Various Order Winning Criteria

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Various Order Winning Criteria

The various order winning criteria include:

  1. Price
  2. Product quality & reliability
  3. Delivery speed
  4. Delivery reliability and
  5. Product & color range.

Price:

In the growth & maturity phases of product life cycle, price becomes an increasingly important order winning criterion in many marketplaces.

When this is so, manufacturing task is to provide the low cost necessary to support the price sensitivity of the market-place, thus creating the level of profit margin necessary to help the business investment involved and introduce opportunity for the future.

Product Quality & Reliability:

Product quality & reliability is one of the order-winning criterions which depend upon product design & primarily provided through the manufacturing processes of the business.

However, the product design is not based upon manufacturing performance but upon engineering design capability and corporate support and funding for this activity.

If we will maintain the necessary levels of product quality and reliability through better manufacturing ability and ability of product designing, then we will win the orders.

Delivery Speed:

Delivery speed is one of the most important order winning criterion. Some companies may be won order due to their ability to deliver more quickly than their competitors or when it is able to meet the delivery date required.

The products which compete in this way, therefore, need a manufacturing process which can respond to this requirement. There are two perspectives to issue of delivery speed. One is where the process lead time is shorter than delivery time required by the customer.

Second is where the process lead time is greater than the customer delivery requirement. And if process lead time and existing order backlog do not exceed the customer’s delivery requirement, then the criterion of the delivery speed is not an issue.

Delivery Reliability: The aspect of delivery reliability concerns the manufacturing task of supplying the products on or before the delivery due date for manufacturing this would involve consideration of capacity, scheduling and inventory holding principle in terms of work-in- progress and finished goods.

Product & Color Range:

In some instances, products win orders due to the product & color range offered to the consumer.

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