And based on the current trends, it’s reasonable to expect the 95 percent requirement to become the minimum standard within the next five years, not only for these large retailers but also across most parts of the supply chain industry.Īt this point, the industry giants are coming down hard on delivery requirements as a way to deal with shifts in consumer buying patterns. To further put things into perspective for shippers, these on-time minimums are only going to shrink. Despite these averages, retailers are starting to apply the expectations their customers have of them upstream to their suppliers and carriers when it comes to delivery performance.
#Ontime delivery full
While many other big-box retailers also typically require a 95 percent minimum on-time performance from their suppliers, industry averages for prepaid full truckload and less-than-truckload shipments fall a little lower at 87 and 70 percent, respectively.
For example, Walmart’s new “on-time, in-full program” requires suppliers to show up on schedule with 97.5 percent of a food and beverage order in their trailer, according to a recent Transport Topics article. The “Amazon Effect” of customers wanting faster and more precise delivery seems to have completely crossed over from the B2C to the B2B world, too.
With less time to meet these shorter windows and generally tighter regulatory guidelines for carriers, manufacturers are facing some serious pressure to perform. As industry giants like Walmart and Amazon respond to rising consumer demand for instant shipments with free one-day shipping and same-day delivery options, the delivery window for suppliers and logistics providers is growing smaller and smaller.
0 kommentar(er)
