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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$90,000

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.

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