OEM logistics are complicated enough without having to worry about your supplier’s shipping efficiency. Simply put, your orders should arrive on time. While you may negotiate freight on your own, your contract manufacturer is responsible for handling the details.

Delivery reliability is one of the five key attributes of successful OEM supply chain management and is measured by your manufacturer’s ability to serve your demands precisely within a set timeframe.

The right OEM supplier takes the initiative to manage shipping logistics on its own because it sees itself as your partner. It is not only interested in supplying OEM parts, but in facilitating your growth.

Supplier reliability makes or breaks your internal production schedule. After all, you need parts that meet quality standards and are delivered on time to continue production. Your metal manufacturer should use the following two shipping strategies to support your company’s streamlined manufacturing.

1) Manage Your Shipping Logistics Responsively

A reliable supplier has to ensure the right trucks deliver OEM parts to the right place. Haphazard management has no place in shipping logistics. Instead, your supplier must take a procedural approach.

For example, your metal manufacturer should schedule trucks 48 hours in advance. It should put duress on the trucking company if schedules are tight and you need your parts delivered by a certain time
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If your order is completed but the trucking company is experiencing some issues, your supplier must find a way to deliver your parts. Communication and working relationships with trucking companies are vital.

Shipping logistics are intensely complicated, especially when trucks have to drop off products at multiple locations per day. Your supplier must be responsive and organized to manage shipping effectively. Often, a good supplier has logistics personnel working around the clock to oversee truck loading and to work closely with the trucking company as deliveries go out.

You also must be kept in the loop. If you’re expecting an order to arrive at 6 a.m. but the trucking company can’t deliver until noon, your supplier should communicate with you so you’re prepared for the later delivery.

2) Implement Advanced Shipping Container Design

A manufacturer that uses shipping containers efficiently helps you save on shipping costs and demonstrates supplier reliability. Your supplier should continuously reevaluate shipping container design using the following criteria:

• Products fit well within the container
• The container remains stationary
• The container moves efficiently through your facility

Shipping containers should be designed to flow down your product line. That means the first parts you need during production are on top, and your supplier packs them last. The next products in the container should be correct for every station.

Advanced shipping container design also protects your parts from damage. As a result, you don’t have to send parts back to your supplier and delay production at your plant.

Except under unique circumstances, you shouldn’t have to get involved in shipping matters. Supplier reliability reduces your overhead management so you can focus on other important areas of your business. Whether you strategize about breaking into new markets, growing relationships with your existing customers or improving the value you offer, you move closer to meeting your profit potential.

Ready to learn more about how Miller could help you grow your business? Schedule a consultation today.