Meta:- Master OTIF in the supply chain! Learn the ropes and crunch the numbers with our guide on calculating On-Time In-Full. Supply chain success starts here!
In a supply chain setting, OTIF stands for "On Time In Full." It is a metric that is used to measure the success of a company's delivery process. OTIF can be calculated by measuring the number of deliveries made on time and in full by the total number of deliveries. It can be used as a performance indicator for suppliers, manufacturers, and logistics companies. In this post, we will explain what OTIF is, how to calculate it, and how it can help you maximize efficiency within the supply chain!
OTIF is a metric used to measure the success of a company's delivery process. OTIF calculates the percentage of on-time deliveries made in full vs. the total amount of deliveries and can be used as a performance indicator for suppliers, manufacturers, and logistics companies. Achieving OTIF in the supply chain can be challenging, but there are some tips and tricks that can help improve your OTIF performance.
Being on-time and in full (OTIF) has become increasingly essential for many logistics providers and within supply chains over the past few years, with big firms leading the way. In some instances, companies that produce physical goods—in sectors such as food and beverages or consumer packaged goods—can be fined heavily if they don't meet OTIF KPIs.
OTIF is significant for businesses and CPG firms because it indicates that the product is available on the shelf when consumers are ready to buy. With the rise of products and SKUs, supply chain complexity is also increasing. However, this presents a lot of opportunity for value in the supply chain if it can be unlocked. This is easier said than done for a number of reasons.
OTIF follows the same basic steps as RTLS but with some notable differences. First, because OTIF is a process that involves numerous parties (a merchant, a vendor, and a transporter), the problem gets more difficult as most organizations rely on their ERP systems to compute it. Because ERP typically does not have access beyond the "four walls" of the organization, trading partners may find it challenging to work together in order to optimize OTIF with legacy systems.
A large challenge of OTIF is consolidating data from your transportation partner into one place and ensuring its quality and consistency. Once you do so, platforms like Adapt Ideations' can help you monitor the data to assess performance over time, and identify bottlenecks slowing your progress, and issues that are preventing you from meeting customers' expectations.
OTIF is a supply chain and logistics industry acronym that refers to a metric that assesses a supplier's capacity to meet delivery deadlines and ensure the full quantity has been delivered to the correct location.
OTIF is composed of two distinct metrics:
On-time tracking measures how close a delivery was to the scheduled appointment time.
In-full is a term used to describe the quantity of product delivered to customers, relative to their request. In other words, it measures if customers have received more than they ordered, less than ordered, or the correct amount that needs to be fulfilled.