Procurement Glossary
On-Time In Full (OTIF): Key figure for perfect delivery performance
November 19, 2025
On-Time In Full (OTIF) is a key performance indicator in procurement management that measures how often deliveries are made both on time and in full. This metric combines two critical aspects of supplier performance and enables a holistic assessment of supply chain efficiency. Find out below how OTIF is calculated, what trends shape the metric and how you can successfully minimize risks.
Key Facts
- OTIF combines on-time delivery and completeness in a single KPI
- Typical target values are between 95-98% depending on the industry
- Direct impact on stock levels and production planning
- Important building block for supplier evaluation and development
- Enables precise cost calculation of delivery failures
Contents
Definition and meaning of On-Time In Full (OTIF)
OTIF is a combined performance indicator that measures both the timely and complete fulfillment of orders.
Core components of the OTIF measurement
The key figure is made up of two main elements:
- On-time: Delivery on the agreed date or within the defined time window
- In Full: Complete delivery of the ordered quantity without shortages
- A delivery is only considered OTIF-compliant if both criteria are met
OTIF vs. other delivery metrics
In contrast to isolated metrics such as on-time delivery or fill rate, OTIF offers a holistic view of delivery performance. While individual metrics highlight partial aspects, OTIF captures the actual usability of a delivery from the customer's perspective.
Importance of OTIF in Procurement
For purchasing organizations, OTIF acts as a strategic management tool for optimizing supplier evaluation. The indicator enables an objective assessment of supplier performance and supports data-based decisions in contract negotiations and supplier development.
Measurement, database and calculation
The precise recording of OTIF requires structured data collection and standardized evaluation criteria.
Calculation formula and data basis
OTIF is calculated as a percentage: (number of OTIF-compliant deliveries / total number of deliveries) × 100. This is based on order data, delivery bills and goods receipt postings from ERP systems.
- Time window definition: Usually ±1-3 days depending on the industry
- Quantity tolerance: Often 0% deviation for complete fulfillment
- Documentation of all delivery deviations with root cause analysis
System integration and automation
Modern OTIF measurement is achieved by integrating ERP, WMS and supplier systems. Automated data collection reduces manual errors and enables real-time monitoring of delivery performance.
Benchmarking and target value definition
Industry-specific benchmarks support the definition of realistic OTIF targets. The goods receipt throughput time has a significant influence on the tolerance window for deadline evaluation.
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Interpretation and target values for OTIF
The correct interpretation of OTIF values requires industry-specific benchmarks and contextual analysis.
Sector-specific target values
OTIF target values vary considerably between industries: Automotive suppliers often aim for 98-99%, while the construction industry considers 90-95% to be acceptable. The inventory turnover rate influences the tolerance for delivery deviations.
- Automotive: 98-99% OTIF rate
- FMCG/Retail: 95-97% OTIF rate
- Industrial goods: 90-95% OTIF rate
Trend analysis and early warning indicators
Continuous OTIF monitoring enables early detection of performance deterioration. Rolling 12-month averages smooth out seasonal fluctuations and reveal sustained trends in delivery performance.
Integration into supplier contracts
OTIF metrics are increasingly being integrated into service level agreements, with financial incentives for exceeding or falling short. The link to contractual conformity creates measurable performance standards.
Risks, dependencies and countermeasures
OTIF optimization involves specific risks that must be addressed through systematic risk management.
Supplier dependencies and single-source risks
High OTIF requirements can lead to excessive dependence on a small number of high-performance suppliers. This increases supply risks in the event of supplier failures or capacity bottlenecks.
- Diversification of the supplier base to spread risk
- Development of backup suppliers with acceptable OTIF performance
- Continuous monitoring of the complaint rate
Cost risks due to overfulfillment
Excessive OTIF targets can lead to unnecessary additional costs due to express deliveries or excess stock. The balance between service level and cost efficiency requires careful consideration of lead time optimization.
Data quality and measurement inaccuracies
Incomplete or incorrect data collection distorts OTIF values and leads to incorrect supplier ratings. Robust data validation and regular system audits are essential for reliable key figures.
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Practical example
An automobile manufacturer implements OTIF monitoring for its 200 main suppliers. Daily data capture from the ERP system automatically checks deliveries for adherence to delivery dates (±1 day) and completeness (100% quantity). If OTIF rates fall below 95%, automatic escalations are made to supplier management. After 12 months, the average OTIF rate rises from 89% to 96%, while stock levels are reduced by 15%.
- Automated data collection reduces manual errors
- Early warning system enables proactive supplier development
- Improved planning reliability thanks to higher OTIF rates
Data and market trends for OTIF
Current developments show an increasing digitalization of OTIF measurement and stricter requirements for delivery performance.
Digital transformation and AI integration
Artificial intelligence is revolutionizing OTIF analysis through predictive models and automated risk detection. Machine learning algorithms identify patterns in delivery deviations and enable proactive countermeasures.
- Predictive analytics for delivery risks
- Automated supplier alerts in the event of OTIF deterioration
- Real-time dashboards for continuous monitoring
Tightening of performance requirements
Market trends show rising OTIF expectations, particularly in the automotive industry and e-commerce. Companies are increasingly demanding OTIF rates of over 98%, which creates new challenges for service level management.
Integration in sustainability assessments
OTIF is increasingly being linked to sustainability metrics, as efficient deliveries reduce transportation emissions. The combination of supplier evaluation and environmental criteria is gaining strategic importance.
Conclusion
On-Time In Full (OTIF) is establishing itself as an indispensable key performance indicator for modern supply chain management, as it combines on-time delivery and delivery completeness in one meaningful metric. Increasing digitalization enables more precise measurement and proactive management of delivery performance. However, successful OTIF optimization requires a balance between service level requirements and cost efficiency in order to create sustainable competitive advantages.
FAQ
What exactly does On-Time In Full (OTIF) mean?
OTIF measures the percentage of deliveries that are both on time and complete. A delivery is only considered OTIF-compliant if both criteria are met at the same time. This distinguishes OTIF from isolated metrics such as pure on-time delivery or delivery completeness.
How is OTIF calculated in practice?
OTIF = (number of on-time AND complete deliveries / total number of deliveries) × 100. Tolerance windows are defined for time (usually ±1-3 days) and quantity (often 0% deviation). The calculation is typically based on ERP data and goods receipt postings.
Which OTIF values are realistically achievable?
Standard industry OTIF rates are between 90-99%. Automotive suppliers often achieve 98-99%, while other industries consider 90-95% to be acceptable. The target values depend on product complexity, supplier structure and market requirements.
What are the risks of focusing too much on OTIF?
Excessive OTIF requirements can lead to additional costs due to express deliveries, excess stock or supplier dependencies. There is also a risk that suppliers will neglect quality in favor of on-time delivery and completeness. A balanced assessment of all performance dimensions is therefore essential.
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