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Delay in vendor payments impacts OTIF
My last post covered how starting meetings on time has a positive impact on OTIF by instilling the keystone habit of discipline and honouring our commitments. After all, OTIF is a measure of how well we live up to the commitments made to our customers!
Another keystone habit that improves OTIF is paying vendors on their due date. If we notice frequent delays in vendor payments, it indicates laxity in honouring our stated commitments. Discipline of paying vendors on time has a ripple effect throughout the organisation. Teams know that we must honour our commitments.
Once this habit takes root, we have seen OTIF improve. It happens across organisations, across industries.
If you are on OTIF improvement journey, take the first steps of starting meetings on time and paying vendors on time as well.