Learning Outcomes

After completing this lesson, learners will be able to:

• Explain the planning and control of order delivery.
• Identify the information and resources required for delivery planning.
• Explain the principles of customer and end-user credit control.
• Describe how credit decisions affect supply chain operations.
• Explain the interaction between units involved in order delivery.
• Describe the principles of service-execution management.
• Explain how delivery performance is monitored and improved.

1. Managing Service Delivery

Managing service delivery involves planning, coordinating, monitoring and controlling the activities required to provide the agreed product or service to the customer.

Effective service delivery ensures that:

• The correct order is delivered.
• The required quantity is supplied.
• Products arrive in acceptable condition.
• Delivery takes place at the agreed location.
• Delivery occurs within the agreed timeframe.
• Costs remain controlled.
• Customer requirements and service standards are met.

Service delivery requires coordination between customer service, sales, finance, inventory, warehousing, transport and the customer.

2. Planning Order Delivery

Delivery planning begins after an order has been received and validated.

The delivery plan should establish:

• What must be delivered
• The quantity required
• The delivery destination
• The required delivery date
• The transport method
• The vehicle or carrier
• The route
• Packaging and handling requirements
• Documentation requirements
• Customer instructions
• Delivery risks
• Proof-of-delivery requirements

3. Delivery-Planning Process

Step 1: Collect Order Information

Confirm:

• Customer name
• Contact details
• Delivery address
• Product or service
• Quantity
• Required delivery date
• Order number
• Special handling requirements
• Customer receiving hours
• Access restrictions

Incomplete or inaccurate information can cause failed or delayed delivery.

Step 2: Confirm Order and Credit Status

Before fulfilment, confirm that:

• The order is valid.
• Prices and terms are correct.
• The customer is authorised.
• Credit is available, where applicable.
• Required payment has been received.
• The order complies with the contract.

Step 3: Confirm Inventory

The organisation must verify that the required products are:

• Available
• Reserved for the order
• In acceptable condition
• Located and accessible
• Ready within the required timeframe

A system record should not be accepted without investigation when physical stock discrepancies are known.

Step 4: Select the Delivery Method

The delivery method may include:

• Organisation-owned vehicles
• Courier services
• Third-party transport providers
• Customer collection
• Rail, air or sea freight
• Multimodal transport

Selection should consider:

• Cost
• Distance
• Delivery urgency
• Product characteristics
• Shipment size
• Security
• Reliability
• Customer requirements

Step 5: Calculate the Delivery Timeframe

Delivery time should consider:

• Picking and packing time
• Dispatch cut-off times
• Travel distance
• Vehicle availability
• Loading and unloading
• Traffic
• Border or customs processes
• Customer receiving hours
• Possible disruptions

South African delivery planning may also need to consider long road distances, congestion around major centres, border-post delays, road conditions and infrastructure interruptions.

Step 6: Prioritise Orders

Orders may be prioritised according to:

• Agreed service level
• Required delivery date
• Product urgency
• Customer need
• Contract conditions
• Product shelf life
• Operational risk

Priority decisions must use approved criteria and should not unfairly disadvantage other customers.

Step 7: Plan the Route

Route planning aims to reduce:

• Travel time
• Distance
• Fuel consumption
• Empty kilometres
• Late deliveries
• Vehicle operating costs

Deliveries in similar locations may be grouped where doing so does not compromise service commitments.

Step 8: Prepare and Check the Order

Before dispatch:

• Pick the correct items.
• Verify quantities.
• Inspect product quality.
• Use suitable packaging.
• Apply correct labels.
• Prepare the required documents.
• Confirm delivery instructions.
• Record dispatch details.

Step 9: Notify the Customer

The customer should receive appropriate information, such as:

• Order confirmation
• Planned delivery date
• Expected delivery window
• Tracking information
• Changes or delays
• Collection requirements

Step 10: Track and Control Delivery

Once dispatched, delivery should be monitored until completion.

Monitoring may include:

• Vehicle location
• Shipment status
• Estimated arrival
• Delays
• Delivery exceptions
• Product condition
• Proof of delivery

4. Delivery Control

Delivery control compares actual delivery performance with the plan.

It involves:

1. Establishing delivery standards.
2. Recording delivery information.
3. Comparing actual and planned performance.
4. Identifying deviations.
5. Investigating causes.
6. Implementing corrective action.
7. Communicating with affected parties.
8. Recording the outcome.

Delivery-Control Measures

5. Delivery Exceptions

A delivery exception is an event that prevents delivery from proceeding as planned.

Examples include:

• Vehicle breakdown
• Traffic disruption
• Road closure
• Incorrect address
• Customer unavailable
• Product damage
• Documentation errors
• Stock shortage
• Security incident
• Extreme weather
• Border delay

When an exception occurs, the responsible employee should:

1. Record the event.
2. Assess its effect.
3. Notify the relevant internal units.
4. Inform the customer where necessary.
5. Select an approved corrective action.
6. Update the delivery plan and system.
7. Monitor the revised delivery.
8. investigate the cause if the issue is recurrent.

6. Credit Control

Credit control is the process used to assess, approve, monitor and collect credit extended to customers.

