Delivery Reliability

Delivery Reliability (DR) is a broadly used standard KPI measurement in supply chains to measure the reliability of a supplier's delivery date confirmation for a customer's demand. Following the nomenclature of the DR-DP-Matrix, three main approaches to measure DR can be distinguished:

• $DR_{T}^{V}$ (=CLIP)
• $DR_{S}^{D}$
• $DR_{S}^{T}$

Type of measurement: volume (V)/singular(S)

Type of view: on time (T)/ delivery (D)

Volume/On Time (=CLIP)

Formula

If ((Demand_p,c + Backlog_{p − 1,c}) > 0)

$DR_{T}^{V}$ = $\frac{Delivered_{p,c} + Predelivery_{p-1,c}}{Demand_{p,c} + Backlog_{p-1,c}}$

Else

NULL

Demand:= suppliers confirmed quantity c:= product identifier p:= Time period e.g. a day, a week, a month ...

The cumulation over a period and a group of product identifiers c is done as follows: $DR_{p,c} = \frac{\sum_{p,c}(DR_{T}^{V})}{count_{p,c}(DR_{T}^{V}<>NULL)}$

whereas p is determined by demand period

Singular/Delivery and Singular/On Time

Singular case definition

To fit to the needs of the environment, the granularity of an singular case ($DR_{*}^{S}$) has to be defined. In general a singular case is described by a n-Tupel consisting of a set of the following order and delivery details:

• order number
• customer identifier
• product identifier
• wish date of customer
• confirmed date of supplier
• ship to information
• delivery date
• delivery note number

Formula

• $DR_{S}^{D}$

After a singular case has been delivered to the customer its DR is measured as follows:

If (wish date <= arrival date <= confirmed date of supplier) then

DR_{singular case}=1

else

DR_{singular case}=0

arrival date = delivery date + transit time

By cumulating the results of singular cases over a certain period p and, if necessary, additional criteria c (e.g. customer, product, ...) the delivery reliability is calculated as follows:

$DR_{p,c} = \frac{\sum_{p,c}(DR)}{count_{p,c}(singular cases)}$

whereas p is determined by the arrival date

• $DR_{S}^{T}$

After a period has elapsed all singular cases with first confirmed date within period are considered and their DR is measured as follows:

If (wish date <= arrival date <= confirmed date of supplier) then

DR_{singular case}=1

else

DR_{singular case}=0

arrival date = delivery date + transit time

By cumulating the results of singular cases over a certain period p and, if necessary, additional criteria c (e.g. customer, product, ...) the delivery reliability is calculated as follows:

$DR_{p,c} = \frac{\sum_{p,c}(DR)}{count_{p,c}(singular cases)}$

whereas p is determined by the first confirmed date

Result

0%≤$DR_{T/D}^{S/V}$≤100%