Your customers are the retailers selling your product. You thought the updated version of your popular product would bring greater foot traffic into their stores and make them happy. The updated version has an eye-catching look plus all the enhanced features consumers have asked for. It’s also competitively priced. But the last time your customer satisfaction numbers were this low, sales started to fall.
If the product meets consumer expectations, what else is driving the decrease in customer satisfaction?
As you analyze the possible causes for your customers’ reactions, you notice a drop in on-time and in-full (OTIF) deliveries. You call the warehouse, which confirms that for a variety of reasons, deliveries have not been dispatched or have arrived late.
You understand now that your customers feel unheard and dissatisfied bebecause they aren't getting what they ordered. Worse, shoppers are dissatisfied, too. You see this happen frequently with shoppers who want unavailable products. For example, a major producer of consumer electronics recently saw customer satisfaction ratings fall when the launch of a new product caused longer shipping times for all its products.
You need to address your company’s issue right away. You decide to look at the whole order-to-deliver process to determine how to make improvements throughout the value chain, so you investigate:
- Whether OTIF can be used as an overall order-to-deliver key performance indicator (KPI).
- Whether you can use performance levers to help identify key OTIF improvements.
- How you can boost OTIF performance through various business functions.
Delivery is just one factor in the overall order-to-deliver process. How can you show your manager that OTIF is useful as an overall order-to-deliver KPI? How can you engage more functions in the order-to-deliver process to take part in improving OTIF? What levers can boost supply chain performance across business functions? These are all things your team must consider when implementing an OTIF strategy.
I already know what some of you are thinking: "I'm not in Supply Chain, so OTIF doesn't apply to me." OTIF scores are permeating all aspects of businesses and beneficial meetings can be quickly derailed if buyers aren't pleased with your OTIF score. Address this head on and watch your customer satisfaction soar.
Want to learn more?
The Accenture Academy course Recognizing How to Optimize On-Time, In-Full (OTIF) can help you improve OTIF to use it more holistically as a shared business function KPI in the order-to-deliver process. Improving product availability and delivering more orders OTIF can help you deliver on your promises to your customers as a key component for improving overall customer satisfaction.