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Expediting: Definition & important aspects for purchasing specialists
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Expediting in a nutshell:
Expediting refers to the systematic monitoring and active acceleration of orders to ensure on-time deliveries. For purchasing, this is an important supplier management tool for avoiding delivery delays and ensuring security of supply.
Example: An automotive supplier uses an expediter who checks the status of critical components with the supplier from 5 days before the delivery date, ensuring on-time delivery for 85% of monitored orders in 2023 and avoiding production downtime.
Contents
What is expediting?
In purchasing, expediting refers to the monitoring and acceleration of orders in order to ensure on-time delivery. It includes all measures required to avoid delays in the delivery process and to ensure that projects or production processes run according to plan. Active intervention and close communication with supplier management ensure that delivery deadlines are met and that the supply of required materials or services runs smoothly.
Core elements of expediting
Importance of expediting in purchasing
Expediting is of central importance in the procurement process in order to keep the supply chain stable and efficient. By proactively managing supplier relationships and intervening early in the event of problems, delays can be minimized and costs saved. Expediting helps to avoid production downtime, meet customer requirements on time and increase the company's competitiveness.
Expediting: From reactive supplier management to proactive expediting
Based on the central importance of expediting in procurement, the practice has changed from a predominantly reactive approach to a strategically proactive discipline. At a time when supply chains are becoming increasingly complex and global, it is essential for companies to ensure on-time delivery and quality. Traditional methods are reaching their limits, highlighting the need for advanced expediting strategies. The transformation to modern expediting is crucial to avoid bottlenecks and ensure competitiveness.
Old: Traditional supplier management
Traditional approach: In traditional supplier management, delivery processes were often monitored passively. Companies relied on agreed delivery dates and only reacted when delays occurred. Communication with suppliers was usually limited to sporadic status queries and there was a lack of transparency regarding actual production progress. Tools such as telephone calls, e-mails and manual spreadsheets dominated the exchange of information. This approach often led to unexpected delivery bottlenecks, increased costs due to urgent transportation and impaired production processes. The lack of proactive control made it difficult to react to problems at an early stage and implement sustainable solutions.
New: Proactive expediting
Expediting: The modern approach to expediting relies on proactive monitoring and control of the supply chain through the use of digital technologies and data-driven methods. Today, companies use specialized expediting software that enables real-time tracking of orders and generates automated alerts in the event of deviations. Through closer collaboration and transparent communication with suppliers, potential delays can be identified at an early stage and solutions developed together. Key innovations such as predictive analytics and artificial intelligence make it possible to forecast delivery times and bottlenecks, which leads to a significant improvement in planning reliability. The practical benefits of this approach are reduced lead times, lower stock levels and a secure supply for production. Companies report an increase in delivery reliability of up to 15% and a reduction in logistics costs of 10% through the use of modern expediting.
Practical example: Mechanical engineering industry
A medium-sized mechanical engineering company was faced with the challenge of improving the delivery reliability of its international suppliers in order to avoid project delays. By implementing a proactive expediting system with real-time data integration, the company was able to significantly increase transparency along the supply chain. Suppliers were integrated into a common supplier portal which displayed the current status of orders, production progress and shipping details. Within a year, delivery punctuality increased from 82% to 96%. In addition, average procurement lead times were reduced by 20%. As a result, the company achieved cost savings of 1.5 million euros per year and was able to complete its projects on time, which significantly increased customer satisfaction and competitiveness.
Conclusion on supplier evaluation through expediting
Expediting is an indispensable tool in modern purchasing that ensures on-time delivery through proactive monitoring and systematic communication with suppliers. Despite the high expenditure of resources, its use is justified by avoided delays and reduced risks in the supply chain. With increasing digitalization and AI-supported solutions, expediting will continue to develop and contribute even more effectively to the stability of procurement processes.
