How does the factory determine the delivery date of the order?

By justchinait
December 17, 2020

In this article, we will describe the factory process from receiving orders to shipment.

1. Order processing time

Including order review time and order entry time.

Order Review Time: After receiving the order, the supplier department leaders will review the quality, delivery, quantity, unit price, payment method, packing method, shipping method, and so on. This is a standard procedure in the factory, but the focus of this process is not to review the order but to inform departments that a new order will be placed.

The supplier will pay attention to the following aspects in order review:

A. Inventory confirmation. If the requested product is insufficient stock, the delivery date can be replied to immediately.

B. Capacity confirmation. What is the production capacity of the product required to confirm the order? Is there a ready-made production line? Is it a new product?

C. Quality and packaging confirmation. Are there special quality and packaging requirements?

D. Material confirmation. Is there any shortage of materials? How about the material delivery time?

Confirmation of delivery date. Integrate all aspects of the production planning and other personnel to confirm the product delivery plan and reply to the delivery date.

Order entry time.

Record the approved order into the supplier’s internal management system for follow-up, factory through fixed procedures, and system operation to establish a rapid response mechanism to try to reduce order processing time.

2. Production planning time.

Production planning time-considerations at each stage

(1) the time required for product design (for new models)

(2) time is taken from receipt of orders to production planning and material analysis

(3) time is taken to procure materials (procurement cycle)

(4) the time required for incoming inspection of materials (including the time required for processing) 

(5) the time required for production

(6) lead time from finished product completion to shipment (booking, customs declaration) 

According to the shipping plan, arrange the production plan through the confirmation of production capacity, material, quality, and process.

Points to note

Production planning requires that operability production schedules be produced as quickly as possible to meet demand and ensure efficiency. To achieve this goal, the relevant personnel in the clear requirements of the premise, to grasp the status of materials, especially to clear the status of bottleneck materials. More to understand the production capacity, familiar with the production process, know the difference between the different production processes, know through what kind of planning to maximize the production efficiency.

3. Raw material procurement time.

The raw material purchase includes two links: strategic purchase and purchase order coordination.

Strategic purchase that is supplier development and management. For major products, suppliers will have long-term cooperation with raw material suppliers.

Purchase order coordination includes arranging the purchase plan of raw materials, confirming the demon order and delivery time with the supplier, following up the delivery status of the supplier, etc. . In the whole procurement process, suppliers are required to do a good job of raw material procurement planning and delivery management. This is also the most vulnerable part because a product may have several suppliers of raw materials. As long as a supplier is not delivered on time, the factory can not arrange the production of products.

4. Incoming material inspection and storage time.

Suppliers usually have a well-defined process to arrange the inspection and storage of raw materials or the incoming materials for outward processing products.

5. Lead time.

After the production plan is made, the supplier needs to make the production preparation as soon as possible, such as material preparation, work instruction, production procedure, equipment and equipment installation and adjustment, production line staff training, etc…

6. Production time.

After everything was ready, the production began to run. The specific production operation time is also related to the condition of materials, production technology, product quality, and the operating conditions of equipment and instruments. In the production process, while making production arrangements and personnel management, production managers need to contact relevant departments to continuously improve the manufacturing process. Improve the operating proficiency of operators and solve all problems in the production process in time.

7. Product Inspection and storage time.

The inspection and storage of the finished products are also very important. The factory usually has a quality inspector to inspect the finished product according to customer and factory requirements. Of course, some customers also have their own cooperative inspection agency to inspect the goods in the factory after the order is completed.

8. Delivery and logistics time.

Including pre-shipment transportation arrangements, customs clearance preparation, delivery orders issued, the warehouse shipment preparation, and after the shipment of logistics and customs tracking, and so on.

The above is the whole process of factory order operation. The factory also determines the delivery date of the order based on this.

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