Why Are Suppliers Always Late? Unpacking the Delivery Delays

One of my clients, A, often vents about how he constantly has to chase suppliers for delivery updates. Each time, the response is the same: "We’re very sorry. there’s a power outage," or "We’re experiencing a machine malfunction."

Chasing down deliveries can be a painful, frustrating, and sometimes even a hopeless endeavor. Logically, if a supplier has confirmed an order, they should be compelled to deliver on time. Yet, the reality is that many suppliers fail to meet promised deadlines, often citing a plethora of excuses.

So, what are the real reasons behind these delays?

1. Lack of Production Planning: Some suppliers simply don’t have a proper production plan in place, leaving them unaware of how to prioritize tasks.
2. Ineffective Scheduling: In some cases, production schedules are just for show. Workers may prioritize easier or more familiar products instead of following a structured plan.
3. Unawareness of Capacity: Suppliers might not fully understand their production capabilities, leading to overcommitment.
4. Material Procurement Delays: Long lead times for raw materials can also set back the entire production process.
5. Prioritization of Higher-Profit Orders: If a supplier receives a new order with a higher profit margin, they might bump your order down the line.

If we don’t grasp the nuances of production management and fail to identify supplier issues promptly, complaining won’t resolve the delivery delays.

When requesting quotes, it’s crucial to confirm delivery dates along with prices. Have you ever encountered suppliers who can provide a delivery date immediately? This often signals a problem. Sales reps, even senior executives, may not have a clear understanding of production schedules and material availability. Typically, they’re giving you a rough estimate rather than a reliable timeline.

We often demand fixed and short delivery timelines without analyzing the supplier's capacity or examining their production processes on-site. This lack of insight can lead to missed deadlines.

To improve delivery accuracy, we need to delve deeper into the supplier’s production planning. Visiting the supplier's site allows us to observe their processes firsthand. Here’s what to focus on:

1. Queue Time: The time spent waiting to start production.
2. Setup Time: Time taken to change molds or adjust equipment settings for a specific product.
3. Run Time: The actual time required for processing the products.
4. Waiting Time: The duration products sit after processing and before moving to the next step.
5. Transportation Time: The time needed to transfer products to subsequent operations.

How to Improve Delivery Accuracy?

To ensure that your suppliers meet delivery deadlines, consider implementing the following strategies:

• Conduct Regular Audits: Schedule visits to suppliers to audit their production lines and processes. This helps identify bottlenecks and inefficiencies.
• Establish Clear Communication: Maintain open lines of communication to address issues as they arise, rather than waiting for a delivery to become overdue.
• Collaborate on Solutions: Work with suppliers to develop realistic timelines and address any constraints they might be facing.
• Set Up Buffer Times: Build buffer periods into your procurement timelines to accommodate unforeseen delays without disrupting your supply chain.

By understanding the complexities of your suppliers' operations and maintaining proactive communication, you can significantly improve delivery accuracy and build stronger partnerships.

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