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Delivery Performance

Delivery performance (DP) is a broadly used standard KPI measurement in supply chains to measure the fulfillment of a customer's demand to the wish date. Following the nomenclature of the DR-DP-Matrix three main approaches to measure DP can be distinguished:

  • DP_{T}^{V}
  • DP_{D}^{S}
  • DP_{T}^{S}
Type of measurement: volume (V)/singular(S)
Type of view: on time (T)/ delivery (D)

01Volume/on time

Formula

If ((Demand_{p,c}+Backlog_{p-1,c})>0)

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

Else

NULL

Demand:= customers wish 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: DP_{p,c}={\frac {\sum _{p,c}(DP_{T}^{V})}{count_{p,c}(DP_{T}^{V}<>NULL)}}

whereas p is determined by demand period

02Singular/delivery and singular/on time

Singular case definition

To fit to the needs of the environment, the granularity of a singular case (DP_{*}^{S}) has to be defined. In general a singular case is described by a n-Tuple 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

  • DP_{D}^{S}
After a singular case has been delivered to the customer its DP is measured as follows:
If (wish date = arrival date) then
DPsingular case=1
else
DPsingular 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 performance is calculated as follows:

DP_{p,c}={\frac {\sum _{p,c}(DP)}{count_{p,c}(singularcases)}}

whereas p is determined by the arrival date

  • DP_{T}^{S}
After a period has elapsed all singular cases with wish date within period are considered and their DP is measured as follows:
If (wish date = arrival date) then
DRsingular case=1
else
DRsingular 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 performance is calculated as follows:

DP_{p,c}={\frac {\sum _{p,c}(DP)}{count_{p,c}(singularcases)}}

whereas p is determined by the first confirmed date

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Sources and credits

This article is adapted from the Wikipedia article Delivery Performance, written by its contributors and licensed under CC BY-SA 4.0. Fathomly has changed the layout, removed citation markers, navigation and maintenance notices, and adjusted punctuation. This adapted version is shared under the same license. For references, see the original article.

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