OTIF (On-Time-In-Full)

The On-Time-In-Full (OTIF) indicator is a key metric used in supply chain management. It allows it to assess the efficiency of suppliers and monitor the degree to which customer expectations are met in two key aspects:

• Timeliness- delivery of the order in accordance with the agreed deadline.
• Completeness- delivery of all ordered products without any deficiencies in quantity or quality.

The OTIF value is expressed as a percentage and shows how often a company delivers fully in line with its customers' expectations.

Why is the OTIF indicator so important?

Regular monitoring of OTIF allows companies to assess and improve the efficiency of their logistics processes on an ongoing basis. A high OTIF indicates operational efficiency, which translates into:

• Higher customer satisfaction and loyalty.
• Increasing competitiveness in the market.
• Avoiding costly contractual penalties for delays.
• Building a positive brand image as a reliable business partner.

In turn, a low OTIF can signal problems in logistics processes, leading to customer dissatisfaction, a decrease in trust and, ultimately, a reduction in orders and loss of contractors.

Key components of the OTIF indicator

The OTIF indicator has two components, which need to be analysed separately to identify specific areas for improvement:

1. On-Time delivery

Timeliness means the delivery of an order on or before the agreed date. To assess the level of punctuality, the date of the actual delivery of the order should be compared with the date agreed with the customer.

2. completeness of supply (In-Full)

Completeness means the delivery of all ordered products in the correct quantity and in perfect quality. In order to assess completeness, it is necessary to compare the number and quality of the delivered products with the customer's order, taking into account any quantity shortages and damage caused during packaging, transport or storage.

How to calculate the OTIF indicator?

The calculation of OTIF is straightforward and involves applying the following formula: OTIF (%) = (Number of orders delivered on time and complete / Total number of orders) × 100% Practical example: If a company fulfilled 100 orders in a month, of which 90 were delivered on time and complete (no quantity or quality deficiencies), the OTIF indicator is: OTIF = (90 / 100) × 100% = 90%

How to improve your company's OTIF rate?

In order to effectively increase the value of the OTIF indicator, it is worth introducing the following practices:

• Regular monitoring and analysis of OTIF results.
• Optimisation of storage and transport processes.
• Cooperation with reliable suppliers and carriers.
• Training of staff responsible for packing and shipping orders.
• Implement IT systems (e.g. ERP, WMS) to ensure better control and transparency of logistics processes.

Summary - why measure OTIF?

The OTIF indicator is an extremely important tool to assess and improve delivery performance on an ongoing basis. Regular monitoring of this indicator helps to meet customer expectations, increase customer satisfaction and build lasting business relationships based on trust. Remember that a high OTIF indicator not only means efficient logistics, but above all a satisfied customer who is more likely to return with future orders. Want to learn more about supply chain optimisation? Contact us - our experts will be happy to help you improve your OTIF results!