Tier 1 (lowest): An expedite was done if there was no system date given for the part (lead time infinity). The company could not cost effectively provide the same level of service to all customers in all situations, so it needed a way to differentiate expedites based on the importance of the customer and urgency of the need.Įxpedites were tiered, with the tier going up if the company did something wrong, based on standard criteria related to customer or level of need: When sent, it would transmit a system-generated e-mail to relevant parties.Ĭustomer service needed to know three things about the expedite: the customer who requested it, the requested shipping date, and the tier level of the customer. The form was auto-populated with the part, quantity and manufacturing location. The salesperson went into the order-entry form and clicked on the part number and expedite form icon in the ribbon. This was done in Oracle order entry, and attached to the order itself. One of the companies in this research study (Company X) created a custom form to track expedites. Some suppliers might not send the buyer a status list, further complicating the work of the buyer, who now needs to follow up on the orders.
#EXPEDITING EXPENSES MEANING UPDATE#
The buyers might need to update this information in their information system manually. Some suppliers send buyers a list with all their orders and the status of the ones that they haven’t delivered yet. Number of expedites received per week, by buyer, Salespeople are often frustrated because they cannot effectively respond to their customers.Ĭompanies need to be able to determine the following: It’s difficult to assess how well the supply chain is responding, and gauge the amount of wasted employee time due to duplicate requests. There might be no record of how many expedites have been requested, no idea of the current status, or estimates of the time and effort expended by stakeholders. Buyers don’t know whether the expedite is important or not, and often there are no rules for escalation. Sometimes buyers receive multiple phone calls or e-mails from the same person, or multiple individuals. The procedures in this part of the supply chain are often unstructured. Many small or mid-sized companies do not have a real-time tracking tool to record expedite requests, track response times and measure actual delivery improvements. In other cases, a company might have missed a delivery deadline, causing the order to be expedited. The company might not have the required parts or material on hand to produce or ship the order, so expediting is requested, often by the salesperson representing the customer. Sometimes a customer might place an order that needs to be produced, as it might not be in finished goods inventory. But determining the root cause helps the company to reduce and mitigate expediting problems over the long term.Ĭompanies place purchase orders for material based on their production schedules and their MRP system’s inventory at hand. Implementing a common process, having good relationships between suppliers and buyers, and ensuring that the organization has a policy for escalation is a good start toward improving the expedite process. Lack of accurate and timely information, use of multiple forms of communication and absence of a formal process for expediting are some of the challenges that buyers must deal with on a daily basis while discussing revised delivery dates. Even though “chasing” suppliers is not a job a buyer is supposed to do, it ends up doing so most of the time. Many stakeholders relying on delivery dates are involved in this process, especially when parts are critical. Reasons for expediting include missed contracted delivery dates, damage to stock, supplier-related issues and tight customer requirements.Įxpediting can be a burdensome and stressful strategy in the purchasing process. The expediting of raw materials, parts, systems and subsystems in inbound logistics is a common but necessary evil for many companies.
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