Pulse Platform and On Time In Full
Delivering On Time in Full
Improving the bottom line by improving process execution is high on most companies’ agendas.
Delivering-On-Time-In-full (DOTIF) means getting the right stuff to the right place at the right time, to the correct location at the client’s site, in the right condition with the proper invoice, all of the time.
Getting these elements right first time, will drive down the cost and will improve customer satisfaction.
A proven way to enable your organisation’s improvement on execution is to measure your Delivering-On-Time-In-Full (DOTIF) performance.
The ‘Delivering-On-Time’ part of DOTIF is the commitment your business has promised to the client.
Whether it was to deliver ‘first out’, ‘before noon’ or simply ‘on Thursday’, whatever commitment this should be the measurement.
If you delivered when you said you would, then you are ‘On-Time’.
‘In-Full’ is a distinct metric. For example, a builder won’t rate your in full performance at 90% if he only receives 90% of the bricks he required.
If the delivery has a missing item(s) or service element(s) for whatever reason, it can’t be counted as arriving ‘In-Full’.
If there’s a back order or a product substitution, the order is not ‘In-Full’.
If you have pulled material from another location, the order is not In-Full.
If you had to use material from another supplier and delivered that instead, it’s still not In-Full, regardless of whether the customer notices or not.
While substituting one product for a similar one might not seem like a big deal, it is! It highlights a weakness in your purchasing/inventory management system.
Or, maybe the order was unusually large, and inventory levels were insufficient.
If so, the communication between sales and purchasing isn’t efficient enough.
The great thing about DOTIF is it measures so much more than delivery success; it makes you aware of the full order process, tracing the pattern from order creation all the way to the delivery drop off.
Order entries have to be inputted correctly into your system; inventory levels have to be maintained, materials/goods have to be handled/pulled correctly, loading has to successfully confirmed.
It is a health check for your whole organisation. It examines all elements to make sure they are working correctly, enabling it to operate to its full capacity and ensuring complete customer satisfaction.
The highest value in measuring DOTIF is that it allows you to see at a glance how the company is doing. Drilling down into why DOTIF is moving up and down displays problems in the company.
So, initially it might seem like an overwhelming task, but we have compiled a list to give you a helping hand when it comes to trying to measure DOTIF.
1. A delivery day and time must be with the order. You may need to educate or coach your sales staff on what acceptable commitments are (e.g. first out Wednesday) and are not (e.g. as soon as we can).
2. Track performance on your order. Your planning systems may be able to automate this especially if you are using a solution similar to Proof of Delivery (EPOD) and GPS satellite navigation system
3. Ensure you record why the order wasn’t shipped on time or in full. Reason codes could be noted on each time missing from the customer’s order.
Typical codes include: incorrect receiving, don’t have a product, vendor shipped late; product damaged; out of stock. Including reason codes enable management to drill down effectively to problem areas.
4. Solve problems as they arise. For example, if your on-time percentages start falling, you might find the issue is Sales are making unrealistic delivery commitments.
Maybe it’s time to make a system fix? The solution is to provide visibility for Sales on delivery slots, so they know, or they can check what is available at any given time.
Maybe it’s the visibility, and organising cut off times (orders in by 11 am for same day & 3 pm for next day delivery).
The point we are trying to make is, whatever solution you go for, employees from several departments are now involved in solving a problem that affects them all.
5. The data gathering process can take a while at first but with a little practice, the time it takes to track OTIF should reduce.
6. Since OTIF is an at-a-glance metric, management can see easily how the company is performing. Details driving the performance are there when needed.
7. The team at 121 Systems has designed and supply various truly integrated solutions that link processes relating to the order delivery process together.
Using these solutions like the Pulse Platform enables transport, warehousing, stock control, accounts and customer service to read from the same hymn sheet and efficiently coordinate the order delivery process together, in your supply chain.
DOTIF can be easily measured and achieved.
Permanent performance improvements require you to strengthen your underlying systems.
That means finding and implementing permanent fixes, not short-term stopgaps.
For example, substituting one product for another is a short-term solution; you’ll see the situation repeated over and over again.
It will also mean you continually let your customers down too. And, you will continue to incur additional costs.
It’s in the interest of all to take a hard look at what was insufficient in the system that caused the failure.
Then make the process changes, system changes or investment in suitable software to secure a permanent fix.
Remember it’s about the customer experience, which supports recurring revenue.
Contact us now, and you will be able to Deliver on time in full, today and beyond