How to calculate in full delivery percentage?

How to Calculate On-Time In-Full (OTIF) Percentage

On-Time In-Full (OTIF) performance is a critical metric used to measure a company’s order fulfillment efficiency. It provides insights into the company’s ability to deliver orders on time and in complete quantities. Here’s a step-by-step guide on how to calculate OTIF percentage:

1. Gather Data: Collect data on all attempted deliveries within a specific period, typically a month or quarter. This data should include the following information:

   • Number of orders delivered on time and in full
   • Number of orders delivered on time but not in full
   • Number of orders not delivered on time

2. Calculate Perfect Deliveries: Count the number of orders that were delivered both on time and in complete quantities. This represents the total number of “perfect deliveries.”

3. Calculate Total Deliveries Attempted: Add up the total number of orders that were attempted for delivery, including both successful and unsuccessful deliveries.

4. Calculate OTIF Percentage: Divide the number of perfect deliveries by the total deliveries attempted. Then, multiply the result by 100 to express it as a percentage. The formula is:

OTIF Percentage = (Number of Perfect Deliveries / Total Deliveries Attempted) × 100

5. Interpret Results: The OTIF percentage provides a clear indication of the company’s overall order fulfillment performance. A higher OTIF percentage indicates better efficiency and customer satisfaction. Industry benchmarks vary, but generally, a target of 95% or higher is considered good OTIF performance.

Example:

Let’s say a company attempted 1,000 deliveries in a particular month. Out of these, 900 orders were delivered both on time and in full. The OTIF percentage for that month would be:

OTIF Percentage = (900 / 1,000) × 100
= 0.9 × 100
= 90%

Importance of OTIF Performance:

OTIF performance is a valuable metric for businesses because it provides insights into:

• Customer satisfaction: A high OTIF percentage indicates that customers are receiving their orders as expected, leading to increased satisfaction and loyalty.
• Inventory management: Accurate tracking of complete and incomplete orders helps businesses optimize inventory levels and reduce waste.
• Cost efficiency: Improved OTIF performance can reduce shipping costs and penalties for late or incomplete deliveries.
• Competitive advantage: Companies with high OTIF percentages gain a competitive edge by providing reliable and efficient order fulfillment services.

By regularly monitoring and improving OTIF performance, companies can enhance their supply chain operations, increase customer satisfaction, and drive overall business success.