What is OTIF and How is it Used for Better Fulfillment Performance?

OTIF (On-Time In-Full) is a common metric that can be applied across the entire supply chain. It measures if an order was delivered within the expected time frame and if it included every item in the order.  

While OTIF is often used to monitor delivery performance, it is sometimes used as a fulfillment metric to track how often orders are packaged and shipped properly.  

Why is OTIF Used? When is it Important? 

OTIF measures how a fulfillment provider performs—both the timing of their deliveries and the accuracy of their order.  

If OTIF is low, there are a variety of things that may need attention.  

  • If orders are not delivered in full, then some part of the picking, packing, or labeling process isn’t working.  
  • If the order is not delivered on time, it is harder to decipher where the issue is; it may be either that there is an issue with when the order leaves the distribution facility or an issue within the shipping carrier’s performance. 

OTIF is particularly helpful for retail fulfillment. Retailers are very specific about how and when they need to receive orders. Any issues result in fines or chargebacks, which can get very costly very quickly if they are applied per unit.