On-Time Delivery Rate vs On-Time In-Full Rate
On-Time Delivery Rate and On-Time In-Full (OTIF) Rate measure different aspects of supply chain performance and fulfilment reliability. On-Time Delivery Rate focuses solely on the temporal aspect of order fulfilment, measuring the percentage of shipments that arrive within the promised or scheduled delivery window, regardless of whether the order contents are complete or accurate. OTIF Rate, on the other hand, combines timeliness with completeness by measuring the percentage of orders delivered both within the agreed timeframe (On-Time) and with all requested items in the correct quantities (In-Full). The fundamental difference is that OTIF represents a more comprehensive and stringent performance standard that recognizes that customers require both prompt delivery and complete order fulfilment to consider a supplier's performance satisfactory.
Consider a manufacturing operation supplying components to an automotive assembly plant operating under just-in-time production principles. On-Time Delivery Rate would be more appropriate when specifically troubleshooting logistical delays or transportation issues, such as when evaluating different shipping carriers or routes. For example, if shipments are consistently arriving late from a particular distribution centre, tracking On-Time Delivery Rate in isolation helps identify whether the problem lies with transportation rather than inventory availability. Conversely, OTIF becomes the crucial metric when evaluating overall supplier performance and reliability, especially in production environments where incomplete deliveries are as disruptive as late ones. If the automotive manufacturer receives 98% of shipments on schedule but 15% of those shipments are missing critical components, the seemingly strong On-Time Delivery Rate masks serious supply chain deficiencies that would be immediately evident in a lower OTIF measurement of 83%, providing a more accurate picture of the actual service level being delivered.
On-time Delivery
On-Time In-Full
What is it?
On-time delivery measures the percentage of orders delivered to customers on or before the promised delivery date. It helps evaluate the efficiency of the supply chain in meeting customer expectations. On-time delivery is crucial for maintaining high customer satisfaction levels. Timely delivery is often seen as a reflection of a company's reliability, and consistent punctuality can lead to increased customer trust and loyalty. Moreover, on-time delivery helps to avoid unnecessary costs related to late delivery compensation or loss of business, directly impacting the company's bottom line.
On-Time In-Full (OTIF) delivery rate measures the percentage of orders delivered both on the promised date (or within the agreed time window) and complete with all requested items in the correct quantities. It combines punctuality and completeness into a single metric that reflects successful order fulfilment from the customer's perspective.
Who is it for?
Categories
Formula
Example
Suppose a company has a total of 250 orders that were supposed to be delivered in the month of March. Out of these 250 orders, 230 were delivered on or before the promised delivery date. To calculate the On-Time Delivery percentage for March, we would apply the formula: On-Time Delivery % = (Count of On-Time Deliveries / Total Number of Deliveries) x 100 On-Time Delivery % = (230 / 250) x 100 = 92% This tells us that in March, 92% of the company's orders were delivered on time. This is an essential metric for the company to track and work on improving if necessary.
In February, Johnson Manufacturing shipped 840 orders total. Of these, 798 orders arrived on or before the promised delivery date, and 807 orders contained all requested items in the correct quantities. However, only 756 orders satisfied both conditions (arriving on-time AND containing all requested items). Therefore, Johnson's OTIF rate would be (756 ÷ 840) × 100 = 90% for February, despite their on-time rate being 95% and their in-full rate being 96% individually.
Published and updated dates
Date created: Sep 14, 2023
Latest update: May 9, 2025
Date created: May 9, 2025
Latest update: May 9, 2025