What does DOD mean?
Definition: What is Delivery On Demand (DOD)?
Delivery on Demand means that a product is delivered when it is needed.
An example: a component of a car is delivered exactly when the manufacturer needs to install it. This way no storage is needed which saves storage space. Additionally, only the exact amount that is needed is bought from the supplier. Not only Delivery on Demand, but also Production On Demand is becoming a trend. It means that things like books, furniture or machines are produced only when they are ordered by the customer. This is the case with individualised products, but also with small sales volume products that are not needed in higher quantities.
Pros and cons Delivery On Demand
DOD is becoming ever more important because customers like and expect prompt delivery. The advantages and disadvantages of Delivery on Demand are clear to see:
Delivery On Demand Advantages:
- No storage is needed, saving space
- You get delivered the exact amount that is needed, saving storage space and costs
Delivery On Demand Disadvantages:
- Production can be more expensive
- If delivery is delayed, there is at once a supply shortfall
When a spare part has to be produced individually, Delivery on Demand makes sense as a shipping method. But DOD also needs high flexibility in terms of means of transport. This is where the airmates enter the game. We bring spare parts to their destination, fast, secure and reliable. This way a production line machine can be repaired and the standstill can be reduced to a minimum.