Delivery
Requirements
AWIE requires
suppliers to target 100% on-time
delivery. On-time delivery is a major
component of AWIE's measurement of the
supplier's performance. Suppliers are
required to notify AWIE in writing
within 1 business day in the event of
anticipated delays in manufacture of
product for which a purchase order has
been placed. Such notification shall
include identification of the root cause
and supplier's corrective action plan.
There is no
such thing as backorders & replacement
to AWIE; these are lost sales to both
AWIE and our suppliers. If we cannot
deliver on-time, our customers know
someone who can. Our goal is to provide
100% on-time delivery to our customers
and use this as a competitive advantage.
The results are increased sales for all
of us.
Delivery dates are
based on the requirements set by the ERP
(Enterprise Resource Planning) system
using our Marketing Department's
forecast. Deliveries are set according
to leadtime, order minimums and
inventory levels. Should a supplier's
lead-time change, notify AWIE's
purchasing department as soon as
possible to minimize the impact.
While AWIE promotes
on-time delivery, we do not promote
stocking excess inventory to cover
delivery requirements. Excess inventory
is costly to all. Instead of stocking
inventory, AWIE encourages the
implementation of Just-In-Time and Lean
Six-Sigma as a means of providing
reduced lead-times.
Delivery Performance
Measurement
AWIE tracks supplier
delivery performance and makes
purchasing decisions based partly on
on-time deliveries. AWIE's on-time
delivery window is 5 working days early
and 0 days late. Late deliveries are
rated more negatively than the early
deliveries. Consideration must be given
to transit times, customs inspection
and/or holidays. Should a supplier have
reason to believe a delivery will not be
made on the scheduled due dates, AWIE
shall be notified immediately.