The days of packaging and delivery forgiveness for product shipments are over. Retailers, especially Walmart, are enhancing their OTIF (On Time In Full) requirements and creating stricter guidelines. While the new rules are shaking up supply chain management for suppliers, they also bring new opportunities to stay competitive. You’re probably asking yourselves a lot of questions with all of these changes. But, are you asking the right questions to get the most for your business?
There are two components of the OTIF Score metric, On Time and In Full. Your supply chain must be successful in both to achieve good OTIF results.
Research in Retailers’ OTIF reporting modules for performance failures can provide a root cause. Many Retailers track performance failure by category. These modules will also identify departments and SKUs causing performance failures for further research. Furthermore, the reporting modules will give you additional items to investigate and resolve; which might improve OTIF performance.
CPG companies should be looking at each ship facilities for consistently on time and recurring late/early occurrences. Perhaps there are best practices that can be applied to problem warehouses which will resolve issues across multiple DCs.
Vendors should explore consolidation options if they haven’t already. If you are consolidating and still falling short, using a third-party analytics provider to analyze your metrics and hold carriers or logistics companies accountable can be very valuable.
Verification that supplier accountability is being weighed when planning internal changes based on OTIF is also very important. For example, your month to month score may be hovering around 83-85, but Walmart may accept responsibility for a large portion of these failures, pushing their total OTIF into the 90s. In the long term, you should want to address delivery performance failures directly, but you shouldn’t push internal changes if Walmart’s issues are constantly driving your performance metrics down.
Managing a supply chain is time-consuming, but SupplyPike’s OTIF Radar app can help streamline the business analysis process, making more efficient use of your valuable time. Out-of-the-box and customizable reports on a flexible dashboard allow your team members to spend less time running reports and more time focusing on and analyzing the operational problems affecting your OTIF results and your business operations.
In the end, remember delivering good OTIF results is a multi-step process with multiple business partners affecting your company’s performance. Follow the suggested error discovery process, and be systematic in your corrective actions. Good OTIF performance requires you to be vigilant and monitor your weekly/monthly metrics. It is not a one-time “fix it and forget” event. Remember to spend more of your time solving recurring issues; not one-off issues that will continue to occur.
SupplyPike builds software to help retail suppliers fight deductions, meet compliance standards, and dig down to root cause issues in their supply chain.Visit their Website ➝