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Why is OTIF such an important measure?
I have often been asked why we emphasize on OTIF (On Time In Full) over other supply chain performance measures. If other measures of customer service like Line Fill Rate, Volume Fill Rate, Value Fill Rate are more discerning in terms of the impact on sales loss, shouldn’t we use them instead of OTIF?
It is true that each of these measures is useful and tells us a different story. However, only OTIF measures absolute trust and reliability. If the customer has ordered 20 different items in varying quantities and wants it delivered tomorrow, OTIF tells us whether we have lived up to her expectations. High scores on OTIF result in ‘peace of mind’ for the customer and she need not spend her time, effort and money in tracking or expediting.
Vendors with consistently high OTIF are preferred by their customers and end up with a higher share of business.