DIFOT And OTIF KPIs: One of the most important key performance indicators in supply chain management and logistics:
DIFOT and OTIF, both of these logistics KPIs are among the standard metrics and key performance indicators for reporting and managing performance in logistics and supply chain management. They measure in case the Supply Chain was in a position to deliver the anticipated product in quantity and quality that was ordered through the customer in the place agreed in the time required with preferences defined by the customer.
These logistics KPIs and supply chain metrics have advantage to track and measure the actual productivity of the entire logistics company in order to meet the customer expectations. To reach great performance each of the functions in the supply chain management need to work at the preferred level. The primary contribution of DIFOT and OTIF will be to allow seeing at a glance how the company supplies its clients.
Typically OTIF is tracked by taking in to account quantity of deliveries: OTIF % = quantity of deliveries OTIF divided by the total quantity of deliveries * 100
However it can likewise, based on companies be as well calculated based on the numbers of actual orders or quantity of order lines.
The requirements for OTIF rating are to have delivery day or this might be even time during the day like the exact hour and minutes for some logistics companies like FedEx or DHL.
In case the orders are typically split in the customer requirements then every delivery line should be taken into consideration in your logistics KPI excel dashboard reporting. Businesses that have set measure in the OTIF recognize the value of this KPI.
They quote amongst additional positive factors – the increase in the profit margin as a result of the reducing operating costs and much better inventory control and management. In addition they report sales growth as a result of increased customer satisfaction and due to a better product accessibility.