The supply chain industry has not settled on an exact formula for the OTIF, but in general, the formula is: The number of deliveries made on time and complete / the total number of deliveries.
What is OTIF KPI?
On Time in Full (OTIF) Delivery is a well-known KPI to analyze the supply chain process. On Time in Full means, that the company was able to deliver the full quantity requested by the customer on the requested date the latest.
How can I improve my OTIF performance?
- Familiarize yourself with the policies. Review and confirm your customer's requirements.
- Understand appointment scheduling.
- Align production and transportation.
- Streamline your communication.
What is a good DIFOT?
Logistics companies are awarded work based on their ability to deliver a certain DIFOT % score. In Australia, anything over 95% is regarded as acceptable, depending on the industry sector. Often seen around stations are “How we've been Tracking” posters claiming a 98.8% Service Delivery, and a 91.8% punctuality score.
What is on time full delivery?
On Time in Full means, that the company was able to deliver the full quantity requested by the customer on the requested date the latest. The OTIF can be measured for a complete order, meaning that all items of one sales order are delivered on-time and in full.
What is OTIF formula?
OTIF ( % ) = number of deliveries OTIF ÷ total number of deliveries * 100. But it can also, according to organizations, be calculated according to the number of orders or the number of the order lines. Some organizations calculate OTIF by the percentage of the total order quantity that has been on-time.
How is on time delivery performance calculated?
To calculate OTD rate, you divide the total number of orders delivered by the number of deliveries that arrived after the promised delivery date. Most companies measure OTD with a date range, typically spanning five days before the delivery due date.
Why do we measure OTIF?
OTIF is a measure of your outbound operation that mainly measures customer satisfaction. OTIF is generally used to cover the entire supply chain, and therefore, as delivery to the customer is the final step, then delivery OTIF is an indicator of performance across the whole supply chain.
What is fulfillment rate?
What is order fulfillment rate? The order fulfillment rate (or order fill rate) is the number of orders that are processed divided by the total number of orders.
What is fill rate in warehouse?
Fill rate is the number of orders that can be fulfilled at any given time without resorting to backorders or stockout. The fill rate calculation is used near the end of the supply chain, as fill rate can only be calculated by knowing confirmed order numbers.
What does OTIF measure?
OTIF measures the extent to which shipments are delivered to their destination according to both the quantity and schedule specified on the order.