Suppliers often find it difficult to see what’s really happening to their deliveries between the time that they leave the despatch bay, to the point they arrive at the Customer site.
Without the end-to-end integration of information, it’s a challenge to understand the true status of a delivery and difficult to act in a way that will manage customer expectations.
Instead, delivery status enquiries are handled by people reacting to information they must relay to a number of other people in different organisations with all the opportunity for error and delay that presents. Companies who do not have delivery visibility can’t be proactive about solving issues or be consistent in delivering accurate on-time-in-full (OTIF) metrics. Suppliers who can get the right information to the right place or person on time has an advantage.
Equally, the Suppliers choice to invoice on despatch or upon receipt of a signed POD (Proof of Delivery), has both merit and risk. Releasing an invoice prior to receiving the final status of the delivery increases manual cost & effort dealing with customer claims and credits if the delivery fails. Waiting for a logistics provider to return a POD document will inevitably delay release of the invoice and consequently receipt of payment. The market average indicates 95% of all consignments are delivered on-time-in-full, therefore the requirement to have early notification on exceptions becomes even more compelling and enables the supplier to invoice with confidence and manage by exception.
Logistics partners are also under increased pressure to provide this information on a timely and compliant manor.