The three measures
| KPI | Measures | Formula |
|---|---|---|
| OTD – On-Time Delivery | Deliveries that arrive on time | On-time deliveries ÷ all deliveries |
| OTIF – On Time In Full | Deliveries that are both on time and complete | Deliveries on time and in full ÷ all deliveries |
| DIFOT – Delivery In Full, On Time | Another name for OTIF | Same as OTIF |
Example: 200 orders in a month. 190 arrived on time; of those, 184 were also complete. OTD = 190 ÷ 200 = 95%. OTIF = 184 ÷ 200 = 92%.
Definitions decide the result
The same deliveries can give very different OTIF figures depending on the definition. Agree in writing:
- On time against what? The date requested by the customer, the confirmed date, or a time window? Measured at dispatch or at delivery?
- In full by order, order line or unit? An order with one missing unit out of 100 fails OTIF at order level but scores 99% at unit level.
- Exclusions: customer-caused delays, agreed partial deliveries, force majeure.
- Data source: which system's timestamps and which carrier events count.
OTIF in a 3PL relationship
A warehouse controls some, but not all, of what OTIF measures. A fair set of KPIs combines:
- Dispatch on time – orders received before the agreed cut-off leave the same day or within the agreed time.
- Order accuracy – the right items and quantities are picked and packed.
- Inventory accuracy – the system balance matches the physical stock, so orders are not accepted for goods that do not exist.
- Carrier performance – delivery from the warehouse to the recipient, followed with the carrier.
These belong in the service level agreement – see SLAs and KPIs. For what decides delivery accuracy on the warehouse floor, see delivery accuracy.
Why OTIF matters in B2B
Retailers and distributors plan their own operations around deliveries. Large retail customers often follow up suppliers on OTIF, and some apply penalties when targets are missed. Planned deliveries and clear order data make a high OTIF easier to reach – see planned B2B deliveries.
Frequently asked questions
What is a good OTIF score?
There is no universal benchmark – it depends on how strictly "on time" and "in full" are defined and on the industry. Agree the definition first, then set targets based on your own baseline.
Is OTIF the same as DIFOT?
In practice yes; DIFOT (Delivery In Full, On Time) is a common name for the same idea. What matters is the exact definition both parties use.
Does the 3PL control OTIF alone?
No. Late inbound deliveries, missing stock, late orders and carrier delays all affect it. A fair KPI separates what the warehouse controls (on-time dispatch, order accuracy) from what it does not.
Short definitions in the glossary: OTIF – On Time In Full · OTD – On-Time Delivery · DIFOT – Delivery In Full, On Time
This page gives general information about logistics terms. It is not legal, customs or tax advice, and it does not describe the terms of any specific agreement with Karlholm Logistics.