OTIF stands for "On-Time and In-Full". Leverage tracks this for each PO Line and aggregates the result by supplier and by item.
OTIF Eligibility
OTIF Eligibility refers to a PO Line that has the ability to be evaluated for OTIF. This means that the opportunity for the supplier to make a PO Line On-Time and In-Full has passed.
A PO Line is considered Eligible if all of the following are true:
Its status is Finished or Delivered
AND the PO Line has a quantity and a due date.
Some lines may intentionally not have a quantity or a due date
OTIF Tolerance
Tolerance gives you the power to specify a range of values that you want to consider to be On-Time or In-Full. You can set up OTIF Tolerance by supplier via the supplier profile settings tab, or for the entire organization via settings.
Suppliers > Click on Supplier > Settings > OTIF Configuration:
Settings > Statistics > OTIF Configuration:
In-Full tolerance is measured in percentage. For example, if a PO Line has 100 ordered units, and the PO's supplier has a tolerance of +5% / -5%, then a delivered amount of 95-105 units will be considered In-Full
On-Time tolerance is measured in days. For example, if a PO Line has a promise date of March 13th, and the PO's supplier has an on-time tolerance of +2 day / -3 day, then the PO Line will be considered on-time if delivered between the days of March 10th and March 15th.
In addition to tolerance, you can optionally select different data sources that should go into the calculation of OTIF.
OTIF Calculation
A PO Line is considered to be OTIF if all of the following are true:
The PO Line is OTIF-eligible
The PO Line is On-Time
Leverage has three dates that it considers the "Intended Date". They are used in the following priority:
First Promise Date: The first promise date the supplier agreed to. If a change request comes in, this will NOT supersede this date.
If a PO Line does not have a recorded promise date from a supplier, we will fallback to the due date
Leverage has three dates that it considers the "Actual Date", depending on the due date type:
If the PO Line expects an "ex factory date", we don't have a way to track the actual ex factory date, so OTIF will not be calculated.
If the PO Line expects a receive-by date, we search through goods receipts, shipments, ASNs, and Shipment Tracking (in that order) to find the latest day when the entire quantity was delivered.
If the PO Line expects a ship date, we search through goods receipts, shipments, ASNs, and Shipment Tracking (in that order) to find the latest day when the entire quantity was shipped.
"On-Time" means that the PO Line's actual date is within tolerance of its intended date
The PO Line is In-Full
we search through goods receipts, shipments, ASNs, and Shipment Tracking (in that order) to find the actual quantity shipped.
"In-Full" means that the PO Line's shipped quantity is within tolerance of its intended quantity (the quantity on the order)
Need Additional Help?
If you encounter any issues, please contact our support team via our Help Desk or email us at support@tryleverage.ai.