Blog · Territory, capacity and quota planning · Supply chain
How a supply chain team turns receipt and purchase order data into an on-time-in-full figure per supplier per site, why the trend matters more than the level, the three-month rule that separates a bad month from a deteriorating supplier, and the watch list that goes to the category manager.
A supplier scorecard says 94 percent on-time-in-full and the category manager files it. The receiving team at one plant has been expediting that supplier's deliveries every week for two months. Both are right: the supplier is fine on average and failing at one site, and the average is the wrong number to look at. This guide sets out OTIF per supplier per site, the trend rule, and the watch list.
OTIF = PO lines received on time and in full ÷ PO lines due in the period
Per supplier, per site, per month. On time within a stated window; in full when received quantity equals ordered quantity, or within a stated tolerance.
Supplier and site identifiers only. The join is on PO and line.
Σ received quantity per PO line ≤ ordered quantity
Over-receipts fail it and are listed; they are usually a receiving error, and they would otherwise inflate in-full.
For each supplier-site:
| Signal | Rule |
|---|---|
| This month vs trailing three | Difference in points |
| Consecutive declines | Count of months OTIF fell from the prior month |
| Spend at risk | Purchase value at this supplier-site over the trailing three months |
Watch list: three consecutive declines, or a fall of more than a stated number of points in one month, ranked by spend at risk.
| Supplier | Site | OTIF now | Trailing 3 | Consecutive declines | Spend at risk |
|---|---|---|---|---|---|
| S-0217 | Plant B | 71% | 89% | 3 | $2.1m |
| S-0217 | Plant A | 96% | 95% | 0 | $3.4m |
| S-0442 | Plant C | 82% | 91% | 2 | $640,000 |
| S-0108 | Plant A | 88% | 97% | 1 | $1.9m |
Supplier S-0217 is at 94 percent overall and on the scorecard as green. At Plant B it has declined for three months and $2.1m of spend is behind it. That is the top line, and the category manager calls the supplier about Plant B specifically, which is a conversation the overall figure would never have prompted.
Supplier-level only. The problem averages away.
Due date taken from the request, not the confirmation. A supplier that confirmed a later date is marked late against a date it never agreed to. Use the confirmed date.
One bad month escalated. Noise. Three consecutive declines, or a large single fall, and not otherwise.
Spend at risk ignored. A small supplier with a terrible trend ranks above a large one with a worrying trend. Weight by spend.
Mapped once, PO lines and receipts produce OTIF at both levels, the trend signals and the ranked watch list every month. Covirage builds this from the exports as they are. The supply chain page describes the setup, and the single-source parts guide covers the concentration measures that sit beside this one.
Received on or before the confirmed due date, or within a stated tolerance window, say two days early to zero days late. State the window on the report and use the same one everywhere.
A supplier can be excellent at one site and failing at another, because the lanes, the carriers and the receiving teams differ. A supplier-level figure averages a problem away. Per site finds it; per supplier ranks it.
OTIF this month against the trailing three-month average, and the count of consecutive months of decline. Three consecutive declines from a stable base is the threshold for the watch list; one bad month is noise.