As the manufacturing landscape continues to evolve, customers expect fast, accurate and dependable delivery. That’s where OTIF (On-Time In-Full) comes in. As a key performance indicator in the OTIF supply chain, it measures not only whether deliveries arrive on schedule but also whether they contain exactly what was ordered.
For manufacturers looking to gain a competitive advantage, OTIF isn’t just another metric—it’s a reflection of your supply chain reliability, production efficiency and customer satisfaction.
What is OTIF?
OTIF is a performance metric used to measure how well a company meets customer delivery expectations.
- On-Time refers to whether the delivery arrived by the date the customer expected.
- In-Full measures whether the entire order quantity was delivered, with no shortages or substitutions.
An order that meets both criteria—arriving when promised and with the correct quantity—is considered OTIF compliant.
Tracking OTIF helps manufacturers identify weak points in their fulfillment processes, from production scheduling and material availability to logistics and warehouse coordination.
DIFOT vs. OTIF
You may also see the term DIFOT (Delivered In-Full, On-Time) used interchangeably with OTIF. Both measure the same concept: the percentage of customer orders delivered on time and in full.
The difference is largely semantic and regional. DIFOT is more common in Australia and Europe, while OTIF is standard in North America. Functionally, they represent the same supply chain performance metric.
Fill Rate vs. OTIF
Fill rate is another term that is often confused with OTIF. While related, they measure different aspects of order fulfillment.
- Fill rate tracks the proportion of customer demand that is met directly from available stock.
- OTIF, on the other hand, captures the end-to-end delivery experience, combining accuracy, completeness and timing.
A company can have a high fill rate but still a low OTIF score if deliveries are late or incomplete. For example, if your warehouse ships most items immediately but your carrier misses delivery deadlines, your fill rate may be excellent, yet OTIF will reveal the true customer experience.
Why OTIF is Important
In modern manufacturing, OTIF is one of the most telling indicators of supply chain health. High OTIF performance means your systems, from production planning to logistics, are synchronized and customer expectations are being met.
Key benefits of tracking OTIF include:
- Improved customer satisfaction: Reliable, on-time delivery builds trust and repeat business.
- Enhanced supply chain visibility: Identifying OTIF failures pinpoints where delays or shortages occur.
- Reduced penalties: Many retailers and distributors impose fines for poor OTIF performance.
- Data-driven optimization: Integrating OTIF tracking with internal systems allows manufacturers to analyze root causes and continuously improve performance.
- Operational alignment: Encourages cross-functional collaboration between production, logistics and customer service teams.
What is a Good OTIF Score?
A good OTIF score depends on the industry and customer requirements, but most manufacturers target 95% or higher. Some sectors, especially automotive or retail, demand near-perfect compliance (98–100%), while others may accept lower thresholds.
If your OTIF score consistently falls below 90%, it’s a signal that bottlenecks exist in your order fulfillment process. These can be due to inventory shortages, production scheduling issues or transportation delays. Regardless of industry, manufacturers should aim for OTIF scores as near perfect as possible to ensure that customer satisfaction is being met at all times.
How to Calculate OTIF
The OTIF formula is straightforward:
OTIF = (Number of orders delivered on time and in full/Total number of orders)×100
For example: If 950 out of 1000 customer orders were delivered on time and in full, your OTIF score would be 95%.
Best Practices for Accurate OTIF Measurement
- Define “on-time” clearly: Base it on the customer’s required date, not the ship date.
- Establish “in-full” criteria: Must include all SKUs, quantities and quality specifications.
- Leverage analytics: Use integrated dashboards to capture data from production, inventory and logistics in real time.
- Monitor trends, not just snapshots: Monthly or quarterly reviews help detect systemic issues.
Improving OTIF Performance
If your OTIF score routinely falls below the expected threshold, there are steps you can take to improve compliance. These include:
- Integrate planning and execution: Use connected systems like ERP to align production with demand forecasts.
- Enhance inventory visibility: Real-time stock data helps prevent shortages and overpromising.
- Collaborate with carriers and suppliers: Strong communication reduces transit and supply delays.
- Automate alerts: Use exception-based reporting to flag potential late or incomplete orders before they happen.
- Continuously analyze performance: Track OTIF by customer, product line and region to uncover patterns.
Building a Reliable OTIF Supply Chain with Plex
Achieving high OTIF performance isn’t just about meeting delivery promises; it’s about building a resilient, data-driven supply chain that consistently exceeds customer expectations.
With Plex’s connected manufacturing platform, businesses can track OTIF in real time, uncover performance gaps and create actionable strategies for improvement. The result is stronger customer relationships, fewer disruptions and a more agile supply chain ready for the challenges of modern manufacturing. .
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