Expediting
concept
Expediting is a concept in purchasing and project management for securing the quality and timely delivery of goods and components.
The procurement department or an external expeditor controls the progress of manufacturing at the supplier concerning quality, packing, conformity with standards and set timelines. Thus the expeditor makes sure that the required goods arrive at the appointed date in the agreed quality at the agreed location.
Need
Expediting is especially needed in large scale projects, for example, in shipbuilding or when a refinery is being erected, because a delay caused by late delivery or inferior quality will increase expense and could lead to unsatisfied clients, thus the loss of a project or reputational damage. To save these unnecessary costs and minimize potential risks, the supplier and customer may agree on the use of a third party expeditor. These are experts from companies specializing in this field who keep track of the deadlines, supervise progress on site and check whether the components are properly packed. After inspection they notify the involved parties and banks about their findings; if everything is as agreed the bank will initiate the transfer of the price of the goods to the supplier. In this way, the supplier secures his liquidity as he is paid immediately when the components leave his factory (letter of credit) and the customer/bank knows that the goods will be delivered correctly. Expediting is relevant for many industries, such as the oil and gas industry, the general energy industry and the infrastructure industry.
Expediting exists in several levels:
Production control: The expeditor inspects the factory whether the production is up to the standards of the country the goods are destined for.
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This entry incorporates text from “Expediting” on English Wikipedia. Contributors are listed in the page history. Text is available under the Creative Commons Attribution-ShareAlike 4.0 License. Selected authority identifiers and statements are retrieved from Wikidata under CC0; their references and qualifiers remain part of the verification path.