Long-term customer satisfaction is a top priority for businesses today. And Delivery OTIF (On-Time In Full) achieves this by developing reliability for customers. By regularly monitoring and analysing OTIF metrics, businesses can gain valuable insights to determine areas that require improvement. The process starts with thorough data collection, including order specifics, delivery schedules, and fulfilment metrics. Businesses then engage in regular analysis of OTIF metrics compared to predetermined benchmarks to identify areas requiring enhancement. Subsequently, a root cause analysis is conducted, delving deep to reveal the core issues responsible for delays or inaccuracies. Armed with the insights, businesses can make precision-focused improvements, optimising processes and providing essential OTIF metric training where needed.
This article will highlight the key elements that demonstrate how Delivery OTIF impacts businesses, ensuring a better delivery outcome. Read on to find out more.
1. Reliability and Trust
In the business-to-business (B2B) world, reliable suppliers foster trust and credibility with businesses by consistently delivering products or services as agreed. FairPrice Group Supply Chain (FPGSC), the supply chain arm of Singapore’s largest supermarket operator, showcased a strength in Delivery OTIF, prioritising a high track record of on-time delivery. For instance, a strong fleet supported by transport management systems allows for route planning optimisation, on top of monitoring real-time delivery status for a smooth Delivery OTIF performance. Delivery OTIF plays a crucial role in establishing long-term partnerships over short-term transactions, by providing greater reliability as shown below:
- Fulfilling Orders Accurately
When the right quantity of products are consistently delivered according to order specifications, errors and discrepancies are reduced. Businesses can trust that what they receive is in line with their orders handed over to GLS, minimising the need for time-consuming and costly corrections.
(i) Accurate Order Drops
Within the broader scope of OTIF, accurate order drops are a vital component. This encompasses the meticulous receiving of customer orders by FPGSC, laying a solid foundation for a successful fulfilment process. The timely receipt of customer orders within system interfaces by FPGSC, driven by data insights, serves to minimise documentation errors and further strengthens the groundwork for a successful fulfilment process.
(ii) Effective Inventory Management
Effective inventory management hinges on maintaining accurate product and SKU counts in stock. Complemented with robust inventory management systems and software, the tracking process of product quantities and stock levels is simplified. Additionally, leveraging historical sales data and market trends ensures more accurate demand forecasting.
(iii) Efficient Order Pickup
Upon ensuring accurate orders and effective inventory management, the next critical step is efficient order picking. This often entails the implementation of streamlined picking techniques, strategically organising products for quick retrieval within specified time frames. FPGSC utilises technology and automation like ErgoPall and RapidPick to further enhance their operational efficiency. ErgoPall optimises for high pallet density at lower transport costs, while RapidPick provides a robust picking solution with high speed and durability.
- Predictable Supply Chain
A reliable supply chain serves as the foundation for effective production planning, precise inventory management, and timely customer order fulfilment. Under the broader OTIF framework, the precise recording of customer orders, referred to as accurate order drops, acts as the initial step for successful order fulfilment. Effective inventory management, relying on accurate product and SKU counts and optimised upstream processes, further enhances overall supply chain reliability.
- Reduced Uncertainty
Inconsistent deliveries may disrupt a business’s supply chain. When this occurs, businesses are forced to implement contingency plans, responding to potential stockouts. With Delivery OTIF by FPGSC, this uncertainty can be mitigated, instilling greater confidence in businesses to operate continuously.
2. Meeting Customer Expectations
Delivery OTIF ensures consistent shipment of necessary products within a scheduled time period, enabling businesses to showcase a commitment to customer service and set expectations during the purchasing process. Timely and complete deliveries are attributable to reliable distribution and logistics services. FairPrice Group Supply Chain (FPGSC), the supply chain arm of Singapore’s largest supermarket operator, showcased a strength in Delivery OTIF, prioritising a high track record of on-time delivery. For instance, a strong fleet supported by transport management systems allows for route planning optimisation, on top of monitoring real-time delivery status for a smooth Delivery OTIF performance.
3. Full-scale Logistics
With over 30 years of experience in the industry, FPGSC offers comprehensive logistics services, seamlessly integrating data analytics to bolster OTIF metrics. This commitment to delivering products on time and in their entirety serves as a proactive measure to mitigate potential operational hurdles.
- Transport Management System
At FPGSC, various management systems and software including transportation management systems (TMS) are adopted to alert drivers of real-time traffic conditions, making optimum route planning possible. Complemented with precise fleet location tracking and timely delivery status updates, FPGSC enhances the visibility to promote operational excellence.
- Proactive Problem-solving
Frequent supplier delivery failures often compel businesses to resort to placing last-minute orders as a remedy for delays and incomplete deliveries. These orders incur additional charges, encompassing elevated overall costs, potentially eating into profit margins. FPGSC’s reliable OTIF deliveries in TMS collaborates closely with businesses to enhance their supply chain operations, on top of identifying and resolving supply chain bottlenecks and disruptions in advance.
4. Competitive Advantage
Having a competitive advantage distinguishes a business from competitors. A key differentiator that sets businesses apart is the ability to maintain superior Delivery OTIF performance. This advantage is especially critical for businesses operating in customer-centric markets. Capable of handling a wide range of food items across temperate ranges, FPGSC provides Delivery OTIF for fresh groceries like vegetables, fruits, frozen meat, and more. With robust infrastructure for temperature-controlled storage, including an industrially-certified distribution centre, FPGSC has the ability to provide end-to-end services from arrival of incoming shipments, warehousing inventory management to last mile delivery directly to businesses.
Achieving OTIF delivery excellence plays an important role in improving customer satisfaction and retention, and fostering long-term success and sustained growth. Backed by technology, optimisation strategies, and proactive measures, FPGSC’s holistic approach to OTIF deliveries revolves around a comprehensive strategy that encompasses various aspects. This includes not only optimising inventory management, refining demand forecasting, and streamlining transportation routes, but also fostering strong supplier relationships and continually adapting to changing market dynamics. By addressing these facets, FPGSC ensures that businesses have a resilient and agile supply chain that consistently meets OTIF objectives. The commitment to OTIF excellence serves as a vital measure of FPGSC’s dedication to meeting and exceeding the needs of businesses, all while enhancing internal processes for the benefit of all stakeholders.
With a dynamic approach that encompasses retail outlets and online ventures, FPGSC’s mission is crystal clear: to elevate operational efficiency to new heights. If you’re seeking additional information, please don’t hesitate to get in touch.