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Author: Sumeet Mahajan |03/13/19

Tackling the Order Fulfilment Challenge Head-On with OTIF Delivery

“Gaining valuable insight into the supply chain is crucial to mitigating costly hiccups. With the right solution, suppliers can proactively identify risks, optimize their delivery processes and move towards perfect order fulfillment.”

Monitoring and controlling the end-to-end supply and delivery chain is a major challenge for consumer packaged goods (CPG) companies. A comprehensive view of the current status of the supply network is critical to ensuring on-shelf availability and reducing out-of-stock. At the same time, as the industry moves toward greater accountability, retailers increasingly hold suppliers to account for On-Time and In-Full (OTIF) delivery. Walmart and other large retailers are already implementing penalty systems for failure to comply with promised delivery schedules. Jarrod Davis, Director of Marketing and Communication at 8th & Walton, shared how recent updates to the policy will continue to impact suppliers.

Improving OTIF scorecard performance can have a big impact on profitability and help organizations meet or exceed the prescribed retailer standards, including adhering to multiple steps and working with several partners. What CPG companies need is a solution to proactively address the challenge and boost OTIF scores - a solution that not only helps drive insights from historical trends but also predicts OTIF scores for the upcoming weeks, identifies which orders are most likely to fail and recommends timely and specific corrective action.

Mindtree’s OTIF (MOTIF) is a cutting-edge predictive solution that helps customers with rapid identification and prioritization of potential risks and root causes. It proactively improves OTIF scores through supply chain optimization. The solution’s machine learning algorithms iteratively query data through constraint-based modeling to find the core set of factors with the greatest predictive accuracy. They also help find new patterns in supply chain data on a daily basis, without the need for manual intervention.

MOTIF supply chain

In addition, MOTIF identifies key factors affecting compliance related to carrier, equipment availability, warehouse and lane traffic; or other reasons beyond the company’s control such as transit delays. These can then be incorporated into the continuous improvement process.

At Mindtree, we help customers not only with a plug and play solution but also identify customer-specific opportunities to drive efficiencies and cost savings along the way. The MOTIF solution provides rapid ROI by helping retailers avoid steep penalties and enabling competitive advantage through continued cost savings.

For more on our CPG capabilities and offerings, click here.

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