Delivery readiness

Willingness to deliver is missing: shelf gap for dog food

For suppliers, readiness for delivery is the ability to be able to deliver the products ordered on the basis of incoming customer orders or orders within the specified delivery time immediately from stock .

General

The readiness for delivery is part of the operational function of logistics and is a measure of the availability of products. It is the ability of a company to completely fulfill incoming customer orders or orders from the stocks held at the order penetration point . In the business -to-business relationship, the readiness to deliver plays an important role in the rating of the suppliers ( supplier evaluation ). In the retail trade , the shelf gap is a visible sign of a lack of readiness for delivery.

calculation

The starting point for measuring readiness for delivery is the incoming order . From the large number of formulas for calculating the readiness for delivery, the economic key figure of the degree of readiness for delivery ( ) should be mentioned: ${\ displaystyle LBG}$

{\ displaystyle LBG = {\ frac {\ text {Number of executed orders}} {\ text {Number of total orders}}} \ cdot 100 \, \% \,}

.

The more orders that can be fully executed immediately, the higher the level of readiness for delivery and vice versa.

The degree of readiness for delivery depends essentially on the safety factor . The safety factor determines the level of the safety stock and is calculated as the "inverse standard normal distribution " of the desired readiness for delivery:

Safety factor (SF)	Readiness for delivery (LB)
0	50.0%
1	84.1%
1.04	85.0%
1.28	90.0%
1.65	95.0%
2.05	98.0%
2.33	99.0%
3.09	99.9%

With a safety factor of 0, the readiness for delivery is 50%. As the safety factor increases, the readiness for delivery increases. A desired readiness for delivery of 99.9% requires a safety factor three times as high and therefore also three times as high a safety stock compared to a readiness for delivery of 85.0%.

economic aspects

The readiness for delivery is highest when stocks are high , but this is accompanied by high storage risks , storage costs and capital commitment costs . Many companies are content with a delivery readiness of 90 to 95%, because an LBG of 100% would mean disproportionately high costs, while the simultaneous increase in sales is usually lower than the storage-related increase in total costs . In large parts of the industry (e.g. with suppliers ), there must always be 100% readiness for delivery due to just-in-time production . The automotive industry is forcing its automotive suppliers to deliver certain spare parts at fixed times.

If the readiness for delivery is exhausted, there is a shortfall in the given order , which also causes shortfall costs. The safety stock can be interpreted as warehouse stock, which is intended to ensure readiness for delivery. There is a positive correlation between the safety factor calculated from the safety stock and the readiness for delivery , because the readiness for delivery increases with the increasing safety factor. In turn, a high level of readiness to deliver helps increase customer satisfaction and loyalty .

Readiness for delivery can be improved through precise sales planning . The readiness for delivery can only be measured when there is a demand . When comparing the supply chains, it tends to be highest in production companies, very high in wholesaling , and already lower in retailing . An example is the bar assortment of the intermediate book trade , which can usually be delivered immediately, and which can immediately deliver the books that are "out of stock" in the book retail trade . If you look at the products, fast- moving products for everyday use are more deliverable than slow- moving products such as luxury goods . The readiness for delivery therefore also depends on the rotation of the goods .

Demarcation

The delivery service is characterized by the components delivery time , readiness for delivery and delivery reliability . The delivery is often regarded as a synonym of readiness for delivery in the literature, however, refers to the preferred date of the customer. This measures how many customers can be served on their desired date. It measures the frequency with which the delivery time requested by the customer can also be promised. In American specialist literature, readiness for delivery is usually translated as “service level” or “service rate”.

literature

Bernd W. Wirtz: Multi-channel marketing . Gabler Verlag, 2008, ISBN 978-3-8349-0214-6 .

Individual evidence

↑ Wolf-Rüdiger Bretzke, Logistic Networks , 2010, p. 131
↑ Matthias Steinbrüchel, The company's materials management , 1971, p. 27
↑ Werner Kirsch / Ingolf Bamberger / Eduard Gabele / Heinz Karl Klein, Betriebswirtschaftliche Logistik , 1973, p. 291
↑ Werner Gladen, KPIs and Reporting Systems , 2001, p. 46
↑ Jürgen Hesse / Matthias Neu / Gabriele Theuner, Marketing: Basis , 2007, p. 244
↑ Hans-Christian Pfohl, Logistics Systems: Business Basics , 2000, p. 115 f.
↑ Werner Delfmann, delivery-time-oriented distribution planning , 1978, p. 1
↑ Gerd Rainer Wagner, The delivery time policy of companies , 1975, p. 29 fn. 6

[1] Wolf-Rüdiger Bretzke, Logistic Networks , 2010, p. 131

[2] Matthias Steinbrüchel, The company's materials management , 1971, p. 27

[3] Werner Kirsch / Ingolf Bamberger / Eduard Gabele / Heinz Karl Klein, Betriebswirtschaftliche Logistik , 1973, p. 291

[4] Werner Gladen, KPIs and Reporting Systems , 2001, p. 46

[5] Jürgen Hesse / Matthias Neu / Gabriele Theuner, Marketing: Basis , 2007, p. 244

[6] Hans-Christian Pfohl, Logistics Systems: Business Basics , 2000, p. 115 f.

[7] Werner Delfmann, delivery-time-oriented distribution planning , 1978, p. 1

[8] Gerd Rainer Wagner, The delivery time policy of companies , 1975, p. 29 fn. 6