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My Introspective

by Laurus Nobilis
My BrainCast

Supply Chain

DIFOTAI – Delivered In Full (E)

DIFOTAI


How does customer service level influence the competitiveness and position in the market? Why and how the service level should be measured?

 

Posted: Dec 2011


 

Delivery "In Full"

 

Product availability is one of the most important prerequisites for success in the market. No other element of Marketing Mix can recuperate missing product. Therefore, availability and supply of the product to the customer is of the crucial importance.

Regular delivery, as per customer’s demand, is the base for the positive sales results, maintenance of revenue and profit, for customer’s satisfaction as well. Delivery "In Full" is the factor of DIFOTAI calculation

 

"In Full" Positive Impacts factors

Different factors influence Delivery In Full:

  1. Discipline in order taking (check SKUs, credit, customer code, assortment)

  2. DIFOTAI - delivery In Full Chart

    Better Shelf Life management local and central warehouse. ( full WMS on all plant warehouses)

  3. Focus on Demand Forecasting (measure weekly and by location)

  4. Optimization of FG stock coverage (weekly split, seasonal and peaks on specific strategic SKUs)

 

 

 

"In Full" Negative Impacts factors

The effectiveness of DIFOTAI can be influenced by proper execution of all functions. Efforts need to be synchronized, since errors created within one department can cause chain reaction in other departments. Success of the DIFOTAI and service to the customer is dependant on multiple factors...



On the other side, negative impact on Delivery In Full comes from following factors:

  1. Product is not available ( Stock Out )

  2. Unaccepted remaining shelf life of the product

  3. Double, incorrect orders

  4. Rejected ( by customer ) for late deliveries or out of delivery windows

  5. Rejected for damaged or mis-handled product

  6. Rejected for customers

  7. Various factors (ie. Full warehouse, strike, missing order number, not in the system, etc.)

  8. Order cancelled by the customer but already prepared

  9. Cancelled for credit/wrong customer

 

Improving "In Full" delivery

As it is already seen, different factors influence the “In Full” delivery. All of them are important for maintaining of regular supply of the product to the market. The “In Full” can be improved by influencing the following elements:

 

Delivery in Full Aspects of DIFOTAI

 

 

 

 

 

 

 

 

Related Reading:

DIFOTAI - Delivered In Full On Time Accurately Invoiced
DIFOTAI - Delivery In Full
DIFOTAI - Delivery On Time
DIFOTAI - Deliver Accurately Invoiced

 

 
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