Posts Tagged shipping

It’s not an easy job.  An optimized Order-to-Ship business process offers continual progress towards improved cost control and delivery performance.

However, there might be a few challenges in the systems, including:

• Rework to correct data accuracy issues
• Late shipments and setbacks in delivery performance
• Increased customer complaints
• Time spent on complaint resolution
• Poor management of backorders
• Inefficient order processing and fulfillment
• Untimely invoicing
• Diminished cash flow and sales margins

In an Aberdeen Research study called “Working Capital Optimization: Increase Cash Flow in the New Economy,” author Nari Viswanathan said that “Best-in-Class companies are 30% as likely as all others to use cash conversion metrics as part of their supply chain organization metrics.  Companies that embed cash conversion metrics into the set of supply chain metrics are twice as likely to have reduced their cash conversion cycle over the past year (45% versus 21%).  Some of the key metrics that have been adopted as part of the process are: Sales forecast accuracy, on-time shipping, on-time delivery, inventory turns, logistics costs as a percentage of sales, and gross profit margin.”

Achieving an on-time shipping and delivery system is an industry standard met by few.  Using JD Edwards can get you on your way, but will only take you so far.

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