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Home/Blog/Glossary/On-Time In-Full (OTIF): Formula and Worked Example
GlossaryProcurement encyclopedia

On-Time In-Full (OTIF): Formula and Worked Example

Define OTIF at the order level, avoid double-counting failed orders and use the result to investigate supplier exceptions.

Jainul Vaghasia/Published June 6, 2026/Updated September 4, 2026/3 min read

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Contents

  1. Define the rules before reporting a percentage
  2. Worked example with overlapping failures
  3. Choose an action from the failures
  4. Preserve the evidence in the order history
  5. Related
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On-time in-full (OTIF) is the percentage of orders that meet both the agreed delivery-time rule and the agreed completeness rule. An order passes only when both conditions are true for that same order.

OTIF = orders on time AND in full / eligible orders × 100

Define the rules before reporting a percentage

Record the requested or agreed delivery window, which event counts as arrival, how partial shipments are treated and the completeness requirement. Use a named version of the promise date: silently moving the deadline after a delay can make poor delivery performance disappear.

For unit-count goods, “in full” may mean every requested unit of every line. Catch-weight contracts or other agreements may define explicit tolerances. A tolerance is a contract or policy choice; a generic 90% or 95% delivered threshold is not a universal OTIF standard.

If substitutions, customer cancellations or buyer-requested date changes are excluded, keep an exclusion reason and show how many orders were removed from the denominator. Retailer compliance programs have their own current definitions and charges; use the actual supplier agreement rather than an industry-wide penalty estimate.

Worked example with overlapping failures

Suppose 36 orders are measured. Of those, 34 are on time, 33 are in full and 32 satisfy both.

OutcomeOrders
On time and in full32
On time but short2
Late but in full

Read before ordering

A dense operator briefing for teams that need sharper buying, cleaner supplier follow-up, and fewer expensive surprises.

1
Late and short1
Total36

There are four failed orders: two short-only, one late-only and one failing both. Therefore OTIF is 32 / 36 = 88.89%.

The on-time rate is 34 / 36 = 94.44%; the complete-order rate is 33 / 36 = 91.67%. Multiplying those two rates does not generally produce OTIF because late and short events may overlap. A unit fill rate is a different denominator again.

At two orders a week, four failures in 36 orders represent four failures over roughly 18 weeks. They do not imply a failure every nine days or a fixed number of emergency buys: the consequence of each failure depends on its size, timing and the stock available.

Choose an action from the failures

Review the actual failed orders. One missing low-use item and a late delivery of a critical ingredient can have very different operational effects despite both failing OTIF.

For each exception, ask:

  • Was the original order clear, and did the supplier accept the date?
  • Was the shortage a pack-size mismatch, a substitution or unavailable stock?
  • Did a revised ETA reach the receiver and buyer in time?
  • Was there an unresolved balance or duplicate replacement order?
  • What was the impact on customers, production or rush costs?

Supplier alternatives, a changed delivery schedule or a specific buffer may be appropriate. A low OTIF percentage alone does not calculate the right safety-stock quantity, and a high percentage does not guarantee the next delivery.

Preserve the evidence in the order history

A living purchase order keeps original requests, accepted changes and receipts connected. LineNow's PO tracking workflow provides the supplier conversation and dated activity needed to investigate exceptions. Demonstrate the relevant date and quantity fields and the report or export before relying on an automatic OTIF score.

Keep the measurement rule stable over time and report the sample size. Compare a supplier's current performance with its own prior periods and the needs of the items it supplies, rather than with unsupported universal benchmarks.

Related

  • Fill rate
  • Lead time
  • Safety stock
  • Supplier management
OTIFon-time in-fullOTIF formulaOTIF supplier metricon-time in-full procurementsupplier OTIFOTIF benchmarksOTIF vs fill ratesupplier performance metricsOTIF retail compliance

Written by Jainul Vaghasia

Jainul Vaghasia builds LineNow, the purchasing and inventory platform for SMBs. He writes from operator interviews, customer implementations, and the live purchasing workflows LineNow runs for restaurants, retailers, and ecommerce brands.

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Purchase Order Tracking TemplateUse a blank CSV and a worked price-change and partial-delivery example to reconcile the quantity still due.What Is a Living Purchase Order?Understand how a living PO preserves the original request, accepted changes, receipts and invoice context while keeping review and financial controls.Supplier Backorder Management: Quantity, Cost and Follow-UpCompare waiting, backup suppliers and substitutes against the same uncovered quantity. Track partial deliveries and resolve the original purchase commitment.ERP and Supplier Execution: Assign the Purchasing HandoffsDecide when a supplier workflow complements ERP purchasing and define ownership of POs, revisions, receipts, bills and failed transfers.
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