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Tips for Improving On-Time Delivery Rates

Theory into practice text on a blackboard It was once true that you could get away with fairly accurate on-time delivery rates. Something around 85, 90, or 95 percent was considered good or great. Now days, with the improvements to technology and heightened expectations, you are expected to land somewhere in the 98 or 99th percentile. Is your company missing the mark? If so, maybe you should reconsider your processes and look for ways to improve on-time delivery rates. The Value of Being On-Time Being on time isn’t exclusive to business; it’s a life practice. Whether you are picking your spouse up for a date, hanging out with a friend, or attending a seminar, being on time is respectful and beneficial for multiple reasons. You reap the full benefits of whatever it is you’re participating in, and you don’t miss out on things you should be a part of. While being on time is certainly a good habit to develop in your personal life, it is often required in the business world. That’s especially true when delivering goods and services to clients and suppliers. When you’re late even once, you risk ruining your reputation or losing business. The Negatives of Late Deliveries When deliveries are late, your company suffers. Here are a few of the biggest negatives:

  • Damaged Reputation. If nothing else, your reputation can be severely damaged for late deliveries. Clients lose trust in your ability to provide timely solutions and may go elsewhere when they are in a time-crunch.
  • Profit Loss. Your contract probably stipulates penalties and fees for late deliveries. This negatively affects your bottom line and requires you to pick up the slack elsewhere to meet daily, weekly, monthly, or quarterly financial goals.
  • Client Loss. In some situations, clients have no-forgiveness policies. One slip up can cost you a client for good.

How to Fix Your On-Time Delivery Issues If on-time deliveries are challenging for your company, you probably don’t have the right intelligence tools and systems in place. Here are a few tips to get you closer to the 98th or 99th percentile:

  • Discover the Problem. Before you can do anything else, it’s important to discover the root cause or underlying issue. What’s really going on? Until you discover the specific cause – or in many cases, causes – you won’t be properly prepared to implement change.
  • Controllable or Uncontrollable. After discovering the problem, you next have to ask whether it’s controllable or uncontrollable. Controllable factors include inadequate inventories, carrier issues, excessive loading times, incorrect data, and similar issues. Uncontrollable factors include weather, traffic, and transit delays.
  • Implement TMS. If the factors are controllable, odds are a sophisticated TMS can help you alleviate the problem and improve on-time delivery rates.

GTG Technology At GTG Technology, we offer one of the premier transportation management software solutions in the industry. Our cloud-based, fully integrated, comprehensive technology is proven to strengthen communication, alleviate issues, and improve on-time delivery rates for our clients. Stop damaging your reputation, diminishing profits, and losing clients, and contact us today for more information!

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