I am wondering how everyone is tracking their supplier performance? On-time delivery, quality issues, etc. Does Epicor wrap that all up somewhere? Or are you doing it all off line?
For OTIF, we tried calculating on-time performance by doing: Receipt date minus Due date.
In theory it works because if I ordered something for the 20th, and I received it on the 22nd, Supplier was 2 days late.
Problem I have is the Due date is used everywhere else in the system, such as resource scheduling. Our production planners were getting red flags to change their job schedules forward or back depending on the material PO due date, irrespective of when the material was actually being delivered.
My buyers then resorted to changing the Due date based on when the suppliers were promising to deliver but then that meant every single PO was showing as delivering on time, every time.
Promise date was worthless field. MRP would run and suggestions seemed to ignore the Promise date. I don’t even know what purpose this field serves other than showing we’ve had a response from the supplier.
In the end we created a UD field on POHeader to capture the original requested date.
OTIF is calculated on a BAQ comparing receipt date vs this UD field.
There’s a BPM to fill this UD field if its blank. If blank, use the Due date on POHeader.
Most of our customers use three dates.
- The date you want the goods
- The date the supplier says you can have the goods
- The Date you get the goods
Ideally, you should measure between 2 & 3, as this is the best measure of supplier performance.
Epicor requires the due date to be updated based on delivery dates to ensure accurate planning dates are provided, so we dont use this, the promise date can be amended to easily so we dont use that either.
What we suggest is a UD field to store the initial promise date, which is then measured against the date the release is closed. There are always edge cases, where the release is closed by mistake, but we find this ticks most of the boxes for the procurement team.