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Supplier Relationship Management

Expediting


Fundamental
EN
0-15 mins
Article

Expediting is about understanding your suppliers’ operations so you are aware of their production processes and you can follow them through the sequence. By understanding them you are able to influence and manage the on-time delivery of products to your organisation.

The Supplier Expeditor is responsible for the smooth flow of materials to and from various suppliers and organisation sites. They work with suppliers to co-ordinate the timely delivery of all material requirements. They may also find ways to help save money on the sourcing and procurement of goods and services.

The role of expediting varies according to the type of organisation and the different products or services you buy. It ranges from one person in a small company who places the order, to a specialist team in a multi-national company that monitors delivery schedules of materials.

As customers become more demanding and have higher expectations from their suppliers, expediting can help to improve delivery times. Without the achievement of on-time delivery the customer is unable to plan and execute their own production plans.

If a delivery has to be expedited it can be the sign of a problem with a particular process within a business. Therefore, expediting is usually a way to help fix any problems that have occurred. Common causes for needing to expedite include the following:


Expediting


Whoever is responsible for expediting, it is important to establish clear lines of communication with the supplier. Having two people chase the same supplier for the same item can result in expensive duplication of effort and confusion.

Common methods of expediting include:

  • Re-prioritising the supplier’s manufacturing plan: this is easier if your organisation is working with a supplier who delivers a number of products. You can work with them to give priority to specific items. If the supplier has other customers, you must remain in contact and request regular updates.
  • Incentivising suppliers: typically, expediting orders will incur additional costs, assuming the buyer and supplier are already working to the agreed schedule. Agreeing evening and weekend rates, for example, can encourage a supplier to reduce lead times and deliver on schedule but this also has to be considered in terms of additional costs that may need to be negotiated.
  • Helping the supplier to streamline their supply chain: a supplier may be waiting on materials or tools from their own suppliers. One way in which you can help is by placing larger bulk or pre-orders.  This gives your supplier greater bargaining power with their suppliers, who may be encouraged to give priority to their orders over others.
  • Alternative suppliers: it may be that the existing supplier is unable to fulfil the requirements of an expedited order. It is then reasonable to look for alternative suppliers who can provide similar products and with more capacity. This also provides more options for future orders and can help to reduce costs and lead times if an existing supplier knows that they are in competition with alternative suppliers.

If your organisation needs to frequently use expeditors to solve problems, it is sensible to investigate the root causes as this can help save costs associated with expediting, ranging from administration, quality concerns to a quicker delivery service.