OTIF: 15 Minutes Could Save You $15 Million!

Who doesn’t love putting their hands in a jacket pocket and finding an unexpected $20 bill? Now imagine what it would feel like if you did that with your supply chain operations–and instead you pulled out $15 million! Fully realizing on-time, in-full (OTIF) delivery goals might put you closer to that reality than you think, especially if you can put your hands directly on a customizable dashboard and your own early alert system. If you already know the value of $15 million, book 15 minutes with our CEO Cy Smith, and he’ll set your OTIF settings to “payback.” But if you still need some convincing, read on.

The 98%

You might have seen Wal-Mart’s OTIF memo last fall, the one telling suppliers to shift from their current 85% OTIF rate to 98%, or face a 3% fine based on load value. By putting the customer first, Wal-Mart put the supply chain on notice to make order fulfillment top priority, and the once-allowed two-day delay shifted to something more akin to two hours. It was a call to arms from the world’s largest retailer: the distribution center domino effect would no longer be allowed to trickle down to the store level. 

A lot of suppliers balked at the mandate, arguing that OTIF is a pipe dream, everyone’s running as lean as can be, there’s only so much blood you can squeeze from a turnip, etc., but the dirty truth is there really is a lot of money sitting on the shop floor, and ketteQ’s OTIF tools can help you put it back into your supply chain. Not only that, there’s a HUGE payoff for everyone when you have visibility into the potential roadblocks along every step in the chain. Imagine knowing as early as order placement that you don’t have the current inventory–having that bit of information handy seems like a no-brainer, and yet!


Why The Failures?! What if you could turn it around to Win The Future? If you had access to scenario planning with AI/ML and could hit the 98% every single time, wouldn’t that be the WTF you’d want to see? Because right now, you’re probably seeing some madness in the supply chain chain reaction, good or bad, OTIF is the result of hundreds of interconnected tasks and dependencies in the supply chain that start with forecasting demand and end with customer delivery. Any single issue, failure, or delay along the way can have far-reaching effects that cascade into catastrophe.

On top of that, defining the metric is tricky at best because there isn’t a firm consensus yet on some of the key details. Do you measure these two metrics together or separately? What does “on time” mean, exactly–and for whom? Is it “on time” if it meets the date requested by the retailer? Or the date promised by the manufacturer? Is it the shipping date? Depending on where you are in the chain, the answer could surprise you!

But regardless of who you are and where, connecting the dots and resolving problems before they occur isn’t as impossible as it might seem. The ketteQ solution works by first modeling all the connected data you could possibly have in different siloed systems–you know the ones, financial, demand planning, supply planning, order management, warehouse management, transportation management, and perhaps even CRM and marketing systems–and pulling them together into a single real-time view.

Then we use our hyper-automated, real-time data integration and analytics tool to give you the one ring to rule them all  source of truth into all your data inputs, meaning you’ll have 360-degree visibility to make instant right decisions. Imagine the following:

  • automated purchase and sales order tracking and fulfillment
  • real-time customer visibility to sales order status
  • time-based event tracking
  • dashboards for KPIs, trends, and predictions with instant alerts when a certain threshold or border is crossed

It’s that last one that’s especially helpful in the march beyond 98% OTIF, no matter how you define it, the instant knowledge that you need to do something right this instant to fix a potential future problem–two days down to two hours.

So if you’re ready to find your $15 million, schedule 15 minutes with our CEO Cy Smith today! 

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