Workers-Packing-Boxes-In-Factories

Top Five Reasons Small Manufacturers Don't Deliver on Time

May 28, 2014
The top reason of late delivery is not receiving raw materials on time.

Half of the respondents to a recent survey said they failed to deliver some percentage of customer orders on time last year. The survey, conducted by business software provider Exact, found that top five reasons for not meeting delivery expectations were:

  • Receipt of raw materials past due (39%)
  • Inaccurate estimation of time to complete order (25%)
  • Dependency on subcontractors, e.g. let down by supplier (23%)
  • Unexpected or seasonal influx of incoming orders (21%)
  • Insufficient capacity (19%)

“We recently surveyed a similar group of small businesses, which also includes wholesale distributors, and in that research it was clear that there’s a reluctance to address these challenges with technology,” said Steve Leavitt, GM of U.S. Cloud Solutions for Exact.

In this survey, seven out of 10 small manufacturers and wholesalers think that enterprise resource planning (ERP) software (or ERP-like business software) is too costly and they don’t see how it would benefit their businesses.

About the Author

Adrienne Selko | Senior Editor - MH&L, IW, & EHS Today

Adrienne Selko has written about many topics over the 17 years she has been with Endeavor Business Media and currently focuses on workforce development strategies. Previously Adrienne was in corporate communications at a medical manufacturing company as well as a large regional bank.

She is the author of Do I Have to Wear Garlic Around My Neck? which made the Cleveland Plain Dealer's best sellers list. She is a senior editor at Material Handling & Logistics, EHS Today, and IndustryWeek. 

Editorial Mission Statement:

Manufacturing is the enviable position of creating products, processes, and policies that solve the world’s problems. When the industry stepped up to manufacture what was necessary to combat the pandemic, it revealed its true nature. My goal is to showcase the sector’s ability to address a broad range of workforce issues including technology, training, diversity & inclusion, with a goal of enticing future generations to join this amazing sector.

Why I Find Manufacturing Interesting: 

On my first day working for a company that made medical equipment such as MRIs, I toured the plant floor. On every wall was a photo of a person, mostly children. I asked my supervisor why this was the case and he said that the work we do at this company has saved these people’s lives. “We never forget how important our work is and everyone’s contribution to that.” From that moment on I was hooked on manufacturing.

I have talked with many people in this field who have transformed their own career development to assist others. For example, companies are hiring those with disabilities, those previously incarcerated, and other talent pools that have been underutilized. I have talked with leaders who have brought out the best in their workforce, as well as employees doing their best work while doing good for the world.