Purpose of the lesson

Compare actual customer orders with planned deliveries, identify stock, warehouse and transport constraints, and coordinate a revised delivery schedule according to approved customer priorities.

Practical outcome

By the end of this lesson, you must be able to:

• Identify variances between actual orders and planned deliveries.
• Create and maintain a delivery-variance register.
• Identify transport and warehouse capacity constraints.
• Realign delivery schedules according to customer priorities.
• Reallocate transport capacity.
• Place supplier back orders for stock shortages.
• Resolve demand-and-supply imbalances.
• Distinguish and manage hard and soft constraints.
• Align production schedules with revised operational requirements.

1. Gather the required information

Obtain:

• Actual customer orders on hand
• Original customer-order schedule
• Planned delivery schedule
• Customer-priority list
• Current stock report
• Back-order report
• Warehouse picking and loading capacity
• Vehicle and driver availability
• Vehicle capacities
• Route plan
• Supplier-order and replenishment information
• Production schedule
• Customer delivery windows
• Current operational exceptions

Confirm that all information relates to the same planning period.

2. Compare actual orders with planned deliveries

For every actual order, compare:

• Customer
• SKU
• Quantity
• Delivery location
• Planned delivery date
• Requested delivery date
• Priority
• Stock allocation
• Route allocation

Use:

Quantity variance = Actual order quantity − Planned quantity

Delivery-date variance = Revised or actual date − Planned date

A delivery occurring after the planned date represents a delay.

Delivery-comparison schedule

3. Create a variance register

Record all differences requiring action.

Include variances relating to:

• Quantity
• SKU
• Customer
• Delivery date
• Delivery location
• Stock availability
• Vehicle allocation
• Route sequence
• Warehouse readiness
• Supplier replenishment

Confirm each variance before changing the schedule.

4. Identify transport-capacity constraints

Compare revised delivery requirements with:

• Vehicle weight limits
• Volume and pallet capacity
• Driver availability
• Vehicle operating condition
• Route duration
• Delivery windows
• Vehicle-access restrictions
• Product-handling requirements
• Transport-provider capacity

Calculate:

Vehicle utilisation = Planned load ÷ Available vehicle capacity × 100

A route exceeding 100% capacity is not feasible.

Transport-capacity register

5. Identify warehouse-capacity constraints

Check whether the warehouse can support the revised delivery plan.

Consider:

• Stock availability
• Picking labour
• Picking rate
• Equipment availability
• Staging space
• Loading bays
• Packing capacity
• Order cut-off times
• Dispatch deadlines
• Competing inbound activities

Calculate:

Required picking hours = Units to pick ÷ Picking rate

Compare the required hours with the available labour hours before the planned dispatch.

6. Classify hard and soft constraints

Hard constraints

Hard constraints cannot be exceeded without making the plan unsafe, unlawful or impossible.

Examples include:

• Legal vehicle-load limits
• Unavailable stock
• Closed customer receiving facility
• Product incompatibility
• Required safety controls
• Equipment incapable of handling the load
• Mandatory delivery restrictions

Soft constraints

Soft constraints may be adjusted with approval.

Examples include:

• Preferred delivery time
• Normal route sequence
• Planned employee allocation
• Preferred vehicle
• Standard order frequency
• Internal scheduling preferences

Resolve hard constraints first. Adjust soft constraints only through authorised decisions.

7. Realign deliveries according to customer priorities

Where all orders cannot be delivered as planned:

1. Confirm the available stock and operational capacity.
2. Apply the approved customer-priority rules.
3. Identify orders that can be delivered in full.
4. Identify orders requiring split or delayed delivery.
5. Allocate available vehicles and warehouse resources.
6. Confirm feasible delivery dates.
7. Obtain approval.
8. Communicate changes to customers and affected teams.

Realigned delivery schedule

8. Reallocate transport capacity

Use the revised delivery plan to adjust:

• Vehicle assignments
• Route sequence
• Driver assignments
• Departure times
• Customer groupings
• Load composition
• Third-party transport requirements

Possible actions include:

• Move an order to a vehicle with available capacity.
• Split the order across two routes.
• Combine compatible deliveries.
• Change the delivery sequence.
• Appoint an approved transport provider.
• Reschedule a lower-priority delivery.
• Arrange an additional trip where operationally feasible.

