How to Ensure on-time Delivery for Cross-border Shipments?

Jun 14,2024
Industry News
For cross-border transport, how to ensure on-time delivery of goods? What factors affect delivery time? Strategic methods to improve on time delivery rate

Ensuring on-time delivery is a key success factor for businesses and sellers, and is essential for maintaining customer satisfaction, building brand loyalty, and maintaining competitive advantage. Ensuring on time delivery of goods is a complex but critical task for cross-border shipments. This blog will explore the complexity of on-time delivery, factors that affect on time delivery, and how ChinaDivision can help you achieve seamless and reliable transportation solutions.

on time delivery

What is on-time delivery?

On-time delivery (OTD) refers to the successful delivery of goods or services within the promised or agreed time.

Why is on time delivery important?

It is not only a basic requirement for logistics services, but also a key performance indicator (KPI) in logistics and supply chain management. It reflects the efficiency and reliability of the company's delivery process, and contains a comprehensive consideration of the company's supply chain management capabilities, logistics and transportation efficiency, and customer satisfaction. On-time delivery ensures customer satisfaction, repeat business, and market competitive advantage.

What is the standard for on-time delivery?

The standard for on-time delivery may vary depending on the industry, customer requirements, and the specific terms of the contract or agreement. Generally speaking, if the delivery occurs within the agreed delivery period or date range, it is considered on time delivery. However, some companies may have stricter standards, such as requiring delivery on or before a promised date. Standards for on-time delivery vary by industry and customer expectations, but typically include:

Promised delivery date: The date a company promises to deliver a product.

Grace period: A short period of time after the promised date, often used to account for minor delays.

Customer specifications: Any specific requirements set by a customer that may affect delivery time, such as a preferred delivery time or specific handling instructions.

Achieving high on-time delivery rates requires consistently meeting these standards, which requires careful planning and execution.

What factors affect delivery time?

A variety of factors can affect delivery time, including shipping distance, weather conditions, customs clearance, holidays, supplier reliability, and the efficiency of logistics partners.

For example, the following factors can affect transit time for cross-border shipments:

Customs clearance

Delays in customs clearance due to incomplete documentation, inspections, or regulatory compliance issues can cause significant delays in delivery.

Mode of transport

The mode of transport selected (air, sea, or road) affects transit time. Air is faster but more expensive, while sea is slower but more cost-effective.

Carrier Reliability

The performance and reliability of logistics providers play a critical role in meeting delivery deadlines.

Route Optimization

Efficient route planning can significantly reduce shipping time and avoid delays caused by traffic, weather conditions or geopolitical issues. Storms, hurricanes or heavy snow, for example, can disrupt shipping routes and cause delays.

Inventory Management

Proper inventory control ensures that products are available and ready to ship at any time, avoiding delays in order processing.

Political and Economic Factors

Geopolitical tensions, trade disputes or economic instability can affect cross-border shipping and cause longer shipping times.

Supply Chain Disruptions

Unexpected events, such as natural disasters, labor strikes or supplier issues, can cause supply chain disruptions and affect delivery times.

How to Calculate and Improve On-Time Delivery Rate?

To calculate on-time delivery rate, use the following formula:

On-time delivery rate = (number of orders delivered on time / total number of orders) × 100

Strategic Approaches to Improving On-Time Delivery Rate

Optimize Transportation Routes

Analyze your transportation routes and modes to identify bottlenecks and optimization opportunities, such as consolidating freight or leveraging intermodal transport.

Streamline customs clearance processes

Ensure all necessary documents are accurate and complete to avoid delays during customs clearance.

Implement real-time tracking

Utilize advanced logistics software for real-time tracking, route optimization, and inventory management. Real-time tracking systems monitor cargo transportation and proactively address potential delays or disruptions.

Work with reliable logistics partners

Work with experienced logistics providers who have a proven track record of on-time delivery and can handle complex cross-border shipments.

Leverage advanced analytics

Implement advanced analytics and predictive models to identify potential risks and optimize your supply chain operations to improve on-time delivery performance.

Enhance communication

Maintain clear and consistent communication with all parties involved in the supply chain, including suppliers, carriers, and customers.

Contingency plans

Develop backup plans for potential disruptions, such as alternative routes or carriers.

OTD (On-Time Delivery) vs OTIF (On-Time and In-Fact)

OTD focuses only on the timeliness of delivery, while OTIF (On-Time and In-Fact) measures the timeliness and accuracy of the delivered order. The requirement is that the goods should not only be on time, but also intact. Both are key indicators for measuring logistics performance, but OTIF provides a more comprehensive view of service levels.

Timely delivery: Did the goods arrive on or before the promised date.

Order completeness: Was the entire order delivered as specified, without any missing or wrong items.

Striving for a high OTIF rate is essential for businesses that aim for high customer satisfaction.

Common causes of on-time delivery failures

Inaccurate forecasts

Inaccurate demand forecasts lead to inefficient inventory management and transportation planning, which in turn cause delays.

Lack of visibility

Limited visibility into the supply chain makes it difficult to proactively identify and resolve potential delays.

Customs delays

Due to insufficient or non-compliant documentation.

Transportation disruptions

Caused by weather conditions, strikes, or geopolitical tensions.

Supplier delays

Caused by production issues or inventory shortages.

Poor inventory management

Leads to out-of-stocks or delayed order processing.

what is shein on time delivery guarantee?

Shein offers a free "On-Time Delivery Guarantee" service that ensures that customers' orders will be delivered within the agreed time, and if the order is not delivered by the estimated delivery date, the customer is entitled to 500 Shein points.

how to change delivery time on amazon?

Log in to your amazon account backend under the performance menu under the feedback option. To change the delivery time, you need to edit your product listing or shipping settings. Go to the delivery settings under the settings menu and update your shipping time frame, including handling time and estimated shipping time.

How does ChinaDivision ensure on-time delivery?

At ChinaDivision, we ensure on-time delivery by combining strategic practices and advanced technologies:

Optimized transportation network

Leverage an extensive global transportation network and strategic partnerships to optimize routes and modes, minimize delays and ensure efficient delivery.

Efficient customs clearance

Experienced team handles all documents and compliance requirements, thereby facilitating a smooth and timely customs clearance process and minimizing customs delays.

Reliable transportation partner

Trustworthy carriers ensure timely and safe transportation of goods.

Real-time tracking

Advanced tracking system provides real-time visibility of your goods, enabling proactive monitoring and timely intervention, and proactively managing any potential delays.

Optimized inventory management

Use the most advanced inventory management system to ensure that products are always shipped on time.

Comprehensive planning

Develop contingency plans and backup strategies to deal with unexpected disruptions.

Strong Risk Management

Risk management strategies, including contingency plans and alternative route options, help mitigate the impact of supply chain disruptions and ensure on-time delivery.

Dedicated Customer Support

Available 24 hours a day to answer any questions or inquiries, ensuring seamless communication and timely resolution of any issues that may arise.

By working with chinadivision, your cross-border transportation needs will be properly handled. We promise and provide excellent on time delivery services, allowing you to achieve high on time delivery rates and improve overall logistics performance.

If you are facing on-time delivery challenges in cross-border transportation, please contact chinadivision. We will wholeheartedly provide you with professional transportation services to ensure that your goods can be delivered to their destination on time and safely.

About the Author: Limi

About the Author: Limi

Limi is a content marketing expert at ChinaDivision, helping businesses and e-commerce sellers navigate the complexities of international shipping by providing actionable tips and comprehensive guides on logistics, shipping, and cargo transportation.