Because they are using different metrics, they have different views of the same performance. Adopting technology platforms is crucial to meeting this challenge.Īnother challenge is that retailers and manufacturers use different methods to calculate OTIF. The data must be consolidated then validated for quality and consistency in order to calculate a score accurately. The biggest challenge comes in the form of managing and analyzing data from their carrier base. On-time in-full presents some challenges to logistics providers. Proactive management of the supply chain pays off for everyone in the long run. Because it incentivizes accurate and timely delivery, OTIF helps retailers avoid losing out on money due to lack of stock or items being otherwise unsellable.Īlthough it was originally intended to make supply chain management easier for retailers, monitoring OTIF also has the potential to help shippers and carriers improve their processes to their own benefit. OTIF quickly was adopted widely to assess the supply chain for purposes of inventory planning and optimization and order fulfillment. Using on-time in-full as a KPI is a relatively new concept that originated with Walmart in 2017 in response to changing consumer demands.
#Ontime delivery full
As the phrase suggests, it measures a supplier’s ability to deliver a shipment on time at the full amount ordered.Īs consumers expect a broader range of products available at any given time, the supply chain becomes more complex.
On-time in-full (OTIF) is a leading KPI in the logistics industry. So what is on-time in-full (OTIF) and why does it matter for shippers and carriers? On-Time In-Full (OTIF) and Its Challenges First Call Logistics is proud to use this KPI for our carriers delivering to Walmart. Logistics professionals use many key performance indicators (KPI) to meet compliance standards, but few are as impactful as on-time in-full (OTIF) delivery.
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