Struggling with OTIF (On-time, In-full) penalties?

Here's how you can minimize or even avoid OTIF fines:

To dodge penalties for tardiness, punctual shipping is a must – the "OT" in OTIF.

Most transporters and drivers aim for timely deliveries. Industry insights reveal that when cargo is prepped on time, the likelihood of a delay falls below 20%.

A primary reason for delays is the late preparation of shipments. About 80% of tardy deliveries weren't ready on time at the distribution center (DC).

Ensuring timely shipments involves accurate forecasting of DC activities and completing necessary tasks to synchronize the arrival of all shipment elements, such as case picking and receiving products, at the loading dock. Attention to detail is crucial. Timely shipments hinge on efficient coordination of tasks and resources:

- Prompt receipt of products to facilitate their placement in the picking area
- Allocation of labor for unloading, picking, and loading
- Utilization of equipment like forklifts
- Availability of dock doors and staging areas
- Availability of an empty trailer, which may require unloading a filled one for an outbound shipment

For warehouse managers, monitoring these activities and their interdependencies can be challenging. AutoScheduler.ai's AutoPilot feature ensures that tasks are sequenced properly and resources such as personnel, equipment, and dock doors are used effectively to guarantee on-time deliveries.

Ensuring complete product availability - The "IF" in OTIF

If inventory is present on-site, whether in a trailer, an annex, or the warehouse itself, it should be dispatched. AutoPilot by AutoScheduler.ai also facilitates the timely movement of inventory from different locations to ensure it's picked and loaded punctually.

However, inventory must be available. This is where supply planning plays a crucial role. Supply planning systems, however, can sometimes amplify demand fluctuations, leading to excessive inbound shipments that can overwhelm a site, causing spatial constraints or delays in receiving due to inventory being stuck in inaccessible trailers.

To maintain a steady influx of essential products to the DC, LevelLoad adjusts the output from supply planning systems using sophisticated algorithms, creating a balanced, executable, network-wide plan that prioritizes the delivery of essential products. As one VP of Supply Chain Planning stated, "LevelLoad enhances inventory variety and order fulfillment," while also cutting down on transportation costs by ensuring smoother flows along each route, allowing for the use of preferred transporters. "It saved us millions."

Discover more about LevelLoad and how it achieves OTIF