OTIF (On-Time In-Full) Supply Chains

On-time, in-full (OTIF) stands as a crucial metric in supply chain management, evaluating a supplier's proficiency in delivering goods both on time and in the expected quantity and condition.

Companies adopting OTIF practices strive for a delicate balance between timely deliveries and maintaining the quality and completeness of shipments. This metric reflects the supplier's commitment and reliability and fosters trust with buyers. The higher the percentage of OTIF deliveries, the higher the supplier's reliability.

The formula for calculating OTIF: (Orders delivered on time/Total number of orders shipped) * 100

However, the intricacies of ocean transportation, marked by transshipments, cargo rollovers, and port congestion, contribute to the complexity of achieving OTIF deliveries.

Improving the OTIF Performance

Companies can look to improve their OTIF performance by doing the following:

1. Employ advanced real-time ocean freight visibility solutions for continuous vessel tracking, maintaining constant awareness of cargo movement statuses.
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2. Obtain accurate and timely ETA predictions through container tracking platforms to enable proactive intervention in case of issues or potential delays that could impact OTIF delivery.
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3. Foster transparent communication with buyers by keeping them consistently informed about the cargo delivery status. Regular and timely updates contribute to building a stronger and more collaborative relationship between suppliers and buyers.