On-time in-full (OTIF), the metric employed by the nation’s largest retailer to rate vendor conformance to purchase orders, is the best-known scorecard among food manufacturers. In short, the goal of OTIF is to assure product availability on the shelf with minimal safety inventory. Prior to the 2017 roll out of OTIF, suppliers were given a four-day delivery window known as MABD (Must Arrive By Date). MABD was replaced by a much stricter, and more difficult to achieve, OTIF. Those metrics have since changed, separating the on-time metric from the in-full metric, and allowing shipments to arrive one day early.
OTIF metrics have goals assigned to the type of merchandise and the shipment. Tracking these separately is intended to help suppliers identify issues more accurately.
Suppliers that fall below these goals may be required to submit an “OTIF Action Plan.” Suppliers are required to document the steps they intended to take to bring their performance up to OTIF standards. If improvements are not realized, the relationship stands to be called into further review and possible termination.
When Hanson Logistics launched Velocities Multi-Vendor Consolidation in 2012, the handwriting was on the wall. Our goal was to provide a means for frozen food manufacturers to share a scheduled truckload and thereby reduce costly LTL charges often incurred when meeting their customers’ growing requirements for store-specific POs and appointments.
Today, after seven years of Velocities operations, Velocities has a proven record, a published sailing schedule and top-performing refrigerated truck fleet. The program serves as a go-between the high-volume production necessary for profitable food processing operations. And the more intensive case pick, appointment-driven fulfillment of OTIF or similar programs. Hanson customers can serve their larger receivers with efficient truckload from their facilities while Velocities receives and fills smaller orders with consolidated loads into different regional DCs.
It’s also worth noting that Velocities shipments picked from available inventory at our Chicago Consolidation Center average higher that 98% on-time and virtually 100% in-full.
Our proven workflow makes it easier for your business to achieve higher OTIF scoring. You benefit from our expertise from Day One. As part of Hanson Logistics’ fulfillment services, we provide OTIF-focused support to ensure that your frozen foods arrive at the designated center (DC) within the required window with the case accuracy. Our Velocities Multi-Vendor Consolidation Program serves more than 100 DCs on a scheduled, weekly basis. If you have questions or are ready to learn how to take the next step for a stronger OTIF score, contact a Hanson Logistics professional. We’ll help you find the best path to improving OTIF with all your other retail partners.
Hanson has much greater access to carrier capacity and can give us better visibility across the supply chain, Day-to-day, they interface with our customer service to build optimum loads, while managing both inbound and outbound. Long-term, they are mapping out the most responsive and cost-effective fulfillment process. This allows us to focus on our core competency, as a leading brand in bread and bakery products.