Are poor deliveries to your customer costing your business too much?
OTIF, or On Time In Full, is a simple way to measure your business’ ability to keep its promises. There are many ways to keep score of how your business is performing, but OTIF boils it down to its essence – keeping promises made to your customers.
Some customers are happy to measure 990 delivered parts out of an order of 1000, giving a possible score of 99% delivery performance. But what about the customer who expects you to deliver all 1000 on the day promised?
In this example the OTIF score would be 0%. Standards keep on improving in business and for many organisations this is a make or break situation. Customers expect to receive their complete orders when you agreed to deliver them.
Make it simple
When you stand back and look at your business you can see a whole range of activities, some that add value to your customers (and some that don’t!) and some that help you deliver on time (and some that don’t). Re-designing your business so that delivering on time can be a straightforward process. Here are some tips below to get you thinking:
- Make sure that your decision making helps you to deliver on time.
- If your business seems complicated then strip out complexity and become simple.
- Find out what stops you from starting on time.
- Identify the little tasks that trip you up and fix them once and for all.
- Create useful routines so that delivering on time becomes like clockwork.
Win more business
Delivering on time, whether its products or services, can open up new opportunities for your business.
If you become reliable as a supplier then there could be new business opportunities, this is often one of the major benefits of investing the time and effort to fix this problem.
Of course, if you are delivering on time more easily than before, your profits could well improve also (as sub-contracting, overtime and extra deliveries all reduce).
Download our free report on improving OTIF
If you would like some ideas on how to improve your business’ on time delivery performance then download our free report. The report covers seven common mistakes that businesses make, that stop them from delivering their products and services on time.
To receive the report please click here.