Extract of an article by Leon Gettler in Business Spectator titled: Sharpening the productivity tools
Lombard Paper, the outfit that supplies paper cups, catering products and AFL supporter gear around the country, adopted DIFOT (delivered in-full, on-time) as a management tool measuring customer service. It looked at every order that went out and assessed how many reached the customer and how many got there on time. A customer might have ordered seven items and only two got there because the rest was out of stock.
Lombard time-stamped when the order was made and when it was delivered. No tick if something was delivered in full, but not on time. Invoices and inventory were reviewed. Purchasing, retail, customer service, credit and warehouse managers met weekly to discuss orders that failed and processes were put in place to make sure it didn’t happen again. Lombard national retail manager Andrew Kevill says the company looked at the best DIFOT levels in the world. list of websites It was 97 per cent and that became Lombard’s target. It is now at 90 per cent and getting there, a long way from where it started at 75 per cent when customers were not getting what they ordered in the scheduled time.
“The most important thing is to know what you’re doing and what your target is and then energise all the people that contribute to it to work towards it,’’ Kevill says. “It’s a new learning process about what drives the failures but as we learned more about how we were failing, it wasn’t that difficult to work towards improving it,” he says.