300,000+ shipments each year of plastic, glass, and metal containers and closures.
Berlin Packaging calculates On-Time Delivery by sales order line item. An item is considered On-Time when it ships to the customer on or before the latest order acknowledgement promise date that was mutually agreed upon. Berlin Packaging strives to provide Just-In-Time inventory to its customers. For this reason, Berlin Packaging will communicate changes in delivery dates from our contracted manufacturers to our customers, and we will change the agreed-to delivery date when the contracted manufacturer’s new delivery date is acceptable to the customer. Only shipping date changes acceptable to the customer are reflected in updated order acknowledgements. When changes are not acceptable to the customer, Berlin Packaging will work diligently with our supply chain to meet the required dates on the order acknowledgement.
Berlin Packaging captures and analyzes information electronically from its Oracle based ERP system to calculate On-Time Delivery. Data collection is done in accordance with Berlin Packaging’s ISO 9001:2008 certification, which undergoes a rigorous external ISO audit annually.
The published statistic for On-Time Delivery includes only warehouse shipments because Berlin Packaging can provide the very best Just-In-Time delivery with warehouse programs. With a warehouse stocking program, Berlin Packaging can buffer the delivery deficiencies of the manufacturers.
We also monitor and track On-Time Delivery for direct shipments. We continually work with our suppliers to improve their performance with On-Time Delivery to our locations and directly to customers. With a warehouse stocking program, changes in manufacturing lead times do not impact the customer in most cases because of the safety stock inventory held in Berlin Packaging’s warehouses.
Berlin Packaging works very hard at servicing its customers. The On-Time Delivery metric is demonstrated proof of our success and commitment. If your business is drop ship and you are not satisfied with delivery performance to your organization, consider moving to a Just-In-Time Warehouse Delivery program through Berlin Packaging.
On-Time Delivery is calculated for all orders that are filled from our warehouses. Regardless of whether the order is covered by a supply agreement or is filled from general stock, it is considered in the calculation.
A stocking agreement is a great way for a Berlin Packaging customer to ensure that the necessary inventory is available on a Just-In-Time basis. Inventory that is tied to a stocking agreement is held specifically for the customer and is replenished automatically based on an agreed upon methodology.
If there is general stock available, the promise date on the order acknowledgement will be the customer’s desired shipping date. If there is no general stock available, the promise date on the order acknowledgement will be the contract manufacturer’s shipping date as mutually agreed upon between all parties.
Because of the purchasing power of Berlin Packaging, we have the ability and flexibility to meet customer requirements in many situations where items are purchased without agreements and from general stock. The purchasing power of Berlin Packaging, however, is not a substitute for the security of a stocking agreement.
The calculation of On-Time Delivery employed by Berlin Packaging uses the latest promise date on the order acknowledgement, as mutually agreed upon. This date is often the same as the customer requested date. There are situations at the time of purchase order placement with Berlin Packaging when the customer requested date cannot be met. This happens most often on orders that are not tied to a Just-In-Time stocking program. To get the best Just-In-Time delivery, work with your Berlin Packaging Sales Consultant to establish a Just-In-Time stocking program.
On-Time Delivery is always calculated based upon the relationship between the latest promise date on the order acknowledgement and the order ship date. The scheduled ship date should be the same as latest promise date on the order acknowledgement, as mutually agreed upon.
Since On-Time Delivery is calculated by sales order line item, we can calculate On-Time Delivery by account by extracting all sales orders for a given customer. Berlin Packaging’s Oracle based ERP system gives Berlin Packaging the ability to analyze On-Time Delivery in many different ways including by customer, vendor, and product. These analyses are used to improve our Just-In-Time Delivery. We are always happy to share and compare the data with you and answer any questions you may have.
There are two fundamental reasons for a difference in the On-Time Delivery performance: differences in calculation methodology and differences in the data.
Berlin Packaging employs a single, standard methodology for calculating On-Time Delivery. This is done to institutionalize a continuous improvement process. If the calculation methodology employed by Berlin Packaging does not meet your business needs, Berlin Packaging can tailor a tracking method that fits. A discussion with your Berlin Packaging Sales Consultant is the place to start.
Another source of potential difference in reported On-Time Delivery rates is with data. As an example, Berlin Packaging uses the latest promise date on the order acknowledgement as the date to determine late or On-Time, and a customer may use the purchase order desired receipt date. Again, a discussion with Berlin Packaging about reconciling the sources of data is the place to start.
Berlin Packaging proactively monitors manufacturing lead times. As changes in lead time occur, we inform our customers, get feedback, and make appropriate changes in order patterns for items covered under a stocking agreement. The net result is that Berlin Packaging buys inventory on the customer’s behalf to meet the Just-In-Time stocking needs of its customers. There is no correlation between current lead time and the Just-In-Time Delivery calculation. The meaningful communication between Berlin Packaging and its customers allows Berlin Packaging to successfully fulfill customer needs.
A partial shipment is a shipment where the quantity delivered is less than the order acknowledgement quantity. Partial shipments are not considered on-time unless the customer accepts the partial shipment as meeting their needs.
There is no difference in the calculation of On-Time Delivery for a customer pick-up. The shipped date will be recorded as On-Time when the carrier arrives on or before the promise date on the order acknowledgement. If the carrier arrives after the promise date on the order acknowledgement, the order will still be considered as On-Time if the inventory was available for pick-up on or before the promise date on the order acknowledgement.
Backorders are orders where additional inventory is required before the order can be fulfilled. Backorders that will be delivered after the latest promise date on the order acknowledgement are considered late. For orders not covered by a stocking agreement, a backorder will be acknowledged with the date it will be available from the contract manufacturer. For orders covered by a stocking agreement, a backorder will be acknowledged with the customer’s desired date if the backorder was caused by Berlin Packaging or the contract manufacturer.
Credit holds are considered as on-time if the product is available for shipment on or before the latest promise date on the order acknowledgement.