How to Calculate your service level


It is a performance indicator (KPI) used to determine and quantify the overall efficiency of a company’s supply chain. Its data are very useful for the supply chain manager. Indeed, this indicator gives you the possibility to measure and calculate your client’s satisfaction rate in relation to its initial expectation. Its optimization is important in order to improve your logistics performance.

In other words, “it is a percentage of products delivered on time in the required references and quantities, compared to the request expressed by the customer”. The service level is one of the methods to anticipate a shortage of stock during the next replenishment cycle and thus limit the default of deliveries and sales.


What does OTIF mean for a manufacturer?

OTIF stands for “On-Time In-Full” and refers to the percentage of orders that are delivered on time and in full (i.e., with all items and quantities as specified in the order). This is a common metric used in inventory and manufacturing to measure the efficiency and reliability of the supply chain. A high OTIF percentage indicates that orders are being fulfilled efficiently and consistently, while a low OTIF percentage may indicate issues with the supply chain or production processes. OTIF is often used as a key performance indicator (KPI) for assessing the performance of suppliers and logistics providers, as well as for identifying areas for improvement in the supply chain.


Service level on Industrial Data Performance


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