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VRO Discrepancies

You cannot ignore a discrepancy.

Discrepancies are time consumming for the Supplier and the Customer because they have to be solved anyway to avoid component shortage.

Always try to understand if discrepancies are due to:

  • a weak demand management: the forecasts sent to the Supplier are very different from the Pick-Up Order;
  • a timing issue between ordering, promise and shipment;
  • a manufacturing or capacity issue of the Supplier.

This is only by working with the Supplier that you are going to solve them. Communication is key!

You need to track the number of discrepancies per supplier, group their root causes using the Discrepancies Board classification and review them on a monthly basis with your Supplier. This is the best way to reduce them.

Supplier KPI Delivery performance but also adherence at the process are 2 aspects to be tracked in order to assess Supplier's performance.

Promise Compliance Rate (PCR) A very specific KPI, fundation of the VRO process.

Improving the Supplier PCR How to improve the reliability of the Supplier Promise.

Service Rate Classical KPI adapted to the VRO.

VRO Incidents To keep your VRO efficient, it is important to record the non respect of its key steps.

VRO Supplier KPI report A simple file to record and present VRO Supplier KPI.

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  SupplyFlow - USA - France