Delivery Performance

Delivery performance (DP) is a broadly used standard KPI measurement in supply chains to measure the fulfillment of a customers demand to the wish date.^[1] Following the nomenclature of the DR-DP-Matrix three main approaches to measure DP can be distinguished:

• [math]\displaystyle{ DP_{T}^{V} }[/math]
• [math]\displaystyle{ DP_{D}^{S} }[/math]
• [math]\displaystyle{ DP_{T}^{S} }[/math]

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

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

Volume/on time

Formula

If ([math]\displaystyle{ (Demand_{p,c} + Backlog_{p-1,c})\gt 0 }[/math])

[math]\displaystyle{ DP_{T}^{V} }[/math] = [math]\displaystyle{ \frac{Delivered_{p,c} + Predelivery_{p-1,c}}{Demand_{p,c} + Backlog_{p-1,c}} }[/math]

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: [math]\displaystyle{ DP_{p,c} = \frac{\sum_{p,c}(DP_{T}^{V})}{count_{p,c}(DP_{T}^{V}\lt \gt NULL)} }[/math]

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 a singular case ([math]\displaystyle{ DP_{*}^{S} }[/math]) 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

• [math]\displaystyle{ DP_{D}^{S} }[/math]

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

If (wish date = arrival date) then

DP_{singular case}=1

else

DP_{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 performance is calculated as follows:

[math]\displaystyle{ DP_{p,c} = \frac{\sum_{p,c}(DP)}{count_{p,c}(singular cases)} }[/math]

whereas p is determined by the arrival date

• [math]\displaystyle{ DP_{T}^{S} }[/math]

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

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 performance is calculated as follows:

[math]\displaystyle{ DP_{p,c} = \frac{\sum_{p,c}(DP)}{count_{p,c}(singular cases)} }[/math]

whereas p is determined by the first confirmed date

Result

0%≤[math]\displaystyle{ DP_{T/D}^{S/V} }[/math]≤100%

References

See also

• Delivery reliability

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