OTIF stands for On Time In Full and is a key performance indicator (KPI) of your products’ supply chain. OTIF is a crucial measurement of how well your operations team fulfills your orders according to your customers' requirements. Failing to fulfill your orders within the designated delivery dates, and with all of the ordered items, can result in costly fees.
The formula in general for OTIF is:
OTIF ( % ) = number of cases on time in full ÷ total number of cases ordered * 100
Note: Orders can be split and still comply. If an order has two separate delivery dates, consider each delivery separately. Check with your purchaser before breaking up orders to make sure they accept split shipments.
Key Metrics for OTIF Scores
There is a reduction in a product's quality (i.e. shipments come in damaged or expired).
Shipments do not arrive at the intended destination.
The quantity shipped does not match the quantity ordered on the Purchase Order.
For Collect Ready orders, the shipment was not available at the appointment time.
For Prepaid orders, the shipment did not arrive at the appointment time.