In the world of a buyer, timelines aren’t just estimates; they’re commitments. For businesses, a delay in receiving essential components or services can snowball into larger operational disruptions, affecting output, quality, and customer relationships. But what happens when you’re saddled with a supplier known for poor delivery performance? Enter the world of expediting and learn The Power of Expediting.

Expediting is a proactive approach in procurement and supply chain management where you oversee the timely production, shipping, and delivery of products or services. Instead of waiting for delays to happen, expediters step in to ensure things move smoothly, predict potential bottlenecks, and resolve issues in real-time.

The Power of Expediting

Expediting is an essential function in procurement and supply chain management, focusing on ensuring the timely production, shipping, and delivery of products or services. This proactive approach involves continuous oversight and intervention to keep the supply chain flowing smoothly and to preempt potential delays.

As an expediter, your primary goal is to monitor and facilitate the progress of orders from inception to final delivery. This involves actively tracking the production process to ensure that goods are manufactured according to schedule, regular communication with suppliers to verify progress and identify any deviations from the plan, and overseeing the logistics to guarantee that products are shipped on time.

You also track shipments to ensure they reach their destination as planned, monitoring transit times, handling customs clearance if needed, and coordinating with receiving departments to prepare for the arrival of goods.

Instead of waiting for delays to occur, expediters take a proactive stance by anticipating and addressing potential issues before they impact the supply chain. This requires understanding the entire supply chain process to identify potential bottlenecks, such as supplier capacity issues, logistical constraints, or regulatory hurdles.

When problems arise, such as a delay in production or a shipping disruption, you step in to resolve these issues immediately, which might involve finding alternative suppliers, expediting shipping methods, or adjusting schedules to accommodate delays. Constant and clear communication with all stakeholders, including suppliers, logistics providers, and internal teams, is crucial to keeping everyone informed, managing expectations, and facilitating the quick resolution of issues.

Expediting offers several significant benefits for organizations. By proactively managing the supply chain, expediters minimize the risk of delays, ensuring that products and services are delivered on time, which is crucial for maintaining customer satisfaction and meeting contractual obligations. Regular communication and collaboration with suppliers foster stronger relationships, leading to better cooperation and more favorable terms.

Preventing delays and resolving issues promptly can lead to significant cost savings by avoiding expedited shipping fees, reducing downtime, and maintaining production schedules, contributing to a more efficient and cost-effective supply chain. Timely delivery of goods helps maintain optimal inventory levels, reducing the need for excess stock and minimizing carrying costs, while ensuring that production processes run smoothly without interruptions due to material shortages.

Imagine you are a procurement specialist for a manufacturing company that relies on just-in-time delivery of components to maintain production schedules. One of your key suppliers is experiencing delays due to equipment failure.

As an expediter, you regularly check in with the supplier to assess the severity and expected duration of the delay, analyze how the delay will affect your production schedule, and identify which components are at risk of being delayed.

You then work with the supplier to expedite repair services or find an alternative manufacturing line to meet the production deadlines, explore alternative suppliers or temporary solutions to cover the shortfall, keep your internal production team informed about the potential delays and the steps being taken to mitigate them, and update your logistics partners on any changes to the shipping schedule. By successfully expediting the production and shipping of the delayed components, you ensure they arrive just in time to maintain your production schedule without interruption.

Expediting is a vital function in procurement and supply chain management that ensures the smooth and timely delivery of products and services. By taking a proactive approach, expediters can predict and resolve issues before they cause significant disruptions, enhancing efficiency and reliability, contributing to cost savings, and fostering stronger supplier relationships. As a procurement specialist, mastering the art of expediting is crucial for maintaining a resilient and responsive supply chain.

Real-Life Examples of Expediting with Poor-performing Suppliers

Electronics Manufacturer and Component Delays

A leading electronics manufacturer experienced recurring delays from a critical component supplier. With a product launch imminent, they couldn’t afford slips. The company sent an expediter on-site to the supplier’s factory. The expediter identified that a particular machine calibration was the bottleneck. By addressing this issue and monitoring the production line, components started flowing in a timely manner, saving the launch.

Automotive Giant and Seat Supplier

An automotive company was grappling with an upholstery supplier who frequently missed deadlines, causing assembly line halts. Upon expediting, it was discovered that the supplier was facing labor shortages. The expediter coordinated temporary labor influx and training, restoring the balance and ensuring the carmaker’s assembly lines kept humming.

Pharmaceutical Firm and Active Ingredient Delays

A pharmaceutical company depended on an overseas supplier for a crucial active ingredient. Delays, exacerbated by customs and transportation issues, were common. An expediter was engaged to streamline and monitor the process. By liaising with shipping agents, customs officers, and the supplier, a ‘fast-track’ delivery route was established, ensuring timely delivery and preventing medicine shortages.

Strategies for Expediting with Poor-performing Suppliers

On-site Monitoring:

One of the power of expediting methods is being present at the supplier’s location offers real-time insights into production challenges and provides immediate solutions. It also has a psychological aspect, ensuring the supplier gives priority to your order.

Regular Reporting:

Asking for frequent status updates holds suppliers accountable. If they know they’re reporting progress every two days, there’s an added incentive to stay on schedule.

Establishing Communication Protocols:

Ensuring there’s an open line of communication between the supplier and your company can preempt many issues. Suppliers are more likely to flag problems early on if they know they’re being heard and solutions are collaborative.

Training and Resources:

Sometimes, suppliers want to perform better but lack specific skills or resources. Identifying these gaps and providing training or tools can enhance their performance.

Legal and Contractual Incentives:

Contracts can be structured with penalties for delays and bonuses for early or on-time deliveries. This financial incentive often nudges suppliers to prioritize punctuality.

Summary: The Power of Expediting

While it’s ideal to work with suppliers that are consistently reliable, sometimes business realities dictate otherwise. In such cases, rather than accepting poor performance as a given, expediting emerges as a potent tool to bring predictability and efficiency to the procurement process. After all, in the intricate dance of supply chain management, ensuring every partner moves to the same rhythm is the key to a seamless performance.

Learn more about The Power of Expediting in Johan Rutfors’ course What is expediting. What is expediting and how is it performed? To make something happen more quickly – to get your deliveries are key focus areas.

Note: Illustration to the blogpost “The Power of Expediting – a tool for operative buyer” was created by DALL-E on May 26, 2024.

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