Summary
Orders shipped rose 8.4% on the previous quarter while the average dispatch time fell from 31 to 26 hours. Two things held back a better result: the carrier change in August, and stock-outs on three fast-moving lines.
The Q4 plan keeps the new carrier, adds a second packing bench before the holiday peak, and moves reorder points for the three lines that ran out.
Results
| Measure | Q2 | Q3 | Change |
|---|---|---|---|
| Orders shipped | 12,480 | 13,530 | +8.4% |
| Average dispatch time (hours) | 31 | 26 | -16.1% |
| Orders late to customer | 3.9% | 4.6% | +0.7 pts |
| Returns | 2.1% | 1.9% | -0.2 pts |
The late-order rate rose because of the carrier change. It was highest in the first two weeks of August and was back under 4% by the end of September.
What went well
- The second dispatch shift started on 12 July and cleared the Friday backlog.
- Barcode scanning at the packing bench cut mis-picks by about a third.
- Supplier lead times were steady for 41 of 44 active lines.
What did not
- Carrier change. Tracking links were missing for nine days.
- Stock-outs. Three fast lines ran out for an average of 6 days each.
- Returns desk. One person covered holidays alone for two weeks.
Plan for Q4
Priorities
- Add a second packing bench before 1 November.
- Move reorder points for the three stock-out lines; see
reorder.csvfor the new values. - Agree a holiday rota for the returns desk by 15 October.
Reorder rule
reorder_point = (daily_demand * lead_time_days) + safety_stock
safety_stock = 1.65 * demand_std_dev * sqrt(lead_time_days)These figures are planning estimates, not forecasts. We will review them at the end of November.
Risks
| Risk | Likelihood | Mitigation |
|---|---|---|
| Peak demand above plan | Medium | Temporary packers booked for weeks 47 to 50 |
| Carrier capacity | Low | Second carrier kept on contract |
| Supplier delay | Medium | Safety stock raised on the three lines |
Prepared by the operations team. Questions to [email protected].