{"id":14986,"date":"2023-05-23T06:44:03","date_gmt":"2023-05-23T13:44:03","guid":{"rendered":"https:\/\/michaeljbrumm.com\/dcl-v3\/?p=14986"},"modified":"2024-05-08T08:53:04","modified_gmt":"2024-05-08T15:53:04","slug":"what-is-otif","status":"publish","type":"post","link":"https:\/\/michaeljbrumm.com\/dcl-v3\/blog\/fulfillment\/what-is-otif\/","title":{"rendered":"What is OTIF and How is it Used for Better Fulfillment Performance?"},"content":{"rendered":"<p><span data-contrast=\"auto\">OTIF (On-Time In-Full) is a common metric that can be applied across the entire supply chain. It measures if an order was delivered within the expected time frame and if it included every item in the order.\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">While OTIF is often used to monitor delivery performance, it is sometimes used as a fulfillment metric to track how often orders are packaged and shipped properly.\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><b><span data-contrast=\"auto\">Why is OTIF Used? When is it Important?<\/span><\/b><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">OTIF measures how a fulfillment provider performs\u2014both the timing of their deliveries and the accuracy of their order.\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559731&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">If OTIF is low, there are a variety of things that may need attention.\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559685&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<ul>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"1\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559684&quot;:-2,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" aria-setsize=\"-1\" data-aria-posinset=\"1\" data-aria-level=\"1\"><span data-contrast=\"auto\">If orders are not delivered in full, then some part of the picking, packing, or labeling process isn\u2019t working.\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"1\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559684&quot;:-2,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" aria-setsize=\"-1\" data-aria-posinset=\"2\" data-aria-level=\"1\"><span data-contrast=\"auto\">If the order is not delivered on time, it is harder to decipher where the issue is; it may be either that there is an issue with when the order leaves the distribution facility or an issue within the shipping carrier\u2019s performance.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/li>\n<\/ul>\n<p><span data-contrast=\"auto\">OTIF is particularly helpful for retail fulfillment. Retailers are very specific about how and when they need to receive orders. Any issues result in fines or chargebacks, which can get very costly very quickly if they are applied per unit.\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559731&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><b><span data-contrast=\"auto\">Is OTIF the Same as On Time Performance?<\/span><\/b><span data-contrast=\"auto\">\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">OTIF is not to be confused with OTP (on-time performance). They are similar metrics but calculated and used very differently. OTP is also called on-time delivery (OTD) and signifies the number of times a delivery is made within the estimated or guaranteed delivery window. Sometimes a 3PL or logistics provider will track OTD or on time delivery. This is usually the same as OTP.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">OTP is often used as a metric to measure shipping carrier performance. OTP is a building block to OTIF\u2014if you can calculate the on-time delivery performance and the number of deliveries that were completed according to the order, then you have OTIF.\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><span data-contrast=\"auto\">\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><b><span data-contrast=\"auto\">How to Calculate OTIF\u00a0<\/span><\/b><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">It\u2019s a very straightforward metric. Count the number of deliveries that were completed perfectly and on time. Divide that number by the total number of orders.\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Here is the formula:\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Deliveries completed on time and in full \/ Total deliveries made = OTIF Rate<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559731&quot;:720,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">As an example, if you have 1000 orders in July and 800 of them were delivered on time and in full, then your OTIF rate for July is 8\/10. OTIF is usually tracked as a percentage, so that same rate would be cited as 80%.\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><b><span data-contrast=\"auto\">How to Improve OTIF\u00a0<\/span><\/b><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">As stated above, there are many reasons you might have a low OTIF rate.\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">The most common signifier of a low OTIF rate is customer complaints. If you are getting negative reviews or an increase of customer issues, you should do two things: comb through your fulfillment flow for gaps and inefficiencies; check with your carrier to see if they are meeting their delivery guarantees.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Here are a few detailed ways to improve your OTIF rate.\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Increase order visibility\u2014you need to have real-time updates on all order tracking to be sure everything is delivered on time and in-full. Check that your order management platform is the right one for your brand. It should give you stock levels, inbound shipping, sales volume, and returns, at the very least.