Post by jiniya123 on Jan 6, 2024 6:01:40 GMT
The acronym refers to the expression On-Time and Complete, which is a performance indicator that measures the effectiveness of a company's logistics services. This indicator describes the percentage of orders that have been successfully processed, i.e. have the requested product and quantity and meet the delivery conditions agreed with the customer. This logistics is expressed as a numerical percentage. A low quality index for the logistics services a company provides to customers or receives from suppliers can mean errors in the order preparation or shipping process. What it means is a supply chain performance metric used to evaluate a supplier's ability to fulfill its delivery commitments, i.e. deliver the required product to the right location in the required quantity within the agreed upon timeframe.
As noted in McKinsey’s analysis of the complete definition of on-time in the consumer space, on-time is measured as the extent to which goods are delivered to their destination according to the quantities and schedule specified in the order. More and more companies ar Graphics Design Service e using metrics to monitor their logistics performance. The main reason for the success of this indicator is that unlike indicators such as on-time shipment or on-time performance, only those orders that meet both conditions are correctly completed and delivered on time, thus providing a complete vision of the company's logistics service quality.
The term is also abbreviated to Full On Time Delivery. company Walmart adopted this performance metric to identify the performance of its suppliers. Metrics designed to improve operations in Walmart stores and online sales channels penalize shipments that arrive early or late. Because the entry of e-commerce sales channels has forced Wal-Mart to change its distribution strategy from a four-day delivery window in the year to two-day delivery in the year and same-day delivery at the beginning of the year. The new conditions resulted in Walmart requiring full delivery times. Suppliers deliver goods.