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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:

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

Volume/on time

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Formula

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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

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Singular case definition

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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:

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

Formula

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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

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0%≤≤100%

References

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

See also

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