How to Improve On Time In Full Delivery (OTIF) Performance?
On Time In Full Delivery
OTIF delivery – if you are sales manager, warehouse manager or supply chain specialist, is a vital indicator of your company’s performance. Your success at delivering in full and on time is how your company will be judged. Software systems such as Cloud ERP can give you exactly the kind of visibility you need and is one of the best reasons for choosing cloud ERP for your business – as these kind of KPIs put you in control.
SAP Business ByDesign offers you the opportunity to set up KPIs for your company and monitor them from your dashboard. You can then really drill down into the details to reveal the root cause of any problems before coming up with solutions on how to deal with them.
For example; you may find that the issue lies with a certain sales unit or that a particular customer is effected more than others or there may be a certain product that is causing the delays.
We run workshops for users on setting KPIs for SAP Business ByDesign – please do get in touch if you would like to attend one – you don’t need to be a current customer; e-mail [email protected] she would love to hear from you and help you out.
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In the meantime here is an excellent blog written by Iris Zimmermann on how to;
Get more insights into delivery performance: with the On Time In Full Delivery (OTIF) Report and KPI
On Time in Full (OTIF) Delivery is a well-known KPI to analyze the supply chain process. On Time in Full means, that the company was able to deliver the full quantity requested by the customer on the requested date the latest. The OTIF can be measured for a complete order, meaning that all items of one sales order are delivered on-time and in full. It might also make sense to measure the On Time in Full for individual items of a sales order. In this blog I will focus on the OTIF on order level, as this is the more comprehensive KPI.
How is the KPI calculated: If a sales order consists of multiple items and only one of the items is either partially delivered or not on time, the OTIF Delivery KPI for the complete sales order is ‘not achieved’ or = 0%, otherwise it is ‘achieved’ or = 100%.
As reference date and quantity in SAP Business ByDesign we will use the ‘requested date’ of the sales order item and the requested quantity and compare it with the delivered dates and quantities taken from the corresponding deliveries.
Based on the OTIF report you can track your overall delivery performance on a more aggregated level and further analyze the root cause of a bad KPI value by drilling down to the details, e.g. you can analyze the KPI on sales unit, customer, or product category level.
The Report looks as follows (drilled down to sales unit and account level):
The OTIF key figure is shown in the column ‘On Time in Full Delivered By Order in %’. For the last 4 weeks, OTIF is aggregated over a total number of 182 sales orders (2nd Column: Order Count). 164 out of the 182 sales orders have been delivered on time and in full, which leads to an OTIF percentage of 92,31 %. 14 sales orders have been delivered delayed or partially (3rd key figure column Delayed or Partially Delivered). The 5th column ‘In Full Delivered Order’ shows more specifically the number of fully delivered orders – even if they were delayed. The 6th column ‘On Time Delivered Order’ displays orders delivered on time – even if they were only partially delivered.
For help achieving a better OTIF performance please get in touch with In Cloud Solutions – we can help! Mail [email protected]
Very low key figure values for On time in Full Delivered By Order in % are highlighted in orange or red.
In week 32/2018 in the sales unit P1100, the customer Low Plumbing & Heating got only one out of five sales orders delivered as requested. The last 2 columns are used best when drilling down to the characteristic sales order level.
Here we can find the following:
As we have seen before: One sales order of Low Plumbing & Heating was delivered in full and on time.
Additionally we can see that 3 of the sales orders were delivered in full, but too late. One sales order was delivered on time but only with a partial quantity.
Lucy is an experienced BBC journalist and writer now creating business content as part of an integrated approach to digital marketing. If you would like to be interviewed for this blog then please get in touch [email protected]