Definition
On Time In Full (OTIF) is a key supply chain performance metric that measures the percentage of customer orders delivered by the promised date (on time) and with the complete quantity of items requested (in full). Expressed as a single percentage, OTIF captures the reliability of an organization's order fulfillment process from end to end, combining delivery punctuality and order accuracy into one unified scorecard that directly reflects the customer experience.
Understanding On Time In Full
OTIF emerged as a critical KPI as supply chains grew more complex and customer expectations for reliable delivery intensified. Retailers, distributors, and manufacturers recognized that measuring delivery speed alone was insufficient—an order arriving on schedule but missing half its line items still represents a fulfillment failure. OTIF addresses this by requiring both conditions to be met simultaneously: the shipment must arrive within the agreed delivery window and contain every item in the correct quantity.
The metric is typically calculated by multiplying the on-time delivery rate by the in-full delivery rate, or by measuring the percentage of orders that satisfy both criteria at once. For example, if 90% of orders arrive on time and 95% arrive in full, the composite OTIF score would be approximately 85.5%—highlighting how even small shortfalls in each dimension compound into meaningful service gaps.
Organizations that track OTIF gain visibility into the upstream root causes of fulfillment failures, whether those stem from production delays, inventory shortages, warehouse picking errors, or transportation disruptions. By diagnosing where breakdowns occur, operations teams can implement targeted improvements rather than applying broad, costly fixes across the entire supply chain.
Key Components of OTIF
- On-Time Delivery (OT): Measures whether the order was delivered within the agreed-upon delivery window, accounting for factors like carrier performance, dispatch timing, and logistics planning accuracy
- In-Full Delivery (IF): Measures whether the order contained the complete quantity of every SKU requested, reflecting inventory availability, warehouse accuracy, and production reliability
- OTIF Score Calculation: Typically expressed as a percentage—either the product of OT% × IF%, or the share of total orders meeting both criteria simultaneously
- Measurement Window: The defined delivery timeframe against which performance is evaluated, which may vary by customer agreement, product type, or shipping method
- Penalty and Compliance Thresholds: Retailer-defined OTIF benchmarks (often 95–98%) below which suppliers may incur chargebacks or risk losing shelf placement
OTIF in Practice
A consumer goods manufacturer shipping to a major national retailer must consistently hit a 97% OTIF target. When their OTIF score drops to 91% over a quarter, analysis reveals two primary drivers: production scheduling misalignment causing 4% of orders to ship late, and inventory allocation errors causing 3% of orders to ship incomplete. Using an adaptive operations platform, the team reconfigures production sequencing rules, implements real-time inventory reservation logic tied to open orders, and establishes automated alerts when stock levels risk causing partial shipments. Within six weeks, their OTIF score recovers to 96.8%, avoiding an estimated $180,000 in quarterly retailer chargebacks.
Related Concepts
- Chargeback : Financial penalties imposed by retailers on suppliers for failing to meet compliance requirements, often triggered by OTIF shortfalls
- Fill Rate: The percentage of customer demand fulfilled from available stock without backorders, closely related to the "in-full" component of OTIF
- Perfect Order Rate: An expanded fulfillment metric that adds criteria beyond OTIF, such as damage-free delivery, correct documentation, and accurate invoicing
- Lead Time: The total elapsed time from order placement to delivery, a key variable influencing on-time performance
- Service Level Agreement (SLA): Contractual commitments between trading partners that define delivery expectations, forming the benchmark against which OTIF is measured
