Part of successfully coordinating supplier management is making sure they meet your projected delivery times. Every purchasing department has had to deal with supplier delivery delays. What reasons hide these delays? Why don’t they meet the delivery deadlines? There are many causes that cause these undesirable situations for the supply chain. Some are directly related to inadequate supplier management, but others have to do with the organization of the purchasing and supply process itself.
Let’s see some of these reasons and what to do on our part to face this type of situation:
- Ineffective purchasing planning
Purchase planning is related to the correct identification of the needs of your company. On some occasions, there are discrepancies derived from the late detection of the need for shipping supplies, which causes the purchase to start with a delay. To overcome this backlog, the purchasing process must be optimized in order to reduce reaction time.
On the other hand, it is advisable to make forecasts of anticipated purchases based on the seasonal variations of the stock. This advance planning allows the company’s supply to be managed in a more orderly manner.
- A ‘lead time’ by the supplier that is too tight
Tight delivery times Lead time refers to the time that runs from the beginning of the production process to its end and, later, the transport of the product to its destination. When negotiating with suppliers, they have their own time calculations that allow them to ensure what delivery time they work with.
When searching for and negotiating with suppliers, sometimes the greatest emphasis is on price. However, meeting delivery deadlines is crucial for the future of the supply chain. Some companies place orders with more than one supplier in order to dilute the risk in the event of incidents.
- Absence of penalty for late supplier delivery
The strength of a contract is often underestimated. However, this is one of the best weapons to counteract delays in the delivery of orders by the supplier. The inclusion of penalties for delay is an incentive for the provider.
On the other hand, from the purchasing part, it is necessary to clarify what delivery times we are talking about for each order. Ideally, replace imprecise words like “immediate” or “urgent” with a realistic numerical deadline.
- Delays derived from seasonality
Throughout the year, the supplier may face their own peaks of activity and vacation periods or holidays , so it is something that must be taken into account when planning the purchase of supplies. It is convenient to exchange the work calendar in order to avoid unexpected complications.
- Problems at customs
If the operation is carried out internationally, it is necessary to ensure that all the documentation and certificates that accompany the merchandise are correct. In addition, it is convenient to play with a certain margin of maneuver in case complications arise at customs.
- Lack of effective communication
Proper supplier management is based on effective communication between both parties.
In this sense, when negotiating the contract with the supplier, the lines of communication must be defined between both parties.
As for delays in supplier delivery times, some have an information system that notifies them of an incident so that the purchasing department can take it into account.
As you have seen, the reasons behind failures in supplier delivery times are not always the fault of the latter. In many cases, it is the purchasing department that can do its bit to prevent this type of incident with merchandise orders .