There are over 16,000 injection molders in the United States alone so it is understandable that choosing a plastic injection molding partner may seem like a daunting task! There are many factors to consider when selecting a molding partner; however, there is one key criterion that stands out: delivery performance. This metric is also referred to as On Time Delivery, or OTD.

A high OTD is important as it assures OEMs that they will receive their order, within specs, when it is scheduled to arrive. Additionally, injection molding partners with a high OTD are less likely to have problems that lead to production downtimes and schedule delays.

But on time delivery is more than just a number – it is a reflection of a supplier’s materials handling and production capabilities. A poor OTD often means a supplier has inefficient processes within the supply chain that led to delays – and could lead to headaches, frustration and, ultimately, loss of customers for the OEM! 

What is On Time Delivery?

On time delivery is a key metric to track operational performance and supply chain efficiency within a company. Different organizations calculate OTD differently but, generally speaking, it is the amount of shipments delivered on time to the customer relative to the total number of shipments ordered. For example, if a supplier delivers 9 out of 10 shipments on time and in full, the suppliers OTD would be 90%. This metric allows a supplier to assess how efficiently and effectively they are meeting the agreed upon delivery schedule for each customer.

Why is On Time Delivery Important?

A perfectly manufactured product has little value if it does not arrive when you need it. OTD is a simple but often overlooked metric that is an important indicator!   

Meeting an OEM’s delivery requirements must be a priority for every injection molding supplier. From both the supplier and OEM perspectives, late deliveries can result in various negative outcomes such as slower time to market, customer complaints, tainted reputation, strained supplier-OEM relationship – and worst of all, customer loss!  

For these reasons, it is easy to see why OEM’s look for plastic injection molding partners with an excellent and consistent OTD record. Good suppliers with a high OTD are predictable – offering OEMs a stable supply chain they can trust. Additionally, these suppliers add value by becoming a trusted partner that works jointly with the OEM to develop solutions. OEMs can have confidence in suppliers with excellent OTD records.

How Can OTD Be Improved?

Good suppliers are constantly looking for opportunities to improve OTD and, fortunately, there are several options to consider. A low OTD can be caused by several issues including a supply chain bottleneck, a time-consuming process, a quality issue, lack of real-time data for decision making, or a delivery method that is too slow. Suppliers who wish to improve OTD should first identify which one(s) of these issues is causing the poor OTD.

In most cases, the implementation of more current or advanced technologies is a good place to start to improve OTD. For example, automation of materials handling using technologies such as robots and cobots, sorters, conveyors, and RFID scanners. Additionally, some suppliers integrate technology such as electronic data interchange and enterprise resource planning for tracking and monitoring of shipments. All of these tools elevate production efficiency by removing time-consuming steps and process bottlenecks and they also improve data visibility, resulting in a higher OTD – a win for both the OEM and supplier!

Crescent Industries

Crescent Industries is an employee-owned custom injection molder providing an integrated single source solution for your custom plastic injection molded components utilizing our advanced engineering capabilities. Our capabilities allow us to mold a comprehensive range of engineered and commodity grade resins. Crescent currently serves the medical, pharmaceutical, dental, defense, safety, electrical/electronic, aerospace and OEM/Industrial markets.

More than just a supplier, we provide the most comprehensive kitting, assembly, and packaging solutions to our customers. Our extensive value-add capabilities provide competitive solutions for customers’ supply-chain needs by implementing QRM (Quick Response Manufacturing) cells, collaborative robots, and other automation – resulting in improved capacity planning and optimized batch sizes to achieve short lead times! Additionally, we have our own delivery trucks so we charge no fee for regular scheduled deliveries within a 100-mile radius. By investing heavily into our post-molding capabilities, we have the ability to be a single source partner for our customers and offer competitive pricing by taking some of the workload off their plate. 

Crescent Industries has an extremely knowledgeable team to assist with all of your design and production questions. Click below to read our white paper “Tips in Selecting a Vendor”.

Tips to Assist You in Selecting an Injectin Molding Partner

Topics: packaging, Crescent Injection Molding