Importance of On-Time Delivery

The performance of Lockheed Martin's supply base is critically important to meeting our customer’s mission expectations.

The following message from Vice President of Strategic Sourcing, Andy Booker was distributed August 29, 2024 --

The performance of Lockheed Martin's supply base is critically important to meeting our customer’s mission expectations.  The PO Contract Date is a mutual agreement between Lockheed Martin and its suppliers that represents a commitment to meet the contractual obligation of on-time delivery (OTD). We use suppliers’ OTD measures to evaluate performance and to inform future sourcing decisions. A consistent ability of our suppliers to meet OTD commitments is accordingly an increased area of focus for us which promotes trust and collaboration within our supply chain relationships.

Why supplier OTD is important:

• Customer Satisfaction: Meeting delivery deadlines is essential to keeping Lockheed Martin meeting our commitments.
• Reputation: Supplier reputation is built on an ability to deliver products on time. A track record of on-time delivery can help establish a positive reputation within all functions at Lockheed Martin.
• Detect and mitigate potential late deliveries earlier.
• Cultivate more collaborative and transparent Lockheed Martin Supply Chain relationships.

Overall, on-time delivery is essential for building customer trust through the enablement of their mission success, maintaining a positive reputation, improving efficiency, and potentially gaining a competitive advantage.

Together, we can drive improved supply chain performance, increase Lockheed Martin business competitiveness (We win, you win), and deliver industry-leading solutions more efficiently. To understand where your company is regarding this On-Time Delivery metric, please contact your Lockheed Martin procurement representative for more details.

Thank you for your dedication and partnership in driving excellence within our supply chain.