promise

Performance to Promise Dates: When a Distributor places a Purchase Order against a Manufacturer, he has certain expectations on when he will receive the items ordered. His original expectation is the OnTime Delivery Metric. However, the manufacturer may give him a revised estimate as to when they expect to fill the order. The manufacturers promise is called the "Performance to Promise Date Metric".

Example: ABC Company Orders 2 Products on Purchase Order #1234, with a Requested Ship Date of June 10.
The first item is in-stock and ships on June 10th..
The second item is on backorder. The manufacturer estimates that the 2nd item will ship by July 1.
The item is manufactured and ships out on June 28.
The Performance to Promise Date is 100% (items ship ontime or early)
*However, if the 2nd item does not ship till July 2nd, then it's late. The Performance to Promise Date is 50%.

Our goal is to guide companies that are looking to optimize their Supply Chain. Originally, we intended on answering questions about Inventory Control, Sourcing, Manufacturing, Distribution and Supply Chain Metrics. However, we currently do not have the resources to answer individual questions.
If you want to contact me, email me at: john@supplychainmetric.com

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For information on Inventory Turns, Fill Rate Measurement, Backorder Reporting or any other Supply Chain Metric, click on the links to the left. The text that appears on this website is the opinion of the webmaster. Metrics may or may not be uniform across all industries. All data listed here may be used as a general guide, but it's accuracy is not guaranteed. Please consult a qualified Supply Chain professional for more details on Supply Chain Measurements. Other Supply Chain Websites
This site is owned and maintained by Michelle Taras & John Taras CPIM, PMP

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VendorManagedInventory.com - information on Vendor Managed Inventory
InventoryTurns.com - additional information on how to calculate inventory turns or inventory turnover.
SupplyChainManagementNews.com - News stories about Supply Chain Management
SupplyChainDefinitions.com - various definitions of supply chain terms
SupplyChian.com - various supply chain info (yes, i know it's mis-spelled)
SupplyChainPurchasing - a new site Michelle is developing. All about Supply Chain Purchasing.
BusinessPlanningandConsulting.com - a website that discusses Business Plans and Consulting (business planning)

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