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Following Guidelines for HIPAA Compliant Solutions

 

Keeping track of key performance indicators is a great method to evaluate how well your ecommerce fulfilment is doing. OTIF (on time and in full) is an important eCommerce KPI. Your OTIF rate might reveal issues with your pick and pack operations, allowing you to address them. Low OTIF figures on a regular basis are generally a sign that it's time to change fulfilment firms.

Here's all you need to know about it.

Definition of OTIF

OTIF is a proportion of your orders that are delivered on time and in full. Let's dive into the two components of this measure.

On-time shipping

On-time delivery refers to delivering within the time frame you've specified to your consumers. Customers' perceptions of on-time delivery, however, may differ from your definition.

Let's say a consumer orders on the 10th of the month and selects standard shipping with a three- to five-day delivery window. The client anticipates receiving their item between the 13th and the 15th of the month, or maybe a day or two later if there is a weekend in between. If your fulfilment warehouse takes several days to process an order and shipping takes five days, the client will not believe their delivery arrived on time.

Warehouse location and shipment delays are two more factors that impact delivery time. Your shipments will have to pass through multiple shipping zones to reach certain clients if you ship from a fulfilment centre on the coast, possibly near a port city. Customers may perceive long travel durations as late delivery.

Naturally, at times the items delay in transit. You and your 3PL have little influence over this, however your fulfilment business may be able to offer different delivery choices if carrier capacity issues emerge.

Delivering the entire order

You include all of the products that the consumer bought in a "in full" order. So, this includes the order's right products, colours, and sizes

Picking errors cause orders to fail the OTIF metric. You cannot overstate the importance of the customer experience. For example, you may fill the order completely, but owing to backordered SKUs or poor inventory allocation among warehouses, items arrive in various shipments on different days. Even if the remainder of the things arrive soon after, the consumer may feel they did not receive their entire purchase when the first delivery arrives.

Only orders that match both of these criteria can you mark as complete and on time. To keep up with the OTIF rate, contact Spectra.

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