On-Time In-Full (OTIF) is a crucial performance indicator that measures a company’s ability to deliver products both on time and in the quantity ordered. The metric is determined by dividing the number of orders delivered perfectly (both on time and in the correct quantity) by the total number of orders shipped. The resulting figure is often expressed as a percentage, providing a clear representation of delivery performance. For example, if a company ships 100 orders and 85 are delivered on time and in full, the performance would be 85%. This represents a direct assessment of supply chain efficiency.
A strong on-time, in-full percentage directly impacts customer satisfaction, reduces costs associated with returns or incomplete orders, and contributes to improved inventory management. Historically, its relevance has grown alongside increasingly complex global supply chains and heightened customer expectations for prompt and accurate order fulfillment. Businesses utilize it to identify areas for improvement within their operations, streamline processes, and ultimately, enhance their overall competitive advantage. It offers a quantifiable means to gauge the effectiveness of logistics strategies.
