What is OTIF and Why It Matters in Supply Chain Performance
OTIF stands for On-Time, In-Full—a critical supply chain metric that measures how well you meet customer delivery expectations. It assesses your ability to deliver exactly what the customer ordered, when they expected it, in one complete shipment.
Breaking it down:
On-Time: The order arrives on or before the agreed delivery date.
In-Full: The quantity shipped matches the customer’s purchase order—no short or over shipments.
How OTIF is calculated:
OTIF (%)=(Number of orders delivered on-time AND in-fullTotal number of orders)×100\text{OTIF (\%)} = \left( \frac{\text{Number of orders delivered on-time AND in-full}}{\text{Total number of orders}} \right) \times 100
Why OTIF matters:
Reflects the reliability of your end-to-end fulfillment process
Directly impacts customer satisfaction and retention
Helps identify issues in production, inventory, or logistics
Encourages better cross-functional coordination
How to improve OTIF:
Enhance inventory visibility and control
Invest in accurate demand forecasting
Improve production scheduling
Strengthen logistics and delivery coordination
