How LQ achieves both
For many companies it is crucial that they receive the relevant parts in the right place at the right time to maintain production. They therefore expect and require a very high standard of punctuality and delivery performance from their suppliers. The LQ Group provides its customers with both. Coordination between planning, production and logistics makes this possible.
Adherence to deadlines and delivery performance are decisive criteria for keeping production running. If problems occur with one of these two factors or – even worse – both, in a worst case scenario it can stop production at other companies too, because the relevant components are missing. There have been numerous negative examples over the last few years because materials have not been available.
What is the difference between adherence to deadlines and delivery performance? Whereas adherence to deadlines primarily means that customers’ orders are delivered at the destination on time, the term delivery performance covers much more. It also includes optimised internal processes which ensure reliable compliance with the confirmed delivery dates.
Important instrument for securing customer loyalty
Manufacturing companies need reliable suppliers. In this context, reliability does not just mean price and quality: it also includes good adherence to deadlines and delivery performance. The primary concern here is on-schedule delivery rather than fast delivery. Companies are satisfied if a supplier delivers their parts to the right destination and on schedule. This illustrates how adherence to deadlines and delivery performance are also important instruments in securing customer loyalty.
A smooth workflow and low inventory levels
Why is punctual delivery important to companies? There are compelling reasons. The most important factor is to ensure that operations run smoothly. Many companies consider it is very important that they can schedule orders to be delivered without allowing much buffer time. This is particularly true for just-in-time production. Every delay caused by a missing delivery will result in disruption to the production workflow, which in turn can threaten that company's own ability to deliver on schedule.
On top of this, there is a desire to keep their own inventory levels and thus the associated personnel costs as low as possible. High inventory levels tie up a great deal of capital, which is detrimental to liquidity. If stock levels are particularly high, the company also runs the risk that the parts stored may become out of date for technical reasons.
Several pillars
The LQ Group focuses on the complete procurement and manufacturing process so that it can supply the right goods to the customer on schedule. Success here is based on three pillars – planning, production and logistics.
The company's own Avista ERP system, which is connected to the customers’ procurement systems via EDI interfaces (Electronic Data Interface), is extremely significant. At LQ this system handles everything to do with order management, including controlling schedules. The customer planning module has been added to the Avista system so that customer orders can be recorded and managed in a clearly structured way. Ideally, customers send a forecast to LQ each month and this is stored as a planned requirement in the ERP system, thus allowing ongoing planning of materials and staff.
Another module is called LQPP. This is the abbreviation for a digital system that guides workers, steering them step by step through production assembly processes and guiding them reliably through work orders. This system reduces throughput times and ensures high-quality assembly. At the same time, all the steps are documented so that processes can be optimised further, if required.
Reliable, efficient logistics service providers, which LQ has worked with for many years, provide the final touch. The company also operates its own fleet for supplying customers. This is how LQ ensures that its customers are supplied on schedule with the products and modules they have ordered.