Depth of delay calculation

Description

Depth of delay is one of the key control indicators in improving manufacturing performance. A component that plays an important role in the key measure of service level. Depth of delay adds a qualitative dimension.

We obtain the depth of delay also called the average delay by dividing the sum of the days of delay (difference between the delivery date agreed with the supplier and the receipt of the goods) recorded for total orders placed by the number of such orders over a given period.

It is more than essential to monitor the evolution of this indicator because it gives a global view of all possible deviations of a supplier and to set up a classification according to their reliability. Thus be able to see and quantify the evolution of the average delay and subsequently relativize if the depth of delay is less.

The importance of this component of the service level is reflected in decision-making for a procurement authority, for example. Indeed, improving this indicator has an immediate impact in the supply chain, sales and invoicing. It is therefore crucial to have this indicator in a company.

 

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