Delivery on Demand Strengthening  Supply Chain Production

In today’s fast-paced business environment, delivery on demand (DOD) has become a crucial component of modern supply chains. Imagine when an automotive manufacturer faces an unexpected shortage of critical components needed for assembly. By leveraging DOD logistics, the manufacturer can swiftly source and arrange delivery of the required components from a supplier halfway across the globe, ensuring that production continues seamlessly.

Particularly companies across the automotive, aerospace, and life sciences industries, are increasingly relying on DOD logistics to meet their urgent and often critical needs.

What is DOD?

Delivery on demand(DOD) refers to a logistics service that provides immediate or near-immediate delivery of goods upon request. Unlike traditional shipping methods that follow a predetermined schedule, DOD offers flexibility and speed, ensuring that products are delivered exactly when they are needed. This service is especially valuable in industries where timing is critical, and delays can have negative consequences.

What are the various types of Delivery on Demand (DOD)?

1. Scheduled Delivery – Customisable:
   Allows customers to specify a delivery date and time window that best suits their needs. This type of DOD is beneficial for coordinating deliveries with production schedules or specific project timelines.
   
2. Same-Day Delivery – Within 12-24 hours:
   Ensures that goods are delivered within 12-24 hours of ordering. This is particularly useful for urgent needs in the automotive, aerospace, and life sciences industries where time-sensitive deliveries are critical.
   
3. On-Board Courier (OBC) – Within 12-24 hours with maximum security:
   Utilises a dedicated courier to personally carry and deliver high-value, time-sensitive items. Similar to same-day delivery in terms of speed (12-24 hours), but it offers maximum security and speed. Often used for critical documents or fragile parts.
   
4. Express Delivery – 1-2 days:
   Offers accelerated shipping options that are faster than standard delivery, typically within 1-2 days. This service is ideal for high-priority shipments that need to be delivered quickly.
   
5. Next-Flight Out (NFO) – Next available flight:
   Utilizes the next available flight to transport urgent shipments quickly. Ideal for critical parts and medical supplies, it offers rapid, reliable delivery across long distances.
   
   
6. Air Charter Services – Within 24-48 hours:
   Employs dedicated aircraft for the exclusive transport of urgent cargo for: off-sized shipments, or remote destinations, or if regular options are unavailable. This option is  often used in the aerospace and automotive industries for urgent parts and equipment.
   
7. Hot Shot Delivery – Within 2-12 hours:
   Focuses on delivering smaller, time-sensitive shipments over short distances on land. This service is commonly used for urgent deliveries that need to bypass standard logistics processes.

What are the benefits and pitfalls of DOD? 

Benefits	Challenges
Enhanced Flexibility One of the primary advantages of DOD logistics is its flexibility. Companies can request deliveries as needed, without being constrained by fixed shipping schedules. This allows for better inventory management and responsiveness to unexpected demands.	High Costs The speed and flexibility of DOD logistics often come at a higher cost compared to traditional shipping methods. However, the cost-effectiveness of DOD depends significantly on the value of the shipment. In the automotive and aerospace industries, where parts and components are often high-value, the cost of delays can far exceed the shipping expenses. For these sectors, the ability to minimize downtime and keep production lines running smoothly justifies the higher cost of DOD logistics.
Reduced Downtime In industries like automotive and aerospace, where production lines must operate seamlessly, DOD helps minimise downtime by ensuring that parts and materials are available when required. This can lead to significant cost savings and increased production output .	Complex Coordination Managing DOD logistics requires precise coordination and real-time tracking to ensure timely deliveries. This can be challenging, especially for companies with complex supply chains spanning multiple regions.
Advancement of Innovation In the Life Sciences sectors, timely delivery of temperature-controlled shipments  is crucial for patient care, research breakthroughs and pharmaceutical production. DOD ensures that biologics professional receive the necessary products promptly, enhancing the advancement of the life science industry.	Risk of Errors The urgency associated with DOD logistics can increase the risk of errors in order processing and delivery. Companies need to implement stringent quality control measures to mitigate these risks and maintain service reliability.

How can we implement DOD in a supply chain?

Streamlining Automotive Production with JIT Delivery

In the automotive industry, tier-one suppliers rely on on-board courier (OBC) services to deliver critical components directly to Original Equipment Manufacturers (OEMs). These parts are essential for just-in-time (JIT) production systems, where timely delivery is crucial to avoid production delays and reduce inventory costs. The OBC ensures secure and fast delivery, maintaining the efficiency and flow of the production line.

Ensuring Timely Aerospace Component Delivery to Prevent AOG Situations

In the aerospace sector, Aircraft on Ground (AOG) situations can be extremely costly and disruptive, which can cost airlines up to USD 150,000 per hour. To address these emergencies, air charter services are used to transport urgent parts quickly from suppliers to the aircraft’s location. This dedicated service bypasses standard logistics, ensuring the fastest possible delivery and minimizing downtime, keeping flight schedules intact and reducing financial losses.

Optimising Pharmaceutical Supply Chains for Urgent Medical Needs

Pharmaceutical companies often need to ship sensitive materials, such as cell and gene therapies, urgently for medical operations. Emergency delivery services with real-time tracking and temperature-controlled logistics are employed to ensure these critical shipments reach hospitals and clinics promptly. 

A Powerful Strategy in Modern Supply Chains

With the key benefits and challenges of DOD, Time Critical Solutions is a crucial service that supports  the service for industries such as automotive, aerospace, and life sciences. Royale International, throughout 30+ years of experience in B2B logistics solutions, meet the needs of our clients ranging from SMEs to Fortune 500 corporations and global MNCs. Whatever your shipping requirements, Royale International is dedicated to making it happen.

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Need to make a Time Critical shipment happen? handcarry@royaleinternational.com or nfo@royaleinternational.com.