After calculating the fill rate in a company's logistics, there are several aspects to take into account, not only the staff and resources that are responsible for the final transport of the goods:
Product availability : It is important that when the user makes a certain order, there is stock of the items being purchased at the time the purchase is made. This first point is crucial.
Operation of the purchasing chain : From when the order is registered until the order is sent to the warehouse and the machinery is started to prepare the package, etc.
Shipping the items : Package ready, order being processed and it is time to load it onto the transport that will take it to its destination, by land, sea and/or air. This link in the chain is essential. Once at the destination, if it is in another city or country, how is it managed through local partners and delivery people to get to the agreed delivery point.
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What is OTIF?
When addressing the aspects surrounding the term fill rate, we hong kong whatsapp data must deal with another concept closely related to logistics and transport, with the final satisfaction in the shipment and receipt of goods. We are referring to ' On Time In Full '. Yes, the OTIF , an indicator that basically wants to account for the delivery of correct products at the agreed time: On Time, which refers to the punctuality of the shipment; In Full, if everything is correct, if in addition to the package arriving on the scheduled day and time, the item meets the characteristics that were agreed with the consumer.
Both OTIF and FR are very important indices in the sector. To improve the distribution system, these two must be taken into account and thus detect whether incidents are occurring that affect the quality of the service provided to the customer.
We are dealing with similar but not identical concepts. There are certain differences when establishing an otif vs fill rate relationship . We could highlight that both the first and the second allow a company to measure the level of satisfaction of a customer in relation to the fulfillment of the order that has been placed. Having said that, what makes one or the other indicator be talked about? What are the differences between the fill rate and the otif ?
FR focuses on the number of products that have been delivered correctly.
OTIF focuses on the punctuality of shipments, at the time of delivery.
In fill rate, products that arrive within a given period of time are counted as positive.
OTIF places special focus on the moment of delivery, whether it is within the period agreed with the user.
In conclusion, both concepts are essential in the field of logistics , as they are fundamental to improving service and achieving absolute satisfaction of the end customer.
Both concepts must be taken into account whether you are going to develop your professional career in this sector or if you have decided to specialize in another type of business. E-commerce is a perfect example of this, as it requires compliance with delivery deadlines and meticulousness when managing packages and shipments to obtain consumer satisfaction and loyalty. Here, knowing what the fill rate and OTIF are , among others, becomes very important. That is why specific training such as the Master in Supply Chain Management & Logistics from EAE Barcelona will train you in the knowledge of these and other key concepts for the performance of an activity.
Professionals with a different perspective on the future who want to lead a company and access senior management must know these concepts if they are dedicated to activities in which logistics and transport are an important part of the company's success. The Master in Project Management provides these technical profiles with tools and trains them in these aspects, among others.
In a changing labour market, it is essential that students have access to up-to-date content and are comprehensively trained in everything involved in the management of a large organisation.