Are the hidden costs of goods inwards delays costing your business dearly?
For users operating in any hi-reliability sector, paperwork issues are the number 1 cause of delay at goods inwards. At Princeps well over 80% of the delays we see in goods inwards are caused by partial or missing traceability paperwork. With each delay taking on average 24 hours to resolve, how much are these delays costing you?
Cost of Poor Quality
We have done some Cost of Poor Quality calculations to get an idea of the cost to our business.
We reckon that an average goods inwards paperwork issue takes
- 2 hours extra work in our administration department
- 1 hour extra work in our goods received department
- 30 mins extra work in our quality department
- 10 emails
- 5 phone calls
We also considered the additional control points that we have had to introduce in order to manage these full traceability orders from manufacturers and their authorised distributors
- Our documentation expectations are explained and illustrated to our suppliers on FIVE separate occasions between RFQ and Order
- Our goods inwards inspectors review all documentation received against our stated requirements
When we tot up all of this extra work and factoring in the time that is taken out of other tasks we have come up with a figure of around £75 for each and every poorly documented delivery we receive. This is not to mention the potential reputational hit received if delays cause missed delivery slots with customers. The potential harm to our business is such that we work in extra lead time in anticipation of documentation delays.
Why is goods inwards documentation so important?
The traceability paperwork received with your goods is key to proving the provenance of your parts. Traceability of parts back to the original component manufacturer is essential, ensuring only new, original devices are received and used on your products. With the industry experiencing severe supply side issues at the moment, it is more important than ever to be sure of this provenance – and if the paperwork we all rely on to prove this is missing, how sure can we be?
How can I prevent goods inwards delays caused by documentation issues?
There are three easy steps you can take to prevent these issues impacting your business
1 Use an AS9120 Certified Distributor who understands what full traceability is
2 Demand full traceability with each delivery
3 Work with your distributor and agree what actual paperwork you expect to see with your delivery – you’d be very surprised (or maybe not!) at the wide variety of what is considered full traceability documentation
Princeps are AS9120/AS6081 certified and we provide fully traceable parts to our many customers in sectors such as aerospace, medical and instrumentation. Using our Princeps PRIME+ service to meet their full traceability requirements. Each Princeps PRIME+ order is supplied with all the traceability documentation in the box ready to be passed by your goods receiving team. We take the pain out of full traceability.
If you would like to find out more about how Princeps PRIME+ can solve your goods inwards documentation issues please get in touch.