Delivery Promise and Availability Check

Most shipping problems arise at the time of ordering , not during the shipping phase. When an unattainable deadline is given, all subsequent processes become a race lost from the start.

Scope

  • Availability check: Checking whether the requested quantity can actually be available on the requested date. This check should look not only at current stock but also at reserved quantities, pending orders, incoming supply orders, and planned production.
  • Delivery timeline based on capacity: If there is no stock, a realistic delivery date will be generated by considering production capacity and lead time.
  • Backward planning: Calculating the delivery time from the customer's requested date, subtracting transportation time, loading time, picking time, and goods preparation time, to reach the latest delivery time from the order date.
  • Delivery schedule: Take into account which days vehicles are dispatched to which regions. A delivery to a region that departs on Tuesday should not be promised on Wednesday.
  • Customer delivery window: The so-called consideration of the buyer's goods acceptance days and times.
  • Allocation rules: How to distribute stock of scarce products among customers: priority order, quota, first come first served, or customer segment-based allocation.
  • Alternative options: If the requested date cannot be met, offering partial delivery, substitute products, or shipment from a different warehouse.
  • Re-commitment: Updating the date and proactively notifying the customer when conditions change.


In the real business world

In many businesses, sales representatives state the delivery date based on their own experience: "We'll ship within two weeks." This estimate is sometimes accurate, but often it's not. The problem isn't the representative's lack of knowledge; it's that they are unaware of the stock levels, capacity, and shipping schedule .

When availability control is implemented in the system, the date ceases to be an estimate and becomes a calculated result. The initial effect is often surprising: the given dates get longer, but they hold true . From the customer's perspective, this is far more valuable than a short but broken promise.

Benefit to the customer

  • The reliability of the given dates increases; the customer can make their own plans.
  • Orders that cannot be fulfilled are identified in advance.
  • Scarce products are allocated according to strategic priority.
  • Commission fees for expedited shipments decrease.
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