In the pharmaceutical industry even a perfectly made drug product can fail its purpose if it doesn’t arrive on time and in full. A late or incomplete delivery doesn’t just disrupt schedules. It can delay treatments, break cold chains, and erode trust with healthcare providers.
That’s why the OTIF (On-Time-In-Full) metric is so highly valued. More than just a supply chain KPI, OTIF reflects a company’s ability to deliver on its promises in a sector where timing, precision, and reliability are critical. Getting OTIF right supports not only operational efficiency, but ultimately, patient care.
What is OTIF in the Supply Chain? Defining On-Time In-Full
OTIF is a crucial KPI (Key Performance Indicator) measuring supply chain reliability. A delivery is OTIF only if it meets two criteria:
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On-Time: Arrives within the agreed delivery window, neither late nor too early
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In-Full: Contains the exact quantity and quality of products ordered, with no missing or damaged items
Failure on either front means the delivery is not OTIF, making it a holistic measure of performance.
What OTIF Really Tells You About Your Supply Chain
Achieving high OTIF scores fundamentally impacts a business's standing and bottom line:
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Elevated Customer Satisfaction and Loyalty: Consistent delivery builds trust, fostering retention and turning customers into advocates.
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Enhanced Operational Efficiency: High OTIF signifies streamlined processes, reducing reactive "firefighting" (e.g., expedited shipping) and its associated resource drain.
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Significant Cost Reduction: Failed deliveries incur costs from expedited shipping, administrative overhead, excess inventory, lost sales, and potential financial penalties.
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Strengthened Competitive Advantage: Reliability differentiates a company, attracting new clients and solidifying existing partnerships.
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Improved Supplier and Partner Relationships: Collaborative efforts to improve OTIF strengthen the entire supply network.
Better Data for Decision-Making: OTIF data identifies root causes of failures, enabling targeted improvements in various supply chain functions.
What Is OTIF in Manufacturing and Logistics?
On-Time In-Full (OTIF) is a critical measure of supply chain performance, and while internally it’s often helpful to analyze manufacturing and logistics separately to pinpoint where problems arise, customers only see the company’s overall OTIF. At the end of the day, the customer doesn’t care where the delay happened, they only care whether their order was delivered complete and on time.
OTIF in Manufacturing
Manufacturing OTIF assesses a facility's ability to:
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Produce on schedule: Timely completion of goods based on production plans, managing uptime, labor, and efficiency.
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Produce correct quantity and quality: Delivering exact, defect-free units per specifications.
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Coordinate upstream suppliers: Ensuring timely and complete inbound material deliveries.
Key drivers include accurate demand forecasting, efficient production planning, robust quality control, and strong supplier relationships.
OTIF in Logistics
Logistics OTIF measures the effectiveness of getting finished goods to the customer, encompassing:
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Warehousing operations: Accurate picking, packing, and staging.
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Order fulfillment: Correct items and quantities loaded for shipment.
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Transportation reliability: Carriers meeting delivery windows despite transit challenges.
Key drivers include effective warehouse management systems, reliable carrier performance, accurate documentation, and real-time shipment visibility.
Why it matters:
For customers, these internal distinctions don’t matter — all they see is whether their order arrived on time and in full. That’s why seamless integration and communication between manufacturing and logistics are essential to achieving a high end-to-end OTIF. Internally, analyzing OTIF by function helps identify and fix weak links. But externally, it’s the company’s total OTIF performance that defines customer trust.
Measuring OTIF: Calculations & Formulas
How to Measure OTIF: Data Collection and Calculation
Accurate OTIF measurement requires careful data collection and defined methodology:
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Defining Parameters: Establish clear "on-time" (e.g., delivery window) and "in-full" (e.g., 100% quantity, no defects) definitions.
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Data Collection: Gather delivery specifics for every order: Order ID, ordered/delivered quantities, requested/actual delivery dates/times.
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Assessment: For each delivery, determine if both "on-time" and "in-full" criteria were met (Yes/No).
What Are The OTIF Calculation Formulas?
The standard OTIF calculation formula is widely adopted, with two key variations offering different insights into performance.
1. The "All-or-Nothing" Combined OTIF Formula (Most Common)
This formula treats OTIF as a single metric; a delivery must meet both conditions to be successful.
OTIF Percentage=(Number of deliveries On-Time AND In-Full / Total number of deliveries)×100
Example Calculation:
A company handles 1,500 deliveries in a month. 1,275 of these met both on-time and in-full criteria.
