Predictive AI models can significantly improve your OTIF scores in several ways:
1. Real-time Visibility and Predictive Signals: AI solutions can provide real-time visibility of shipments and generate predictive signals in case of deviations. This allows logistics managers to take proactive measures to ensure on-time delivery, thereby improving the OTIF score.
2. Vendor Performance Management: AI can help track the performance of transporters, categorizing them as most and least preferred based on their track record. This can help in making improved decisions during transporter allocation, which can enhance OTIF performance.
3. Predictive Analytics: Predictive analytics can provide recommendations on how a company can make changes at the individual level to improve OTIF scores. It can also measure the likelihood of a shipment being delivered on time, which is a significant step forward from traditional analytics.
4. Dynamic Route Optimization: AI can adjust delivery routes in real-time, considering factors like traffic congestion or sudden weather changes, ensuring timely deliveries.
5. Proactive Exception Management: AI can proactively manage exceptions in the logistics process, thereby reducing the chances of late or incomplete deliveries.
6. Improved Forecasting and Planning: AI can utilize historical data and predictive analytics to improve demand forecasting, ensuring that businesses meet customer demand, contributing to the 'In-Full' component of OTIF.
7. Predictive Maintenance: AI can leverage historical shop floor data to predict when equipment might fail and schedule maintenance accordingly. This can prevent unexpected downtime that could impact OTIF scores.
8. Capacity Planning: AI can plan capacity based on demand patterns without overstocking or understocking of inventory, ensuring that the right amount of product is available for delivery at the right time.
These capabilities enable businesses to make data-driven decisions, anticipate and manage potential disruptions, and optimize their supply chain operations to ensure on-time, in-full deliveries.
