Integrating the performance management process of on-time delivery with suppliers

Abstract

This paper discusses the importance of integrating the performance management (PM) process of on-time delivery with suppliers and analyses the perceived degree of such integration. It describes how the PM process of on-time delivery is managed in manufacturing companies and compares the integration and management issues of on-time delivery between companies with high and low perceived on-time delivery performance. Analysis is based on a survey study of Swedish manufacturing companies in 10 industrial sectors. The focus is on on-time delivery from the respondents’ most important supplier. The PM activities defining metrics, target setting, measurement and analysis are not highly integrated between customers and suppliers when measuring on-time delivery. This is especially true for measurement activity, which is the activity with most issues to manage and integrate. The PM issues most significantly related to high on-time delivery performance were automated data collection, registration and report generation.