Perfect Order Rate vs On-Time In-Full Rate
Perfect Order Rate and On-Time In-Full (OTIF) Rate both measure order fulfilment performance but differ in scope and stringency. Perfect Order Rate is a comprehensive metric that evaluates whether an order meets all performance criteria across the entire fulfilment process, typically encompassing on-time delivery, complete quantity, accurate documentation, undamaged products, and correct invoicing—essentially measuring flawless execution through every step of the supply chain. OTIF Rate, while still rigorous, focuses more narrowly on two critical aspects: whether the complete order was delivered (In-Full) and whether it arrived within the promised timeframe (On-Time). The key distinction is that Perfect Order Rate is a more holistic measurement that includes additional quality dimensions beyond timing and completeness, making it a more stringent benchmark for operational excellence.
When evaluating comprehensive supply chain performance or conducting root cause analysis of customer satisfaction issues, Perfect Order Rate would be more appropriate. For instance, a manufacturer shipping industrial equipment might achieve a strong OTIF Rate of 95%, but upon examining their Perfect Order Rate of 82%, they discover persistent problems with inaccurate documentation and billing errors that are creating administrative burdens for customers despite timely and complete deliveries. Conversely, OTIF Rate becomes particularly valuable when focusing specifically on inventory management and logistics execution, especially in industries with tight delivery windows. A grocery retailer supplying fresh products to restaurants would closely monitor OTIF as their primary metric, as partial deliveries or delayed shipments directly impact their customers' operations, even if all paperwork and invoicing are flawless. In this case, the more focused OTIF measurement provides clearer visibility into the specific fulfilment challenges most critical to their business context.
Perfect Order Rate
On-Time In-Full
What is it?
Perfect Order Rate measures the percentage of orders that are delivered without any errors, such as missing items, incorrect quantities, or damaged goods. It reflects the overall accuracy and quality of order fulfillment. The Perfect Order Rate (POR) is an essential supply chain metric that measures the effectiveness of an organization’s order fulfillment process. It is calculated by determining the percentage of orders that are executed flawlessly, without any errors or issues. Considered from a customer's perspective, a perfect order is one that arrives on time, contains the right items in the correct quantities, is delivered to the right place, and is accompanied by the correct invoicing.
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
Assume in the month of April, a company had 300 total orders. Out of these, 270 orders were delivered perfectly, with no errors in items, quantities, location, timing or invoicing. Applying the formula to calculate the Perfect Order Rate: Perfect Order Rate % = (Count of Perfect Orders / Total Number of Orders) x 100 Perfect Order Rate % = (270 / 300) x 100 = 90% This means that in the month of April, 90% of the company's orders were perfect. This metric helps the company identify and rectify any issues in their order fulfillment process to increase customer satisfaction.
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