This metric quantifies the effectiveness of a supply chain’s delivery performance. It represents the percentage of orders delivered completely and punctually, according to the customer’s request. For example, if a customer orders 100 units with a specific delivery date and receives all 100 units on or before that date, that order is considered “on time in full.”
Accurate measurement of this performance indicator is crucial for maintaining customer satisfaction and optimizing operational efficiency. Higher scores correlate directly with improved customer loyalty, reduced costs associated with errors and returns, and a stronger competitive advantage. Historically, improvements in this area have driven significant gains in supply chain management, leading to leaner operations and more responsive customer service.