Improving Your On-Time-In-Full (OTIF) Score
Two in every five business owners state that delayed or incomplete deliveries are problems they face on a regular basis. And this in turn massively hampers their customer serviceability and increases the costs of delivery. For logistics managers, on-Time-In-Full (OTIF) score is a very important delivery parameter. However, not many of them can boast of having cracked the problem of late/incomplete deliveries and the repercussions that ensue.
The gap between Targets & Reality
In order to improve the OTIF score, let us first understand what causes a delayed and/or incomplete delivery.
- Lack of real-time visibility of the shipments – Process of ensuring the driver is on track is very manually driven where the logistics coordinator calls up the driver/transporter to check on him.
- No single platform to track all shipments – Even though the GPS based tracking technology is omnipresent, a shipper typically works with multiple transporters, each having its own GPS systems on different platforms, which leads to inefficiency & delay.
- No solution to track market vehicles – With all the companies going for asset-light models for transportation, a very high percentage of deliveries happen via market vehicles. In such cases, it is not possible to install a GPS device to get the real-time location of the shipment.
- Temperature non-compliance during transit & storage of perishable goods – Perishable goods are prone to be damaged if right temperature and humidity conditions are not maintained during in-transit and in storage locations. This leads to losses which inturn impact OTIF compliance.
- No actionable data on vendors’ performance – While we all agree that timely deliveries of shipments, especially long-hauls, are subject to factors beyond anyone’s control, there will always be some transporters who are regular defaulters, raising questions about their capabilities and seriousness. In the absence of transporter performance data, it becomes difficult to remove the poor performers from the system.
- A lot of data but no real actionable insights – A shipper may be using multiple systems in bits and pieces to track shipments in real-time, thereby generating humongous data. But the issue arises when random data points do not add any value to him. What a shipper wants is insights based on which he can make data-driven decisions and improve OTIF parameters.
- No instant notifications on time and quality of deliveries – the traditional method of sending signed LR/CN copy by the courier as proof of delivery (POD) is flawed because you do not get real-time delivery notification & feedback. These two measures are very important to meet OTIF targets and take immediate corrective actions, wherever needed.
How can technology help here?
Management thinker, Peter Drucker has rightly said: “If You Can’t Measure It, You Can’t Improve It”. The only way to improve your OTIF parameters is to bring in complete visibility and control over shipments in transit. Let us identify ways by which technology can help you to do so.
- Better temperature compliance for goods-in-transit & in storage – For perishable and temperature-sensitive products, it is very important to maintain the required temperature throughout the supply chain. Real-time monitoring, conflict alerts and notifications in case of any deviation can help one improve their OTIF targets.
- One integrated platform to track all your shipments – Imagine if there is one platform to track all your shipments in-transit, regardless of the GPS device being used by your transporter. Imagine the same platform giving you the option to track market vehicles where there is no GPS device. Such a platform will definitely empower a shipper to track all the shipments and reduce manual intervention.
- Vendor performance management – If you have a track record of transporter performance, you can then categorize them as the most & the least preferred ones. This will help you take improved decisions during transporter allocation. Efficient transporters undoubtedly help you achieve on-time and complete delivery of the orders, thus improving your OTIF scores.
- Data-driven decision making – it always helps when you make decisions not based on gut or experience but based on data. If the shipper has insights like ETA for all the shipments, a list of delayed shipments on a given day, complete analysis of vendor performance for the past 1 year, etc, then he/she can achieve better on-time compliance.
- Electronic Proof of Delivery – A simple mobile-based solution to capture the proof of delivery will give the shipper instant feedback on the quality of delivery and take necessary steps in case of any discrepancies. It’s even easier to handle customer disputes when photos and GPS time stamps are available for every delivered order.
Elixia’s AI & IoT driven platform to improve OTIF
Elixia tech’s Integrated platform (IP) provides you end to end visibility of your products until the time it reaches the customers. This solution provides real-time visibility of shipments and generates predictive signals in case of any deviations. Our recent launch of the Vendor Performance module helps you weed out non-performing vendors. All this put together will definitely help in improving the OTIF parameters of your deliveries.
To know more about the product, reach out to us at firstname.lastname@example.org or request a demo here.