The Perfect Order

As customers get even more demanding, manufacturers are under pressure to get it right every single time. . .or else.

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This article is adapted from material appearing in the book Supply Chain Management Best Practices by David Blanchard (2007, John Wiley & Sons) and is used with permission.

s the pace of commerce has dramatically increased, the patience of customers has similarly decreased. “Better, faster, and cheaper” just isn’t good enough any more; customers today are demanding perfect orders, shipped and delivered on time to the minute, at a cost that barely leaves any margin for error—or profit. Every manufacturer faces the same crucial challenge: Your customer expects perfect orders and shipments every time—can your supply chain deliver them, every time? If you can’t, then your company faces the consequences of invoice deductions, lost sales and even lost customers if your customer’s expectations are not met. At issue, though, is the definition of a “perfect order.” According to Edward Marien, long-time director of supply chain management programs at the University of Wisconsin, customers are asking for: 1. The Right Product in the 2. Right Quantity from the 3. Right Source to the

4. Right Destination in the 5. Right Condition at the 6. Right Time with the 7. Right Documentation for the 8. Right Cost. Failure to deliver on any of these rights can be costly because business customers are just like consumers—they prefer to do business with companies that can deliver perfect orders and shipments every single time. Anything less is simply unacceptable. Largely because their industry is so heavily influenced by the demands of major retail customers, the grocery industry (including food, beverage and consumer products manufacturers) focuses intently on perfect order metrics. According to Dee Biggs, director of customer logistics with grape-based product maker Welch Foods Inc., Concord, Mass., manufacturers need perfect...