Comprehensive Definition
OTIF is one of the most demanding and revealing KPIs (Key Performance Indicators) in modern logistics. This indicator measures the supply chain's ability to deliver orders exactly within the agreed timeframe (On-Time) and with all quantities and items requested, without errors or damage (In-Full).
How is it calculated and what does it mean?
OTIF is a binary indicator: if an order arrives on the right day but is missing an item, the score is zero. If it arrives complete but one day late, the score is also zero.
On-Time
Measures the punctuality of dispatch and transport.
In-Full
Measures warehouse effectiveness in picking (error-free) and inventory accuracy.
Importance of WMS for OTIF
In Portugal, major retailers (such as Sonae or Jerónimo Martins) use OTIF to evaluate their suppliers. A high-performance WMS helps elevate this metric through:
Elimination of Picking Errors
The use of radio frequency terminals ensures that the item sent is the correct item.
Expedition Agility
Automates documentation and prioritizes orders with shorter delivery windows.
Traceability
Allows identification of where in the chain a failure occurred, enabling quick corrections.