\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Improve <\/span><a href=\"https:\/\/michaeljbrumm.com\/dcl-v3\/blog\/inventory\/inventory-accuracy\/\"><span data-contrast=\"none\">inventory management<\/span><\/a><span data-contrast=\"auto\">\u2014if you don\u2019t have a great inventory management system, your inventory accuracy is probably low, which will lead to a low perfect order rate and low OTIF rate. The right tool will track and record stock, give you real-time visibility and help you more accurately forecast.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Update your WMS\u2014a great warehouse management system is the backbone of your operations. Make sure you\u2019re using a state-of-the-art system to appropriately manage all aspects of your warehouse or distribution center.\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Check receiving data\u2014if your products aren\u2019t being received in a timely manner, then there is no way you\u2019ll have a high OTIF rate. Receiving needs to be done efficiently to get your products in stock quickly, this includes inbound shipping, <\/span><a href=\"https:\/\/michaeljbrumm.com\/dcl-v3\/blog\/fulfillment\/rework-and-refurbishment\/\"><span data-contrast=\"none\">returns and refurbishment<\/span><\/a><span data-contrast=\"auto\">.\u00a0\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Automate everything you can\u2014with automation comes greater accuracy. If you\u2019re using branded boxes, for example, your fulfillment time may be taking longer than if you used standard packing materials that fit well with automated processes (like label machines,\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Split warehouses for distributed inventory\u2014if you can get products closer to customers, the \u201con time\u201d aspect of OTIF will naturally improve. By placing inventory in multiple, strategically located warehouses, you\u2019ll have a better chance of lowering shipping times (and costs!).\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Switch carriers or shipping services\u2014maybe your customers don\u2019t need priority shipping. If you sell a product that doesn\u2019t require a quick transit time, consider slower shipping options like Ground.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><b><span data-contrast=\"auto\">Why Tracking OTIF Matters<\/span><\/b><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559685&quot;:0,&quot;335559737&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Obviously, every ecommerce brand wants products delivered to customers on time and in full. Customer satisfaction is so much of what any brand is focused on.\u00a0<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559685&quot;:0,&quot;335559737&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">But OTIF affects much more than just end-consumers. It starts with your suppliers and manufacturers. Any products or raw materials that need to be shipped to your facilities (called procurement) need to be delivered on time and in full. Your OTIF rate starts there.\u00a0<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559685&quot;:0,&quot;335559737&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Any marketplaces, retailers, or non-B2C sales channels also need to receive your products in a timely and accurate manner. This step is vital for a positive relationship with your sales channels. Having a low OTIF with B2B shipping may cost you in fines or severing the relationship.\u00a0<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559685&quot;:0,&quot;335559737&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Finding a good fulfillment partner who can get your products out with accuracy and speed is important to maintain a good OTIF rate.\u00a0<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559685&quot;:0,&quot;335559737&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559685&quot;:0,&quot;335559737&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">If you are in need of a fulfillment partner <\/span><a href=\"https:\/\/michaeljbrumm.com\/dcl-v3\/company\/get-started\/\"><span data-contrast=\"none\">reach out to us for a quote<\/span><\/a><span data-contrast=\"auto\">. <\/span><a href=\"https:\/\/michaeljbrumm.com\/dcl-v3\/customers\/\"><span data-contrast=\"none\">DCL Logistics works with many high-growth brands<\/span><\/a><span data-contrast=\"auto\"> to scale without sacrificing flexibility, quality, or customer satisfaction.<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559685&quot;:0,&quot;335559737&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:259}\">\u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>OTIF (On-Time In-Full) is a common metric that can be applied across the entire supply chain. It measures if an order was delivered within the expected time frame and if it included every item in the order.\u00a0\u00a0 While OTIF is often used to monitor delivery performance, it is sometimes used as a fulfillment metric to [&hellip;]<\/p>\n","protected":false},"author":11,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"content-type":"","footnotes":""},"categories":[20],"tags":[],"class_list":["post-14986","post","type-post","status-publish","format-standard","hentry","category-fulfillment"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.5 (Yoast SEO v26.9) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>What is OTIF? How it Affects Fulfillment Performance? | DCL Logistics<\/title>\n<meta name=\"description\" content=\"OTIF stands for on-time, in-full. 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How it Affects Fulfillment Performance? | DCL Logistics","description":"OTIF stands for on-time, in-full. It\u2019s a metric that affects your entire supply chain, from procurement to final delivery. Read these tips for improving it.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/michaeljbrumm.com\/dcl-v3\/blog\/fulfillment\/what-is-otif\/","og_locale":"en_US","og_type":"article","og_title":"What is OTIF and How is it Used for Better Fulfillment Performance?","og_description":"OTIF stands for on-time, in-full. It\u2019s a metric that affects your entire supply chain, from procurement to final delivery. 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