Consumer goods manufacturers need to reduce or even eliminate on time in full (OTIF) penalties but it can be a daunting task because of the complexity in identifying where voids and inefficiencies exist. Looking at history only tells you what’s happened in the past. Our solution for perfect order fulfilment and OTIF compliance goes well beyond a look in the rear view mirror. It is a problem solving solution that enables rapid identification of risks and bottlenecks by leveraging proven predictive Machine Learning (ML) models to drive operational improvements.
Powered by SAP Leonardo, Mindtree’s OTIF solution (MOTIF) is a cloud-based platform. Our machine learning engine has pre built algorithms that will run right time analytics to flag risks while there is still time to take corrective action. We achieve this using SAP S/4HANA and SAP Analytics Cloud. MOTIF tracks deliveries and identifies voids from the moment an order is received to the time of purchase at the store. This gives you clear insight, enabling you to identify where bottlenecks exist in the entire chain and go further by understanding how it affects on-shelf availability.
Our machine learning models have been developed and fine-tuned to address each step in the chain so you get the results you need for continuous improvement. We harness the data from SAP S/4HANA and use SAP Analytics Cloud's rich reporting and application capabilities to deliver the solution. We use data from the past, the present and use machine learning to enable automated decision making through SAP innovation; reducing penalties or eliminating them altogether. MOTIF will help you make the best decisions based on carrier selection and help predict the best carrier to choose based on need.
The business need for MOTIF is simple: to reduce penalties and fines - and that’s just the beginning. Walmart was the first to implement financial penalties for suppliers who fail to meet on-time and in-full (OTIF) delivery goals. Many other retailers are now following Walmart’s lead in the quest to reduce out-of-stocks (OOS). However, the OTIF penalty is not the total cost of problematic deliveries. The actual cost of OTIF is the penalty + lost sales when the product is not on the shelf.
Why penalize suppliers who do their best to ensure high on-shelf availability (OSA)? Consumers are demanding that retailers make more product available at all points of purchase or risk consumers going elsewhere to buy desired product preferences. 100% OSA is the goal. Perfect order fulfillment has always been essential to the success of consumer goods manufacturers. In today’s environment, it’s taken on an even greater role now that suppliers are penalized for strict OTIF goals set by the retailer.
Understanding where bottlenecks occur from the time an order is placed to the time it reaches the retailer distribution center is essential to improving OTIF scores. Our SAP machine learning engine identifies patterns and potential inefficiencies each step in the logistics and the delivery process. We call it ‘Track & Trace’. Here’s an example:
MOTIF is near real-time, so we can catch and fix issues before they become costly penalties and lost sales. Feel free to contact us to see how we can turn your data into a money maker for your business using MOTIF. In order to reduce penalties and retain loyal customers, consider what MOTIF can do for you.
Want to learn more about MOTIF? See our latest content below:
- MOTIF (Multi-Retailer On-Time In-Full)
- MOTIF Whitepaper - On-Time In-Full (OTIF) Guidelines for Mutual Success
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