{"id":187,"date":"2024-11-25T17:11:28","date_gmt":"2024-11-25T16:11:28","guid":{"rendered":"https:\/\/tenglerconsulting.com\/?p=187"},"modified":"2026-02-03T10:24:17","modified_gmt":"2026-02-03T09:24:17","slug":"otif-behind-the-scenes-it-is-not-just-about-numbers","status":"publish","type":"post","link":"https:\/\/tenglerconsulting.com\/en\/otif-behind-the-scenes-it-is-not-just-about-numbers\/","title":{"rendered":"OTIF \u2013 behind the scenes: it is not just about numbers!"},"content":{"rendered":"

[vc_row section_type=”fullwidth” height_ratio=”60″ padding_top_multiplier=”” padding_bottom_multiplier=”” rc_bg_type=”image” rc_bg_image=”2238″ columns_gap=”none”][vc_column][\/vc_column][\/vc_row][vc_row section_type=”fullwidth” padding_top_multiplier=”3x” padding_bottom_multiplier=”4x” columns_gap=”60″][vc_column width=”2\/3″]

OTIF \u2013 Behind the scenes: it is not just about numbers!<\/span><\/h1>
<\/div>[\/vc_column][vc_column width=”1\/3″][\/vc_column][\/vc_row][vc_row section_type=”fullwidth” padding_top_multiplier=”” padding_bottom_multiplier=”” columns_gap=”60″][vc_column]
<\/span><\/div>[\/vc_column][\/vc_row][vc_row section_type=”fullwidth” padding_top_multiplier=”3x” padding_bottom_multiplier=”2x” columns_gap=”60″][vc_column width=”1\/3″][vc_column_text css=”” text_style=”small-text”]01<\/span>[\/vc_column_text]

OTIF – a challenging KPI<\/span><\/h3>[\/vc_column][vc_column width=”2\/3″][vc_column_text css=””]How do you track your delivery performance OTIF (on time in full) towards your clients? Do you rely on external data or are you doing the \u201cdirty work” to keep your KPIs (key performance indicators) unbiased, relevant, and accurate? OTIF is one of those KPIs which at first seem like an easy enough indicator to track. But after you start the implementation, the real challenge arises. As you will understand, OTIF is not just a number you set as a target without proper consideration. Each company has different standards and therefore must set different targets.<\/p>\n

Take Walmart as an example: Setting unrealistic targets will not solve your problem. Hence, they reduced their requirements towards their suppliers from 98% OTIF to 90% on time and 95% in full in 2024.[1] This is a significant reduction in their performance requirements. What else should I consider besides setting a realistic target which aligns with my strategy?[\/vc_column_text][\/vc_column][vc_column][\/vc_column][vc_column][\/vc_column][vc_column][\/vc_column][\/vc_row][vc_row section_type=”fullwidth” padding_bottom_multiplier=”2x” columns_gap=”60″][vc_column width=”1\/3″][vc_column_text css=”” text_style=”small-text”]02<\/span>[\/vc_column_text]

What are other barriers to expect?<\/span><\/h3>[\/vc_column][vc_column width=”2\/3″][vc_column_text css=””]The first big barrier is data availability. Do you have the data needed? Are these data verified and reviewed? Who is providing these data? It is crucial to align internally on the \u201csource of truth\u201d and base your KPI calculations on this. Otherwise, the results will not be usable. Moreover, before implementing OTIF, all employees must be trained for this transition. It is critical to understand what impact incorrect data would have on the OTIF performance. In other words, data which are the source of KPIs have to be labelled as \u201chandle with care\u201d.<\/p>\n

During the implementation you will understand the importance of proper communication and you will see that implementing a KPI is not just about having the correct numbers. It is also about proper information flow, proper collaboration and about creating the right cross-functional team for this task. Be prepared to react to errors and problems – even at a later stage and possibly while evaluating the first data.<\/p>\n

It is not about having a KPI at the end of the month. By using OTIF correctly you can identify bottlenecks and paint points throughout your supply chain and pinpoint the areas for improvement. Evaluating the information correctly will provide you with valuable insights concerning your performance.[\/vc_column_text][\/vc_column][\/vc_row][vc_row section_type=”fullwidth” padding_bottom_multiplier=”2x” columns_gap=”60″][vc_column width=”1\/3″][vc_column_text css=”” text_style=”small-text”]03<\/span>[\/vc_column_text]

