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Delivery process

By Nadira Noor Utami


The definition of delivery process is, "preparing the physical delivery of goods from the warehouse
to the destination in accordance with the documents of ordering and in conditions accordance with
the requirements of goods suppliers"

Before the delivery of activities performed, activities carried out after the goods are prepared is
packaging and sorting. Packaging is done individually or combined for the convenience or security
of the goods, while sorting is to collect picking or packaging to the correct route and must compare
the capacity of the carrier vehicle with the route where it passes.

Some important things to do in the process of packaging and sorting are:

1. The existence of an address or label for each destination.
2. Reduce the time spent in packaging.
3. Grouping between cardboard, boss, or pcs.
4. Give out special label for packaging box.
5. Calculate the number of koli.
6. Group the packaging to the correct departure path.

The basic principles in pack and sorting are:

1. Checking documents vs. goods
2. Activities of goods vs goods

Obstacles in packaging and sorting are:

1. Spending slowly.
2. Location are not regular.
3. Damage of goods.
4. The order of delivery plan is not correct.
5. Vehicle carrier that is not in accordance with the plan.
6. Partial picking
7. Documents are incomplete

So that in pack and sortation measured key performance indicator which is useful for management.
The average box is measured from the existing pcs and how many boxes after packing. Example:
destination east 100 boxes, destination north 40 boxes.

Effectiveness of delivery of goods (delivery process)

According to Donal J Bowersox and Davids J.Close in his book Logistical Management, it was
observed that transportation activities cost 44% of the total logistic costs. Even in Indonesia
transportation costs can reach more than 60%. Donald J Bowersox and Davids J close also divides
the 6% administrative cost component, 4% customer service, 20% inventory, and 26% warehouse.
It is clear that transportation activity is a necessary activity and should be handled very seriously.
In the real case, transportation cost savings in delivery process can be done directly by applying:
1. Minimize warehouse waiting time and unloading time.
2. Maximize delivery capacity per vehicle type.
3. Set the route to go
4. If possible delivery is done in pallet unit, not on fractional.
5. Avoid stealth charges

KPI (key performance indicator)

KPI in the delivery process is used to measure the speed, accuracy, volume, and other conditions
determined by management.
To get a good preparation of KPI, it is necessary to know the basics of work activity in this section:
1. Checking documents vs. goods
2. Checking goods vs. location

By knowing the basic activities, it will be known barriers that occur in the process of delivery of
goods related to the basis of the activity.
1. Spending slowly
2. Damage to the goods
3. The order of delivery plans is in correct
4. Inadequate transport fleet
5. Truck is not standard
6. Item
7. CN goods handling

In the delivery process there is also called QCDS. QCDS is stand for Quality, Cost, Delivery and
Service, almost every company, especially Manufacturing companies apply this QCDS concept in
order to compete and outperform its rival companies.

The following is a brief description of QCDS:

Quality (Best Quality)

Quality or in Indonesian is Quality or also called Quality is very important in production. Quality
or Quality is the assessment of products that are free from production Errors and in accordance
with the specifications required by the Customer (customer). In electronics production assembly
companies often display Quality / Quality slogans as one way to promote themselves such as
"Quality First", "Zero Defect" and so on. Quality of production is very important in providing
customer trust (customer) to our production.

Cost (Competitive Cost)

Cost is the cost or cost of production that can compete with rival companies or products. The
company is always trying to reduce the cost of production in order to meet the demand for the
price of the Customer (Customer).

Delivery (On-Time Delivery)

Delivery is meant here is the timeliness in the delivery of our products. In Today, speed in delivery
can determine the success of a product. Patience waiting for customers is very limited, because the
product we produce is not necessarily the only one in the world. If within a certain time we can
not provide products that we want to market, Customers can just replace with other products.

Example: Usually when the new year will be a lot of demand for cars, If the customer order it 2
days before New Year must get the car but we can not afford it. Then the customer will consider
another brand as his successor. Then we will lose Business of the Customer.

Service (Quick Service and Response)

Our service to customer requests with fast response. Everyone hopes to be served quickly so that
their needs can be met immediately and complaints can be dealt with immediately.

Example: If a customer purchases our product there is a production defect and complains
(Complain) to us. Immediately we conduct an investigation and provide a positive response such
as our desire to replace the new unit or make free repairs and provide souvenirs of apology. Then
most likely the customer will still use our product or promote to others.