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What is late supplier delivery costing in expedites and disruption?
Calculate avoidable late-order cost from an on-time-delivery improvement.
Example scenario
Editable demonstration inputs, not verified industry benchmarks. Enable JavaScript to calculate your own scenario.
- Supplier deliveries / year
- 1,000
- Current on-time delivery
- 85 %
- Target on-time delivery
- 95 %
- Average expedite cost / late delivery
- $400
- Late deliveries causing production stops
- 20 %
- Average contribution & recovery loss / stop
- $5,000
- Annual supplier-development cost
- $50,000
Annual supplier reliability net benefit
Example result only, not a forecast or promise.
- Late deliveries avoided
- 100
- Expedite costs avoided
- $40,000
- Expected production stops avoided
- 20
What to do with this result
Agree a consistent requested-date measure with the supplier and verify expedites and production stops are not double-counted.
Know what is inside the model.
Planning model, not personalized financial advice. Your inputs remain in your browser.
Calculation method
Avoided late deliveries = deliveries × change in on-time share. Net benefit = avoided lates × (expedite cost + stop probability × stop loss) − program cost.
Assumptions and limitations
- Example inputs are editable scenarios, not Aryo results or independently verified industry benchmarks.
- Demand, lead times and service levels are scenario inputs. Validate variability, physical constraints and supplier terms before ordering.