IDEAS home Printed from https://ideas.repec.org/a/eme/jamrpp/jamr-12-2019-0218.html
   My bibliography  Save this article

What is the value of delivering on time?

Author

Listed:
  • Tapio Niemi
  • Ari-Pekka Hameri
  • Petro Kolesnyk
  • Patrik Appelqvist

Abstract

Purpose - Delivery punctuality is essential in supply chain management, yet the cost of untimely delivery is usually assumed to be given or based on intuition and not quantified by facts. Design/methodology/approach - The authors used a data set containing detailed transaction data for a nine-year period on orders and deliveries of sport goods. The methodology is based on applying a polynomial distributed lag model to longitudinal data on supply chain transactions. Findings - The results indicate that small delivery delays up to two weeks decrease the sales by maximum 10% during a period of 3–4 weeks. Longer delays, up to 45 days, have a larger negative effect on sales, which can also last longer. For this case company, the estimated lost sales due to late deliveries (=5 days) were 5.1% of the delivery value. The longer delays got, the large the cost was: delays at least 45 days long were the most costly causing almost 40% of the estimated lost sales. Practical implications - This study offers a methodology for quantifying lost sales due to delivery delays and estimating how long the poor delivery performance affects retailers' order behaviour. Originality/value - The results give a quantitative decision-making tool for supply chain managers to estimate the profitability of investments in the supply chain performance, especially on improving punctuality.

Suggested Citation

  • Tapio Niemi & Ari-Pekka Hameri & Petro Kolesnyk & Patrik Appelqvist, 2020. "What is the value of delivering on time?," Journal of Advances in Management Research, Emerald Group Publishing Limited, vol. 17(4), pages 473-503, June.
  • Handle: RePEc:eme:jamrpp:jamr-12-2019-0218
    DOI: 10.1108/JAMR-12-2019-0218
    as

    Download full text from publisher

    File URL: https://www.emerald.com/insight/content/doi/10.1108/JAMR-12-2019-0218/full/html?utm_source=repec&utm_medium=feed&utm_campaign=repec
    Download Restriction: Access to full text is restricted to subscribers

    File URL: https://www.emerald.com/insight/content/doi/10.1108/JAMR-12-2019-0218/full/pdf?utm_source=repec&utm_medium=feed&utm_campaign=repec
    Download Restriction: Access to full text is restricted to subscribers

    File URL: https://libkey.io/10.1108/JAMR-12-2019-0218?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Chin Pau Soon & Azilah Anis & Mira Qerul Barriah Muhamad, 2024. "Enhancing Export Delivery Performance: Strategic Interventions for Overcoming Late Deliveries in Malaysia’s Food Trading Company," Information Management and Business Review, AMH International, vol. 16(2), pages 82-94.
    2. Tsai, Pei-Hsuan & Chen, Chih-Jou & Hsiao, Wei-Hung & Lin, Chin-Tsai, 2023. "Factors influencing the consumers’ behavioural intention to use online food delivery service: Empirical evidence from Taiwan," Journal of Retailing and Consumer Services, Elsevier, vol. 73(C).
    3. Kulshreshtha, Kushagra & Sharma, Gunjan, 2022. "From restaurant to cloud kitchen: Survival of the fittest during COVID-19 An empirical examination," Technological Forecasting and Social Change, Elsevier, vol. 179(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eme:jamrpp:jamr-12-2019-0218. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Emerald Support (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.