On-Time In-Full is a common KPI for measuring Supply Chain performance. It checks if customer orders are delivered on the initially agreed time and that all ordered items were in that delivery.
This is almost always used to measure your outgoing Supply Chain, to ensure Customer satisfaction. But OTIF is also a very useful KPI for your inbound Supply Chain - how proficient is your logistical operation at satisfying your manufacturing departments?
We talk about the 4M's needed for manufacturing: Machine, Material, Method and Manpower - in which Material is usually meant to be that those materials have to be of sufficient and stable quality, but they should also be there when needed, of course. That makes Inbound OTIF a great forward looking KPI for organisations that work with many different products, Just-In-Time logistics, or a less than stellar track record for supplying production lines on time.
#continuousimprovement #OTIF #supplychain
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00:01 Importance of OTIF in Manufacturing
02:32 OTIF for Inbound Logistics
03:45 Impact of Late Deliveries
04:18 Internal Supply Chain and Logistics
05:36 Lean Manufacturing and Inventory Management
07:17 Conclusion and Recommendations
