On Time In Full
OTIF is generally to know the supplier’s ability to deliver product within prescribed delivery time and full or complete quantities ordered.
It tells the efficiency and effectiveness of the supply chain .
On Time In Full
On Time: This aspect measures whether the product was delivered on or before the agreed-upon delivery date and time . It's about punctuality and ensuring that the customer receives their order when they expect it. Timeliness is crucial in supply chain and operations because delays can lead to dissatisfaction, disruption in operations, or even loss of business.
In Full: This part of OTIF evaluates whether the complete order was delivered or not as requested, with all items and quantities as specified. Delivering in full ensures that the customer receives exactly what they ordered, avoiding issues such as stockouts, production delays, or additional costs associated with expedited shipping of missing items.
Challenges faced by supply chain / When can OTIF come into picture?
Repeat issues with late deliveries or a sudden increase in delivery delays are a sign that your OTIF needs to be monitored more closely.
A high rate of inaccurate orders may suggest a problem in your warehousing and picking operations, which will also affect your OTIF rate.
There is no proper visibility into inventory levels, which results in issues such as stockouts, backorders, split shipments, and fulfillment delays.
No proper warehouse inventory management system, you may have a hard time tracking inventory movement and picking orders accurately.
Importance of OTIF
It helps to ensure customer satisfaction.
OTIF can impact a company's bottom line
OTIF is essential for supply chain efficiency.
An Example of OTIF :
Smithfield, a FourKites Customer, improved its on-time performance from 87% to 94% by improving visibility across all the moving parts of its supply chain. Smithfield ships about 1,000 truckloads of product per day in the US alone. They contract with more than 230 separate trucking companies – that’s a lot of moving parts and a lot of disparate systems. By unifying all of those elements into one single supply chain visibility platform, it suddenly becomes much easier for companies to identify the patterns behind their OTIF performance scores.
Real-time visibility systems helped logistics companies function in the face of global supply chain chaos.