
“On time and in full” (OTIF) might just be the four most important words associated with any supply chain or logistics operation. The timing and integrity of shipments are equally critical: damaged or compromised goods can cost millions of dollars in losses, and freight can be turned away due to tardiness OR for arriving too early. Either situation can lead to lost revenue, angry customers, fines, or even legal action. In this report, we take a closer look at OTIF and how to leverage track-and-trace and other technologies to improve it.
Since its introduction as a metric in 2017, the concept of OTIF has been used to calculate the percentage of total deliveries that were complete and on time and serves as a measuring stick for effective supply chain operations. Letting OTIF rates drop has shown measurable losses across countless industries, from perishable food products arriving unsaleable due to delays and temperature excursions to excess inventory management costs in the retail industry. Luckily, with real-time shipment location and condition tracking solutions available today, shippers, suppliers, and logistics service providers have more access than ever to actionable data that can help improve OTIF and make supply chain operations more efficient and resilient.
In order to improve on time and in full delivery, it’s important for supply chain and logistics professionals to focus on both alignment and flexibility. Know your customers’ requirements and expectations to set the stage for OTIF success, and make sure all stakeholders from production teams to warehouse staff are aligned and have consistent communication. Leverage historic data to support schedule change requests, make the case for minimum order quantities, and determine which carriers and providers are the best fit for any given project. Finally, leveraging real-time shipment tracking technology and cloud-based software integrations offer a huge competitive advantage when it comes to driving positive operational iterations and ensuring continued improvement in customer experience.
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