Maximize otif

On-time in-full (OTIF) is a supply chain metric within the logistics sector that assesses performance efficiency. OTIF is a supplier’s capability to deliver goods within designated timeframes and in the exact quantities specified in the order. Charges for not being OTIF are painful.

Have OTIF (On-time, In-full) charges got you down?   

Here is what you can do to reduce and potentially eliminate OTIF fines.

Stopping late fines requires shipping on time –the “OT” of OTIF

Most carriers and virtually every driver want to deliver on time. According to industry data, for the most part, if the load is ready on time, the shipment will be late less than 20% of the time.

The most significant cause of lateness is shipping late. 80% of late shipments weren’t ready on time at the distribution center (DC). 

The key to shipping on time is accurately predicting the DC workload and performing the tasks needed to make all the load components, like case pick, received product, etc., arrive at the dock at the right time. The devil is in the details. Shipping on time depends on coordinating tasks and resources:

  • Receiving needed product potentially in time for it to be put into the case pick area and then be picked
  • Unloading, picking, and loading labor
  • Equipment like forklifts
  • Available dock doors and staging space

It’s an empty trailer. Sometimes, a trailer must be unloaded to free it up for an outbound load.

It’s hard for a warehouse manager to track all these activities and all the dependencies to make the shipment on time. AutoPilot from AutoScheduler.ai can keep activities sequenced correctly and ensure all resources, like people, equipment, and dock doors, are effectively utilized at the right time to deliver on time.   

 

Having all the product in full – The “IF” of OTIF

If the inventory is on-site—in a trailer, an outbuilding, or the warehouse itself –it should be shipped. 

Again, AutoPilot from AutoScheduler can ensure that inventory is moved from another building or unloaded from a trailer in time to be picked and loaded on time.  

But the product has to be there. That is the role of supply planning. Unfortunately, supply planning systems react to customer demand in a way that can sometimes resemble a bullwhip effect. There may be so many shipments arriving that the site is overloaded, runs out of space, or can’t be received because it is buried in a “buried” trailer.    

To ensure a smooth flow of most-needed products to the DC, LevelLoad modifies the supply-planning system’s output using advanced mathematics, creating a smoothed, feasible, network-wide plan that ensures the highest-priority product reaches where it is needed most. 

To quote a VP of Supply-chain planning, “LevelLoad improves inventory assortment and order fill.” LevelLoad also reduces transportation costs as smoothed flows on each lane ensure that preferred carriers can be used. “It saved many millions.”

Maximize OTIF

In conclusion, maximizing OTIF (On-Time In-Full) is crucially important for performance. Failure to meet OTIF standards can result in significant financial penalties, emphasizing the importance of optimizing supply chain operations. 

By implementing solutions like AutoPilot from AutoScheduler.ai to streamline scheduling and resource allocation and utilizing tools like LevelLoad to enhance supply planning and inventory management, businesses can mitigate the risk of OTIF fines and ensure smoother, more efficient logistics operations.

Investing in these technologies can ultimately lead to improved customer satisfaction, reduced costs, and increased profitability in the long run.

Download Our eBook

OTIF EBOOK