What is replenishment? What does it mean to be out of stock? We answer these questions and more in part 1 of a series.
With the novel coronavirus (also known as COVID-19) creating disruptions in supply chains all over, we thought we’d discuss how this will affect your OTIF and Replenishment performances.
What is a demand plan? Demand planning tells you how much inventory you can expect to sell, down to the regional level. Armed with point-of-sales data, knowledge of inventory issues,…
Making sure you are compliant with OTIF requirements can be tricky. You'll need to do in-depth analysis into potential issues, such as warehouse issues and carrier delays. The various silos of your organization must interact with each other to ensure full compliance and prevent future chargebacks from happening.
Not complying with your purchasers' OTIF requirements can be very costly, and result in hefty fines. For example, Walmart fines its vendors 3% of the cost of goods sold if the order fails OTIF requirements. In 2016, Target stores increased their OTIF penalties to 5% of the order cost, five times what it previously was. That kind of money adds up!
OTIF stands for On Time In Full and is a key performance indicator (KPI) of your products' supply chain. OTIF is a crucial measurement of how well your operations team fulfills your orders according to the requirements of your customers.