Conclusion<\/span><\/h3>[\/vc_column][vc_column width=”2\/3″][vc_column_text css=””]Ultimately, the learnings during an OTIF implementation extend beyond just achieving on-time and in-full deliveries. It cultivates your company\u2019s culture to be more agile, adaptable, and customer-centered, driving long-term success and competitiveness in the market. If you do not know how well you perform, how can you compare yourself with your competitors?<\/p>\n

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Source:<\/strong>
\n[1] S. Banker, Forbes, 2024. Walmart lowers its shipping requirements but suppliers still struggle<\/a>. [Accessed: 4 April 2024].[\/vc_column_text][\/vc_column][\/vc_row][vc_row section_type=”fullwidth” padding_bottom_multiplier=”3x” rc_link_color=”primary-1″ rc_link_hover_color=”black” columns_gap=”60″][vc_column width=”1\/3″][vc_column_text css=”” text_style=”small-text”]04<\/span>[\/vc_column_text]

Further insights<\/span><\/h3>[\/vc_column][vc_column width=”2\/3″][vc_column_text css=””]For more information on improving service levels to customers, please also take a look at our other insights<\/a>.[\/vc_column_text][\/vc_column][\/vc_row][vc_section disable_element=”yes” el_id=”author”][vc_row section_type=”fullwidth” padding_top_multiplier=”” padding_bottom_multiplier=”” columns_gap=”60″][vc_column]
<\/span><\/div>[\/vc_column][\/vc_row][vc_row section_type=”fullwidth” padding_top_multiplier=”3x” padding_bottom_multiplier=”3x” columns_gap=”60″ equal_column_height=”equal”][vc_column width=”1\/3″ full_height=”yes”]
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\"\"<\/div><\/div>\t<\/div>\r\n\t<\/div>\r\n<\/div>\r\n[\/vc_column][vc_column width=”2\/3″ full_height=”yes”][vc_row_inner height_ratio=”50″][vc_column_inner full_height=”yes”][vc_column_text css=”” el_class=”special-link”]Ready to strengthen your supply chain\u2019s sustainability through a stronger integration?<\/strong> Contact us at office@tenglerconsulting.com<\/a> to discuss how we can develop a planning framework\u2014supporting sustainable, efficient, and resilient supply chain practices made to your business needs.[\/vc_column_text][\/vc_column_inner][\/vc_row_inner][vc_row_inner height_ratio=”50″][vc_column_inner vertical_content_position=”bottom” full_height=”yes”][vc_column_text css=”” text_style=”small-text”]About the author<\/strong>[\/vc_column_text]
<\/div>

Daria Reshetniak<\/span><\/h3>[vc_column_text css=””]T: +43 1 234 56 78
\nE: daria.reshetniak@tenglerconsulting.com<\/a>[\/vc_column_text][\/vc_column_inner][\/vc_row_inner][\/vc_column][\/vc_row][\/vc_section][vc_section el_id=”contact”][vc_row section_type=”fullwidth” padding_top_multiplier=”” padding_bottom_multiplier=”” columns_gap=”60″][vc_column]
<\/span><\/div>[\/vc_column][\/vc_row][vc_row section_type=”fullwidth” padding_top_multiplier=”3x” columns_gap=”60″][vc_column width=”3\/4″]

Do want to measure OTIF but you don’t know how to start? Don\u2019t hesitate to get in touch with our team! Contact us at office@tenglerconsulting.com<\/a> or connect with us on LinkedIn<\/a>.<\/span><\/h3>[\/vc_column][vc_column width=”1\/4″][\/vc_column][\/vc_row][\/vc_section]<\/p>\n<\/div>","protected":false},"excerpt":{"rendered":"

OTIF (on time in full) is a the most important KPI for measuring delivery performance. While the formula for OTIF is straightforward, challenges arise during its implementation. Read here to discover what, in our view, should be considered when introducing OTIF.<\/p>\n","protected":false},"author":5,"featured_media":2238,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[36,35],"tags":[],"class_list":["post-187","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-02-planning","category-03-supply-chain-excellence","grve-entry-item","grve-blog-item"],"yoast_head":"\nOTIF best practice | Tengler Consulting<\/title>\n<meta name=\"description\" content=\"OTIF best practice - that's what implementation is all about.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/tenglerconsulting.com\/en\/otif-behind-the-scenes-it-is-not-just-about-numbers\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"OTIF best practice | Tengler Consulting\" \/>\n<meta property=\"og:description\" content=\"OTIF best practice - 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