OTIF Percentage=(01275/1500)×100, OTIF Percentage=0.85×100, OTIF Percentage=85%.
This means 85% of deliveries perfectly satisfied customer expectations.
| Order ID | Ordered Quantity | Delivered Quantity | Requested Date | Actual Delivery Date | On-Time Check | In-Full Check | OTIF Status |
|---|---|---|---|---|---|---|---|
| 1001 | 50 | 50 | 2025-05-20 | 2025-05-20 | TRUE | TRUE | Yes |
| 1002 | 100 | 95 | 2025-05-21 | 2025-05-21 | TRUE | FALSE | No |
| 1003 | 200 | 200 | 2025-05-22 | 2025-05-23 | FALSE | TRUE | No |
| 1004 | 75 | 75 | 2025-05-23 | 2025-05-23 | TRUE | TRUE | Yes |
Excel Formulas:
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On-Time Check (Cell F2): =IF(E2=D2, TRUE, FALSE) (Adjust for delivery windows, e.g., =IF(AND(E2>=D2,E2<=D2+2), TRUE, FALSE))
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In-Full Check (Cell G2): =IF(C2=B2, TRUE, FALSE)
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OTIF Status (Cell H2): =IF(AND(F2=TRUE, G2=TRUE), "Yes", "No")
To calculate the overall OTIF percentage:
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Count "Yes" in "OTIF Status": =COUNTIF(H:H, "Yes")
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Count Total Deliveries: =COUNTA(A:A)-1 (excluding header row).
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Calculate OTIF %: Divide "Yes" count by total deliveries, then multiply by 100.
While effective for smaller volumes, this manual method quickly becomes cumbersome with growth.
What is a "Good" OTIF Score? Benchmarks and Expectations
An ideal OTIF score differ widely by industry, customer expectations, product type, and supply chain complexity. However, general benchmarks offer guidance:
| OTIF Score | Performance Level | Implications |
|---|---|---|
| 98-100% | Best-in-Class/World-Class | Exceptional performance, strong competitive advantage, highly reliable supply chain. |
| 95-97% | Competitive/Strong | Meeting most customer expectations, good foundation, continuous improvement needed. |
| 90-94% | Acceptable (Room to Grow) | Customers likely notice occasional issues, potential for minor penalties, needs focus. |
| Below 90% | Needs Significant Improvement | Frequent customer dissatisfaction, high operational costs, at risk of losing business. |
*table taken from "On time in full (OTIF) high level guidence 2022 by BioPhorum
Striving for the highest economically viable OTIF score is a continuous strategic objective.
What Are The Common Challenges in Achieving High OTIF?
Numerous factors impede high OTIF scores, including:
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Inaccurate Demand Forecasting: Leads to stockouts or overstocking.
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Inventory Management Issues: Poor visibility, inaccurate counts, inefficient warehousing.
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Production Delays: Equipment failures, labor shortages, material issues.
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Supplier Performance Issues: Late or incomplete inbound deliveries.
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Transportation and Logistics Disruptions: Unreliable carriers, inefficient routes, last-mile problems, customs delays.
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Data Inaccuracy and Lack of Visibility: Prevents early problem identification and informed decisions.
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Poor Communication and Siloed Departments: Misalignments between teams lead to errors.
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Lack of Standardized Processes: Inconsistent procedures increase risk of errors.
Are There Proven Strategies to Improve OTIF Performance?
Improving OTIF demands holistic, sustained effort across the organization and with external partners:
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Enhance Demand Forecasting Accuracy: Use advanced analytics (AI/ML) and collaborative planning (CPFR); continuously review and adjust.
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Optimize Inventory Management: Implement Lean/JIT principles; use robust tracking (barcode, RFID, WMS); set strategic safety stock.
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Streamline Production Planning and Execution: Utilize APS systems; implement preventative maintenance; ensure skilled workforce.
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Strengthen Supplier Relationships and Performance: Track supplier OTIF; share data/forecasts; diversify supply base.
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Invest in Supply Chain Technology and Visibility: Integrate ERP systems; deploy WMS and TMS; use IoT/telematics for real-time tracking.
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Improve Last-Mile Delivery Efficiency: Employ route optimization software; use digital Proof of Delivery (POD) systems; proactively communicate with customers.
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Implement Robust Root Cause Analysis: Categorize failures (e.g., stockout, carrier issue); use "Five Whys" analysis to identify systemic issues for corrective actions.
Foster a Culture of Continuous Improvement: Conduct regular performance reviews; set clear KPIs; provide employee training and empowerment.