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A delivery schedule is an agreement between buyer and seller outlining when and how often goods will be delivered, with flexibility but strong parameters. It should be periodically reviewed to meet market needs, with changes often dictated by the buyer. Delivery schedule adherence is analyzed to ensure on-time deliveries, and poor adherence can negatively impact productivity, customer relationships, and inventory levels.
The delivery schedule is an agreement between the buyer and seller about when and how often the goods will be delivered. It is a plan that outlines the details of future delivery periods. This can be a mutually determined schedule or dictated by the buyer. It is often drafted with some flexibility in terms, although there are also often strong parameters regarding delivery times and volume that are intended to protect both buyer and seller.
In order to ensure that it continues to meet market needs, a delivery schedule should be reviewed periodically. In most cases, the buyer will dictate the changes. The most common reason for a change of plans is that the buyer needs more or fewer deliveries of the product or service. In some cases that change can be so dramatic that the seller will no longer be able to meet the buyer’s requirements. This could involve the buyer finding a new vendor or integrating the current vendor with a new vendor.
Often, the delivery schedule will take into account some changes in the buyer’s needs. This includes an allowance for fewer or more product deliveries and some schedule changes. In most cases the seller is guaranteed that a certain quantity of product will be ordered. There may be a clause granting the seller a cancellation fee if the buyer does not request the contracted quantity of the product. This commission may also be applied in the event of a delay in the delivery of the requested product.
The delivery schedule may be subject to periodic analysis via a metric known as delivery schedule adherence. This process involves determining whether deliveries are on time and in accordance with schedule frequency. A formula is used to determine what percentage of deliveries have been made on schedule. Many companies will do this analysis for each vendor and then rank them.
Sticking to a delivery schedule allows the buyer to continue business as usual. If the salesperson doesn’t meet the schedule, it can have a negative effect on productivity, customer relationships, and inventory levels. Poor adherence to the schedule can run out of stock or cause overstocks that increase the buyer’s maintenance and storage costs. Depending on the product, it could also cause waste due to expiration or force the buyer to cut prices to move inventory.
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