger conversations about high-productivity solutions — such as Design for Manufacturability (DfM) in the case of injection molders — do more than increase manufacturers' confidence. These suppliers add true value to the relationship that strengthens trust, grows business, and drives profits.

Through our commitment to superior supplier OTD, Kaysun has earned the trust and business of industrial, consumer, medical, and automotive OEMs. We are also relied upon for providing expert, actionable advice that leads to profitable results, like the insights you’ll find in our eBook, 5 Steps to Get New Injection Molded Products to Market Faster. Click the button below to access your copy now.

New Call-to-action

Topics: Supply Chain

New call-to-action