One crucial success factor in achieving customer satisfaction is a high standard of delivery reliability. Hengstler GmbH in Aldingen, Germany, can proudly claim a success story in this field. The story starts in 2012 when a specially adapted kanban system was introduced.
Delivery time is considered, in most cases, to be a decisive factor in providing perfect delivery service. However, in practice, it is delivery reliability that is of even more significant importance. It is not necessarily the actual time required before delivery takes place that is crucial, but far more the supplier's ability to adhere to the agreed delivery date. Hengstler GmbH, whose head office is in Aldingen, Germany, took the principle one step further than this some time ago. What really counts here is not the delivery date confirmed by the manufacturer, but the customer's preferred delivery date. In this way, planning activities are improved, in particular in connection with project business, and customers can rely on dependable deliveries. Where emergencies occur and a fast delivery is required, for example if an encoder needs replacing at short notice, Hengstler GmbH has, for more than 20 years, provided a "turbo deliveries" system that ensures receipt within 12 hours, depending on the model and assuming express dispatch.
The key figure measured at Hengstler is termed the OTD rate (on-time delivery), which indicates the number of orders supplied on time on the date given by the customer as the preferred delivery date. In 2010, the OTD rate was between 80% and 84%, which in itself is not at all bad, but not in the realms of peak performance. After implementing the specially tailored kanban system, the company has been able to increase this rate continuously since 2012 across the complete range of products manufactured by Hengstler. Delivery reliability today is at a stable figure in excess of 94%. This impressive rate is also reflected in numerous feedback responses from customers on vendor rating. Hengstler's delivery reliability is classified in these surveys across the board as excellent.
Since there is no let-up in the tendency to insist on just-in-time production, it is essential for component manufacturers like Hengstler GmbH to make every effort to adhere to agreed delivery times. Many customers now maintain far lower contingency stocks and, instead, rely on dependable deliveries for their production planning. At the customer end of the chain, this vastly reduces warehousing costs but relies completely on corresponding reliability and flexibility on the part of suppliers.
If you would like more detailed information on this topic, please send an email to info@hengstler.com or call +49 (0)7424 890.
