How Quantzig Used OTIF Maximization to Bring the Ultimate Game Changer in Increasing Operational Efficiency for a CPG Manufacturer 

Business Challenge

A leading Consumer Packaged Goods (CPG) manufacturer based in the USA, with over 30 manufacturing sites and 50+ distribution centers worldwide, faced critical challenges in maintaining On-Time-In-Full (OTIF) delivery. The client’s logistics network involved a mix of in-house and third-party logistics (3PL) services, which led to fragmented visibility across the supply chain. The combination of different routing and configurations required by the geographically dispersed locations, along with high order volumes of over 50 million annually and an average of 20,000 daily orders, escalated the complexity of meeting On-Time In-Full (OTIF) delivery targets.

Fragmented Supply Chain

Complex Routing and Configuration

Unstructured Data Aggregation

A major issue was the aggregation of data from 3PL vendors and outsourced manufacturing partners. Data from these sources typically arrived in unstructured formats such as Excel spreadsheets and emails, making it difficult to efficiently consolidate and analyze the information.

How Quantzig Helped

Quantzig leveraged its expertise in data analytics and supply chain optimization to address the client’s OTIF challenges. The solutions implemented included:

1. Automated Data Aggregation: : Developed a mechanism to systematically aggregate data from external sources, eliminating manual errors and inconsistencies.
2. Advanced Simulation Models:: Built advanced simulation models after systemizing the scattered data to analyze and accurately identify scenarios with a high probability of OTIF failures, ensuring targeted interventions.
3. Critical Node Identification: : Pinpointed key bottlenecks responsible for delays, some of which included warehouse pickups, inventory replenishment, and manufacturing delays, enabling focused corrective actions.

Results & Impact

Quantzig’s solutions delivered remarkable improvements across the client’s supply chain. Inventory replenishment times were reduced by 57%, while outbound OTIF performance saw a significant enhancement of 90%. For specific critical nodes, the OTIF performance improvement reached an impressive 95%, highlighting the effectiveness of the targeted interventions.

Ending Thoughts

Quantzig’s data-driven approach to supply chain optimization enabled the client to overcome their OTIF delivery challenges effectively. By addressing the root causes of delays and enhancing visibility across the supply chain, the client achieved substantial operational efficiency improvements, ensuring timely and complete deliveries across their global network.