Delivery Performance

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Delivery performance (DP) is a broadly used standard KPI measurement in supply chains to measure the fulfillment of a customer's demand to the wish date. [1] Following the nomenclature of the DR-DP-Matrix three main approaches to measure DP can be distinguished:

Contents

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

Volume/on time

Formula

If ()

=

Else

NULL

Demand:= customers wish 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:

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 a singular case () has to be defined. In general a singular case is described by a n-Tuple consisting of a set of the following order and delivery details:

Formula

After a singular case has been delivered to the customer its DP is measured as follows:
If (wish date = arrival date) then
DPsingular case=1
else
DPsingular 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 performance is calculated as follows:

whereas p is determined by the arrival date

After a period has elapsed all singular cases with wish date within period are considered and their DP is measured as follows:
If (wish date = arrival date) 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 performance is calculated as follows:

whereas p is determined by the first confirmed date

Result

0%≤≤100%

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The DR-DP-Matrix summarizes the main methods to measure delivery reliability (DR) and delivery performance (DP) within supply chains. It categorizes the methods by three criteria:

  1. Type of reference: First Confirmed Date (FCD) / Last or Best Confirmed Date / Customer Request Date (CRD)
  2. Type of measurement: Volume (V) / Singular(S)
  3. Type of view: On Time (T) / Delivery (D)

References

  1. "Delivery performance Measurement on Serbian Journal of Management" (PDF).

See also