Logistics & Transportation

On-Time In-Full (OTIF)

Definition

OTIF measures the percentage of orders delivered both on the promised date and with the complete ordered quantity. An order must pass both tests to count, making OTIF a strict combined measure of delivery service.

In Practice

OTIF is computed as orders delivered on time and in full divided by total orders, though definitions vary: some customers measure against the requested date, others the confirmed date; some measure at line level, others at order level; and delivery windows may be a day or a two-hour appointment. Knowing exactly how each customer scores you is half the job.

The metric matters because large retailers enforce it with money. Compliance programs fine suppliers a percentage of invoice value for misses, so a point of OTIF can be worth real margin. Because it is a compound metric, fixing it means decomposing failures: late pickups, carrier transit misses, warehouse shorts, and appointment scheduling problems each need different owners.

For example, a supplier shipping to a retailer with an 85 percent OTIF threshold and a 3 percent fine on non-compliant cases builds a weekly scorecard tracing every failed order to its root cause.

Related Calculators

Related Terms

Browse the full glossaryAcronym Lookup Tool