The objectives are to:

• Support appropriate customer sales
• Protect organisational cash flow
• Reduce overdue accounts
• Limit bad debts
• Ensure credit terms are followed
• Identify financial risk

Credit control must balance customer service with financial responsibility.

7. Credit Evaluation

Before granting credit, an organisation may assess:

• Customer identity
• Financial history
• Payment behaviour
• Credit reports
• Existing debt
• Income or financial position
• Trade references
• Order volumes
• Risk profile

Credit should be approved according to organisational policy and delegated authority.

8. Credit Limits

A credit limit is the maximum approved amount a customer may owe at a particular time.

Before accepting a credit order, the organisation should consider:

• Approved credit limit
• Current outstanding balance
• Unprocessed orders
• Overdue amounts
• Payment history
• Available credit

Example

A customer has:

• Credit limit: R100,000
• Outstanding balance: R70,000
• Confirmed unprocessed orders: R10,000

The customer has R20,000 in remaining credit, subject to organisational policy.

An order exceeding this amount may require:

• Partial or full payment
• Credit approval
• A reduced order
• Release of the order after payment
• Another approved arrangement

9. Credit Terms

Credit terms define:

• Payment period
• Payment method
• Credit limit
• Early-payment discounts
• Interest or penalties
• Dispute procedures
• Consequences of late payment

Credit terms must be communicated clearly and applied consistently.

10. Invoicing and Payment Monitoring

Effective credit control requires:

• Accurate invoices
• Prompt invoice delivery
• Correct customer details
• Clear payment dates
• Payment allocation
• Account reconciliation
• Monitoring overdue balances
• Customer follow-up

An incorrect invoice can delay payment and create unnecessary disputes.

11. Managing Late Payment

When payment becomes overdue, the organisation may:

1. Confirm that the invoice is correct.
2. Check whether a dispute exists.
3. Contact the customer.
4. Issue a reminder or statement.
5. Agree on an authorised payment arrangement.
6. Restrict additional credit where required.
7. Escalate the account.
8. Begin approved recovery procedures.

All actions must comply with contracts, organisational policy and applicable legal requirements.

12. Credit Control and Order Delivery

Credit status can affect whether an order is:

• Accepted
• Placed on hold
• Released
• Partially fulfilled
• Cancelled
• Escalated for approval

Sales or customer-service employees should not bypass approved credit controls simply to meet a sales or delivery target.

Poor coordination between sales, finance and order fulfilment may result in:

• Unauthorised credit
• Orders being prepared but not released
• Delayed deliveries
• Customer disputes
• Bad debt
• Wasted warehouse and transport capacity

13. Units Involved in Order Delivery

14. Information Flow Between Units

Order delivery depends on accurate information moving between the responsible units.

Customer order
      ↓
Sales and customer service
      ↓
Finance and credit approval
      ↓
Inventory availability
      ↓
Production or procurement, if required
      ↓
Warehouse preparation
      ↓
Transport planning
      ↓
Customer delivery
      ↓
Proof of delivery and invoicing

A change to the order must be communicated to every affected unit.

For example, changing the delivery date may affect:

• Inventory reservation
• Warehouse scheduling
• Vehicle capacity
• Route planning
• Invoicing
• Customer communication

15. Service-Execution Management

Service-execution management ensures that services are delivered according to the approved plan, customer requirement and agreed performance standard.

It includes:

Service Planning

Define:

• Scope
• Deliverables
• Targets
• Resources
• Responsibilities
• Timelines
• Dependencies

Resource Allocation

Allocate suitable:

• Employees
• Equipment
• Inventory
• Vehicles
• Technology
• Time
• Budget

Coordination and Communication

Ensure that all responsible parties understand:

• What must be done
• Who must do it
• When it must be completed
• How progress will be reported
• How problems will be escalated

Quality Assurance

Use inspections, checks and performance reviews to confirm that service requirements are met.

Risk Management

Identify possible failures and prepare suitable controls or contingency arrangements.

Monitoring and Evaluation

Compare actual performance with:

• Delivery plans
• Customer requirements
• SLAs
• Budgets
• Quality standards
• Operational targets

Continuous Improvement

Use performance information and customer feedback to correct weaknesses and improve future service delivery.

16. Service-Execution Controls

Useful controls include:

• Approved operating procedures
• Order-verification checks
• Credit approval
• Inventory allocation
• Dispatch checks
• Delivery tracking
• Proof of delivery
• Exception reporting
• SLA reports
• Customer feedback
• Corrective-action records

Controls should support service delivery without creating unnecessary delays.

17. Lesson Summary

• Delivery planning establishes what, when, where and how an order will be delivered.
• Order information, credit status, inventory and transport capacity must be confirmed.
• Delivery control compares actual performance with the approved plan.
• Exceptions must be recorded, communicated and corrected.
• Credit control protects cash flow and reduces financial risk.
• Credit limits and payment terms affect order acceptance and release.
• Sales, finance, inventory, warehousing and transport must coordinate their activities.
• Service-execution management covers planning, resources, communication, quality, risk and performance.
• Delivery results and customer feedback should support continuous improvement.