Promise date is the shipment date committed to by a vendor. In some industries and contracts, the promise date is the date of delivery at the customer site.
It is generally a date given to the customer for delivery of his/her orders. It can also be regarded as the date the vendor delivers the shipment and is sincerely maintained by constructing an MPS which keeps a tab on all the approaching promise dates, within a given time fence.
It is usually an assumed date which considers the time required for completing all the processing activities and the time required for the finished product to be available for the customer. The company also must converse with the customer before deciding the promise date.
How does it help to build-up trust?
- Prompt delivery date by the company shows confidence and transparency in the work. It sends a positive message about the reputation of the company.
- If the customer is kept waiting for a long period without a promised delivery date, they might start to doubt the competency of the firm, even though there has been no delay.
- A good follow up routine on promise dates that are due or are going to be missed due to some unforeseen situation is important. This way the customer knows that the firm is into the job and has taken full responsibility until the delivery is complete.
- Good customer service is very important and does not go unnoticed.
- Customer satisfaction is also company policy. A good reputation and positive reviews depend largely on the customer feedbacks from on-time deliveries.
As the promised delivery date is an important component, it is generally managed by a computer-generated system and is regularly followed up with. An unmet delivery date needs to be addressed properly, with proper reasons and the next delivery date. If not, it can result in the customer leaving for some other seller with a more sincere track record.
Few do’s and don’ts of promise date
- Do not assign an arbitrary date, without consulting the lead time required for your system to generate a finished product.
- Always ask the customer for a probable delivery date according to their comfort, before assigning your probable date. Simply inquiring about their convenience is fine.
- Do not forget to follow up on backorders, which should be met with as soon as possible.
- It is no use giving delivery dates one after the other, just to keep the account of your books. It will only give rise to anger and discontent. Try to meet the dates anyhow.
- Keep the proceeding of your company clean. The customer must be informed about the number of business days you require, and under no situation should he/she be given a close date just to impress.
The promised delivery dates must also consider the distance you need to deliver (if you are delivering to their homes), and the lead time required for your vendor to travel. An on-time delivery also shows how efficiently your system works, which might bring back the customer for another order.
Get more definitions about promise date and other ERP related terms here.