OTIF, which stands for On-Time In-Full, is a key performance indicator used to measure the efficiency and effectiveness of supply chain operations.
In logistics, OTIF refers to the percentage of orders delivered to customers on time and in full, meaning that the right products are delivered to the right place, at the right time, and in the right quantity. Achieving a high OTIF rate is crucial for meeting customer expectations, reducing stockouts, and minimizing costly delays or disruptions in the supply chain. Logistics companies and retailers often set OTIF targets to ensure timely and complete delivery of goods, thereby enhancing customer satisfaction and loyalty.
Walmart created the concept of OTIF in 2017 to track supplier performance, drive store improvements, and increase customer satisfaction, however, the concept of OTIF is not limited to logistics or retail, and extends to plastic manufacturing as well.
In manufacturing, OTIF represents the ability to produce and deliver goods according to the required specifications, quantities, and schedules. Meeting production schedules and delivering finished products on time are essential for maintaining efficient operations, meeting customer demand, and optimizing inventory levels. Something that market-leading #injectionmolding company ADIS prides itself on.
While the calculation itself can vary slightly company to company, the general structure is very straightforward: On-Time = (Delivery Time) - (Confirmed delivery time); In Full = (Cases matching the criteria) / (Total number of cases)
By focusing on OTIF, companies such as ADIS can streamline production processes, minimize waste and downtime, and improve overall productivity and profitability. Additionally, a high OTIF rate demonstrates reliability, responsiveness, and commitment to customer satisfaction, which are critical for building and sustaining competitive advantage in the marketplace.
Find out more about how ADIS delivers quality with integrity, on-time every time by getting in touch with us today.
