Supply Chain Management: measuring service level through the OTIF KPI

Abstract

The thesis examines supply chain management (SCM) with a focus on the OTIF (On Time In Full) service level indicator, particularly within EssilorLuxottica. It highlights the evolution of SCM, emphasizing its role in improving organizational competitiveness by reducing inefficiencies and enhancing coordination across supply chain participants. Performance measurement is essential, with OTIF serving as a key KPI to evaluate how accurately and promptly customer orders are fulfilled. Demand fluctuations, back order levels, and inventory management are among the most important concepts that any company must be able to best manage in order to compete in such a competitive market and offer a good level of customer service. For this reason, measuring the performance of supply chain activities and in particular the service level through the OTIF KPI, is critical in order to have a guideline of how the company is performing. Finally, the thesis concludes with a case study related to the internship experience at the EssilorLuxottica company, where through the use of reprocessed historical data from the company, it has been estimated what the company's future service level will be in order to obtain a benchmark.