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OTIF (on time, in full)

The share of ordered quantity that arrives at the retailer by the requested date and in the ordered quantity (McKinsey, 2019).

Why it matters

Retailers use OTIF to rate suppliers, and some charge penalties when it falls short. Late or short deliveries lead to out-of-stocks.

How to calculate

Cases delivered on time and in full ÷ cases ordered × 100. It can also be measured per order or per order line, and definitions differ by retailer, so agree the basis with each one (McKinsey, 2019).

Sources

  1. McKinsey: defining on-time, in-full in the consumer sector (13 Jun 2019)