Drivers of On-Time Delivery for Build-to-Stock Items: An Empirical Analysis of Time Series Data on Fill Rate Performance

Abstract

Many firms today compete on their ability to deliver customer orders quickly and reliably. While researchers have proposed numerous factors believed to affect delivery performance, little empirical research has examined such factors using longitudinal data from real world manufacturing operations. This paper examines a list of structural, demand, and supply factors believed to impact delivery using monthly data on product assembly from a major manufacturer. We estimate econometric models that capture the impacts of these factors upon product line item fill rates. The findings provide support for several hypothesized drivers of delivery performance. Managers may benefit from the empirical approach and research findings, which identify salient variables that managers can monitor and adjust to ensure desired delivery outcomes.

Keywords: delivery performance, manufacturing operations, built-to-stock, operations strategy, supply chain uncertainties, regression, time-series data

JEL Classification: D2, D20, M11, M, L6