The on-time in-full (OTIF) metric is a good indicator of the general health of the supply chain. It measures the extent to which shipments are delivered to their destination according to the quantity and schedule specified on the order. It is normally calculated as:
Unfortunately, there is no standard definition of the components for OTIF, so the metric can mean different things to different people, which hinders effective communication between suppliers and biomanufacturers.
To bring some clarity and understanding to this area, BioPhorum has published OTIF Guidance (High Level). This provides an introduction and a high-level view of OTIF so that when we use the acronym, we know how it is calculated and are all using it in the same way.
Most people will know what OTIF means, but they might not necessarily know how it is calculated. The paper gets into some detail on the components of ‘Actual orders delivered’ and ‘Expected orders to be delivered.’ It talks about the information including actions to take and gives tips on how to best use each component.
Aimed at everyone involved in the supply chain, this paper will help improve clarity around OTIF in the industry, which will then help measure and improve performance – delivering what the patient needs when they need it.
OTIF is one of the tools in the supply chain performance toolbox to improve relationships and communication between biomanufacturers and suppliers. It is a great key performance indicator to use as a basis for collective understanding and establishing expectations and is one of the easier quantitative measures available.
Decreases in OTIF can be directly correlated to fluctuations in demand vs. forecast. This BioPhorum paper will help ensure that everything is open and transparent between suppliers and customers, which will positively impact how businesses meet or exceed end-user expectations.