Our objective is to help the teams that are in charge of purchasing, production, and shipping, to deliver on the expectations that the sales and marketing teams have built for our customer. We may sell items based on prices or quality, but our customers expect us to deliver what we sell. The first requirement is that we deliver our products On-Time and In-Full (OTIF).
Note
As a logistics manager, I want to analyze what percentage of our orders are OTIF so that I can look for opportunities to improve our operations or adjust the expectations built by the sales team.
We are not only concerned about whether the delivery arrives on time but also whether it is completed without any returns. Although, in some cases, early deliveries may be a problem, we will assume that they are not in this case. We calculate OTIF with the following formula:
OTIF = the number of line items shipped on or before promised delivery and complete divided by the total number of line items shipped
When...