OTIF | How do you define it?
Retail enthusiasts! Ran into an interesting article/topic. Nancy McCurdy, Anaplan Account Exec out of Dallas, TX, mentioned this article in LinkedIn. It's about the trouble with defining OTIF, or on time, in full. We all know how important this metric is, especially when measuring supplier performance, but how should it be defined? And, how would you handle it in Anaplan? Post your answers below. Here's some thoughts to get you started.
- On Time | If the receipt falls between two dates, presumably the retailer's requested delivery date, not the supplier's promised date. You can use an Boolean. It's a little early to convert this to an integer since we also need the next measure.
- In Full | If the receipt units exactly match the ordered units, it's the right product, and there are no damages then set the Boolean to True. Alternatively you can create another Boolean that checks if the entire purchase order was delivered in full. So, if you ordered 10 different items, then all 10 showed up in full to be compliant.
- OTIF | if both On Time and In Full are TRUE then OTIF is a 1 else 0. Sum the OTIF value and divide by the total number of ordered items, or if you're using the purchase order OTIF, then the total number of purchase orders.
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