Recalculate utilisation after every material change.

9. Manage stock shortages and supplier back orders

For every shortage:

1. Confirm the affected SKU and quantity.
2. Identify the affected customer orders.
3. Review existing supplier orders.
4. Determine the earliest available replenishment date.
5. Create or update the supplier back order.
6. Link it to the affected customer requirement.
7. Revise the warehouse and delivery schedules.
8. Monitor the supplier commitment.

Supplier back-order record

10. Resolve demand-and-supply imbalances

A demand-and-supply imbalance occurs when available and expected supply cannot meet customer demand at the required time.

Possible responses include:

• Expedite an existing purchase order.
• Place a supplier back order.
• Use an approved alternative supplier.
• Transfer stock between facilities.
• Allocate an approved substitute product.
• Increase authorised production.
• Split customer deliveries.
• Change a delivery date.
• Reallocate stock by customer priority.

Evaluate the effect of each option on:

• Cost
• Customer service
• Inventory
• Production
• Warehouse operations
• Transport
• Supplier commitments

11. Align the production schedule

Where customer-order or delivery changes affect production:

• Confirm the revised SKU quantities.
• Review production capacity.
• Change production priorities where authorised.
• Check material availability.
• Coordinate line and employee requirements.
• Revise completion dates.
• Update warehouse picking and transport schedules.
• Record unresolved conflicts.

Do not revise production requirements without communicating the consequences to production, procurement and warehouse teams.

12. Coordinate the revised schedules

Ensure that the following schedules agree:

Supplier and replenishment schedule
                ↓
Production schedule
                ↓
Warehouse picking and loading schedule
                ↓
Transport and route schedule
                ↓
Customer delivery commitment

Check that:

• Stock will be available before picking.
• Production will finish before dispatch.
• Warehouse capacity supports loading.
• Vehicles can carry the planned loads.
• Routes meet customer delivery windows.
• Back orders are reflected across all affected schedules.

13. Communicate schedule changes

Issue an approved schedule-change notice showing:

• Order and customer affected
• Original commitment
• Revised commitment
• Reason for the change
• Operational impact
• Required action
• Responsible person
• Approval
• Communication date

Notify:

• Customer service
• Customer or end user
• Warehouse
• Transport
• Production
• Procurement
• Supplier, where relevant
• Finance, where cost or billing changes

14. Monitor execution

Track:

• Picking completion
• Loading and dispatch
• Vehicle movement
• Delivery status
• Proof of delivery
• Supplier back orders
• Stock receipts
• Production output
• Outstanding customer quantities
• New variances

Escalate deviations that threaten approved customer priorities or delivery commitments.

Practical task

You are provided with actual customer orders, planned delivery schedules, customer priorities, stock shortages and warehouse and transport constraints.

Complete the following:

1. Compare actual orders with planned deliveries.
2. Prepare a delivery-variance register.
3. Identify transport-capacity constraints.
4. Identify warehouse-capacity constraints.
5. Classify relevant hard and soft constraints.
6. Realign deliveries according to customer priorities.
7. Reallocate transport capacity.
8. Create supplier back orders for stock shortages.
9. Resolve procurement demand-and-supply imbalances.
10. Align the production schedule with revised operational requirements.
11. Submit the coordinated and approved schedules.

Required evidence

Include the following in your Portfolio of Evidence:

• Actual customer-order list
• Original delivery schedule
• Delivery-variance register
• Transport-capacity calculations
• Warehouse-capacity calculations
• Hard-and-soft-constraint register
• Initial and revised delivery schedules
• Revised vehicle and route allocations
• Supplier back-order records
• Updated production schedule
• Schedule-change communications
• Evidence of approval
• Completed observation checklist
• Learner declaration of authenticity

Competence checklist

Lesson Summary

To coordinate transport and distribution activities, compare actual customer orders with planned deliveries and record all variances. Test the revised requirements against stock, warehouse and transport capacity, and distinguish non-negotiable hard constraints from adjustable soft constraints. Realign deliveries using approved customer priorities, reallocate vehicle capacity and create supplier back orders for stock shortages. Coordinate changes with production, procurement and warehouse schedules, communicate approved revisions and monitor execution until all customer commitments are resolved.