supply chain

The Supply Superpower: Managing Orders at Origin

How to close the gap between delivery on time requirement and delivery on time reality? Consider using the Supply Superpower: Managing Orders at Origin.

IAA
In Asia Advantage
Author
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REQUIREMENT

Purchase orders placed with overseas suppliers must ship at least 95% on time to avoid serious impacts:

REALITY

Production delays and late shipments are common pain points, with on-time delivery often as low as 70%.

Impacts:

❌ Stock-outs, longer lead times, higher safety stock, lower ROI

❌ Lost sales and lost customers

❌ Disrupted planning and costly rework

How do we close the gap between requirement and reality?

Establishing a dedicated order management team at origin is a proven way to dramatically improve supply performance.

How does it work?

Establish a team of purchase order coordinators in the same country as your suppliers. Same language, time zone, and culture—enabling real-time communication and faster responsiveness.

Key Benefits

✔️ Cost Efficiency – Lower labor costs at origin + higher operational effectiveness

✔️ Cultural & Language Alignment – Smoother communication, quicker problem resolution

✔️ Relationship Dividend – Frequent engagement builds trust and earns production prioritisation

Typical Workflow:

➡️ Home Office | Define requirements, issue purchase order

➡️ Origin Team | Send purchase order to supplier, confirm dates, monitor production, inspect, approve, ship, track, document, and manage payments

Bottom Line:

Order management at origin is a game-changer for supply performance. It bridges the gap between required and actual on-time delivery.