Understanding OTIF (On-Time In-Full)
On-Time In-Full (OTIF) is a vital performance metric in the manufacturing sector, assessing a supplier’s capability to deliver products within the agreed-upon timeframes and in the exact quantities ordered. This metric is crucial for maintaining efficient and reliable supply chain operations.
Challenges in Achieving OTIF
One of the significant hurdles in achieving a reliable OTIF delivery is data tracking and validity. Without the right tools, capturing, collecting, and consolidating data from various suppliers or products can be a daunting task. Partners like Prima streamline this process, providing advanced analytics solutions to monitor data and evaluate performance. These models help identify bottlenecks and other issues that negatively impact OTIF, ensuring consistent and reliable deliveries.
Calculating OTIF
OTIF combines two key metrics:
Different customers have varied standards for OTIF measurements. Some may penalize late deliveries, while others impose fines for early arrivals to maintain lean inventories.
The Importance of Real-Time Supply Chain Visibility
The increasing need for accurate, real-time insights into the status and location of supply chain assets is evident. Real-time supply chain visibility tools enable manufacturers to meet delivery schedules more effectively, reducing the risk of fines and ensuring better adherence to timetables.
OTIF is a critical metric for ensuring timely and complete deliveries in the manufacturing sector. Utilizing advanced technology for data consolidation and real-time visibility can significantly enhance OTIF scores, minimizing penalties and optimizing supply chain efficiency.
Here at Prima, we have built tools to ensure OTIF in each project to supplement our manufacturing production capabilities. Partner with Prima to leverage Mexico's technological and manufacturing edge and drive your business forward. Contact us now to learn how we can support your nearshoring needs and help you stay ahead in the digital age. Email us at info@prima.ai.
