How to explain OTIF to your 5-year-old

SHARE
Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn

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. Failing to fulfill your orders within the designated delivery dates, and with all of the ordered items, can result in costly fees. 

Ever wondered how you could explain OTIF using eggs?

Check out this infographic, which explains the complexities of Walmart’s compliance program (like you described it to a five-year-old).

OTIF Explained Infographic

Stay tuned for Part 2, where we break down why OTIF is important and how it is measured. Fill out your email below to stay up to date on the next article  👇

Otif Part 3

Improving OTIF Performance

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.

Read More »

Why is OTIF Important?

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!

Read More »

How to explain OTIF to your 5-year-old

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.

Read More »

Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn

Contact us

Drop your information in our handy form, including a brief message of what you’re looking for, and one of our sales experts will get back to you as soon as possible!

Headquarters

3739 N Steele Blvd,
Ste 300
Fayetteville, AR 72703
479-385-7472

Seattle Office

1700 Seventh Ave,
Ste 2100
Seattle, WA 98101