Businesses specializing ins supply chain logistics and shipping have their plates full right now, especially when it comes to consumer demands for freight delivery in full on time. The ongoing effort and pressure to create resilient supply chains and guarantee on-time, in-full shipment deliveries are made all the more challenging by a dramatically changing and fluctuating environment. Implementing dedicated freight solutions can help improve overall delivery success rates.

As highlighted by McKinsey & Company, most shippers agree that the lack of a clearly defined industry standard for OTIF would improve overall successful delivery rates actress multiple niche markets and industries. “They noted that a standard definition would significantly reduce discrepancies and confusion and promote collaboration among trading partners. Collaboration would help partners resolve supply problems more efficiently and effectively—creating value for all supply-chain participants and consumers.” Shippers must prioritize customer expectations and services if they hope to survive this period of recovery and readjustment. Customers have begun shifting to pre-pandemic thoughts and demands concerning shipping services and on-time in-full (OTIF) deliveries. Refrigerated trucking companies that fail to meet these demands will suffer from the effects of disappointed customers, lost sales, and lower profits.

Freight shipment and delivery in full and on time has become the gold standard for shippers today, especially in the highly competitive and volatile market. In May 2022, a SupplyChainBrain article noted, “it’s no longer enough to know when your goods left the warehouse on the journey from A to B, or when they arrived. Shippers need total visibility of the flow of goods to make rapid and fluid operational decisions. Those that managed to achieve this over the past two years have been the ones that fared the best, reacting in near-real-time to disruptions.” With rising demand for scalability and adaptability, shippers who can tack packages and ensure on time in full delivery stand the best chance of succeeding in the market today. The many benefits of OTIF delivery and shipping best practices can be summarized as follows:

Improved Brand Image and Industry Reputation

Perhaps the most significant benefit shippers can gain from reliable, on-time, in-full delivery is an improved brand image among customers. Likewise, their industry reputation will also improve when they are known for successful delivery in full on time. These situations make it easier for shipping companies to draw in new customers, retain their current base, and network with carriers and 3PLS more effectively. These benefits are some of the most direct and impactful from successfully achieving on-time, in-full delivery KPIs. Streamlining processes and making everything easier comes as a natural byproduct of OTIF processes and goes a long way to improve brand image and shipper reputation to achieve better outcomes. 

Significantly Lower Risk of Returns and Refunds

Successful monitoring and delivery of on-time, in-full promises can help shippers lower the risk and frequency of returns. Express shipping and delivery services focus on getting customers what they want when they want. When things do not align with their needs, consumers wish for a refund or replacement as soon as possible. Logistics Management shows the frequency of returns has exploded in light of current market upheavals and rising demand for delivery in full on time. In 2020, the value of returns and overstocked goods was $643.9 billion, accounting for a staggering 3.1% of GDP, which would be much worse without high on-time in-full rates. Managing these risks to a more acceptable level greatly benefits OTIF delivery.

Better Carrier Relationships Across the Board

Another benefit that shipping companies can enjoy when on-time in full is the norm rather than the expectation for deliveries is improved relationships across the board. Shippers who can offer reliable delivery in full on time to their customers also have a better chance of forming positive relationships with carriers and other shippers. It is easy to see the connection between on-time, in-full delivery KPIs and overall improved industry relationships when OTIF delivery becomes the standard everyone is working towards achieving. And with improved carrier and freight broker relationships, shippers can more easily meet customer needs and market demands to maintain the highest level of OTIF delivery success. 

Lower Transportation Costs and Related Fees

Shipping and transportation rates remain a significant concern for those offering transportation services. When companies can provide on-time, in-full deliveries and when they perfect their personalized customer options to ensure delivery in full on time, rates and fees significantly decrease. Without long delays, excessive idle time, and slow response to delays, cargo gets to where it needs to go while costs remain minimal. Less fuel, more full deliveries, and more productive drivers lead to lower costs. Improved cost/profit balance is another reason why on-time, in-full delivery has become a focal point for shippers today. Freight shipping services and OTIF delivery improve cost management, making expenses more manageable.

Improve Success With Consistent Performance

Consistency is crucial to maintaining a competitive advantage in today’s shipping markets. Reliable delivery in full and on time improves overall success for shippers and helps offset looming problems that threaten optimal performance with reefer trucking services. As highlighted by Transport Dive in March of 2022, the trucking industry is short by around 80,000 drivers. Coupled with the long-standing rate among long-haul truck drivers reaching nearly 90% for years, it is easy to see how on-time, in-full delivery impacts performance levels. Improved driver retention and services mean more consistent performance and reliability in the customer’s eyes. Consistent and reliable deliveries can quickly become the norm rather than the exception for companies.

Easier to Resolve On Time In Full Fine Disputes

Despite the best plans and predictive analysis, issues will still arise, and disputes over deliveries, fines, and refunds will occur. While on-time in-full success rates can significantly lower these instances, the ability to offer delivery in full on time will also help make claim resolutions easier. Many customers have stated they will continue to work with shippers, even after a bad experience, if the resolution or claims process is fair and straightforward. Customer retention and improved satisfaction are why shipping and logistics managers today must focus on on-time, in-full delivery KPIs and understand OTIF definitions and applications. Improved delivery success keeps customers loyal to their favorite shipping companies. 

It Frees Management and Sales Teams to Focus on Customers

The final benefit for shippers who master on-time, in-full deliveries is that it frees team members and management to focus on more critical aspects of the business. As highlighted by Supply Chain 24/7, consumers expect products to be on the shelf. The U.S. food retail industry has an estimated loss of between $15–$20 billion in sales due to unavailable or unusable goods. This makes up 2%–3% of total sales each year in this niche market alone. Reliable delivery in full time streamlines processes within the supply chain and helps improve specialized shipping options such as drop and hook and rush delivery orders. The goal ultimately is to work towards enhanced end-to-end customer satisfaction and shipping services across the board.

Manage On-Time In-Full Delivery Metrics Effectively With Insight and Guidance From Industry Leaders

The benefits of OTIF delivery become apparent when statistical data is closely analyzed and considered across multiple shipping and market niches. Shipping companies that deliver on the promise of reliable, on-time, in-full deliveries can enjoy greater security, even during periods of market volatility. With the right industry partnership, insight, feedback, and support, shipping companies of all sizes can improve OTIF deliveries. It is possible to enjoy the benefits of high delivery rates, whether  dealing with oversized and overweight freight, hazardous loads, refer goods, or dry van truckloads. A strong industry partnership can help improve shipping data collection and analysis and keep on-time in-full delivery KPIs and milestones in focus. 

To master delivery in full and on time, shipping companies must maintain a high level of dedication and focus on keeping up with current market trends and changing consumer needs. The increasing pressure on domestic and global supply chains intensifies as ongoing recovery efforts continue. Consumers want reliable and affordable shipping and guaranteed on-time, in-full deliveries. This expectation has become the norm and the minimum standard for an exceptional service offering. A dramatically changing and fluctuating environment makes growth and recovery in the market all the more challenging. Contact Entourage Freight Solutions today to learn more about the benefits of OTIF that await.