On-time in-full (OTIF)
OTIF meaning
OTIF stands for On-Time In-Full, a key performance indicator (KPI) used in supply chain management to measure the percentage of orders delivered to customers both on time and in full. It assesses the effectiveness and efficiency of logistics operations in meeting customer expectations regarding delivery timeliness and order completeness.
How is OTIF calculated?
OTIF is typically calculated by dividing the number of orders delivered on time and in full by the total number of orders shipped during a specific period, usually expressed as a percentage. For example, if a company delivers 90 out of 100 orders on time and in full, the OTIF score would be 90%.
How to Improve OTIF
To improve OTIF performance, supply chain professionals can:
Enhance forecasting: Improve demand forecasting accuracy to better plan inventory levels and transportation capacity.
Streamline operations: Optimize warehouse processes, transportation routes, and order fulfillment workflows to minimize delays and errors.
Strengthen supplier relationships: Collaborate closely with suppliers to ensure timely delivery of materials and components.
Invest in technology: Adopt transportation management systems (TMS), warehouse management systems (WMS), and real-time tracking solutions to improve visibility and control over logistics operations.
By focusing on these strategies, organizations can enhance OTIF performance, increase customer satisfaction, and drive overall supply chain excellence.