On‑Time In‑Full (OTIF) Shipping: Your Guide to Reliable Deliveries

Delivering every order on time and in full isn’t just good practice, it’s essential. OTIF shipping (On-Time, In-Full) sets the standard for consistency, customer trust, and operational excellence.

But what exactly does OTIF mean? How do you calculate it, and what steps can you take to improve it? Whether you’re handling 100 or 2,500 orders a month, this guide will help you understand, measure, and optimize your OTIF performance to reduce errors, improve delivery reliability, and increase customer satisfaction.

What OTIF Shipping Means?

Before diving into strategies, let’s clarify what the standard OTIF definition is and why combining speed and accuracy is critical for supply chain efficiency.

OTIF shipping, also known as On-Time, In-Full is a method to calculate the success rate of your shipment and its delivery. It helps determine how many packages are reaching your customer in the stipulated time and in perfect condition. 

On‑Time Criteria

An order counts as on‑time if it arrives within the promised window—you set the promised date and confirmed delivery time, and carriers must meet it. Defining a firm deadline (for example, by 8 PM) aligns your supply chain operations and reduces supply chain bottlenecks.

In‑Full Criteria

In‑full delivery means the customer receives every item they ordered in the correct quantity. If one SKU is missing, the order fails the OTIF test. This metric highlights issues in inventory management, warehouse management system errors, or supplier performance shortfalls.

Why do both matter?

OTIF measures both on time and in full delivery, ensuring you keep your delivery promises. Focusing on one without the other leads to supply chain disruptions and customer dissatisfaction.

Calculating Your OTIF Rate

Accurately OTIF calculated gives you the baseline to improve OTIF and your delivery process.

Define Your Delivery Window

Document what on time delivery means: by noon, 8 PM, or within a two‑hour slot. Clear definitions reduce supply chain disruptions and align all supply chain partnerships.

Gather Shipment Data

Collect total orders shipped (e.g., 1,500) and those delivered on time and complete (e.g., 1,350). These numbers feed into your OTIF formula.

For example, (1,350 / 1,500) × 100 = 90%.

Segment Your Results

Break down OTIF performance by product line, warehouse, or carrier. This helps you see where supply chain processes excel or need fixes.

Share and Act

Display weekly OTIF dashboards with your team, logistics providers, and suppliers. Transparency drives accountability and improves supply chain efficiency.

The Impact of OTIF on Your Store

A high OTIF score delivers concrete benefits across supply chain processes and logistics processes. It is more than a number, it is a competitive advantage. 

Boosting Repeat Purchases

Meeting your OTIF targets translates to increased customer satisfaction. Studies show 84% of shoppers weigh delivery performance when deciding to reorder—a clear driver of customer retention.

Avoiding Penalties

Major retailers and logistics providers can fine 3–5% of order value for OTIF misses. Even eCommerce businesses face low OTIF scores fees and chargebacks. A strong OTIF rate keeps those costs down.

Improving Inventory Visibility

OTIF data reveals which SKUs and suppliers falter, letting you adjust inventory levels and distribution centers before stockouts. This insight supports supply chain visibility and smoother order fulfillment.

Streamlining Operations

Tracking OTIF exposes supply chain challenges—from production delays to logistics companies’ inconsistencies. By fixing specific steps, you boost operational efficiency and avoid supply chain complexity.

Improve Customer Retention

Shoppers say delivery performance influences their decision to reorder. Meeting OTIF expectations boosts customer satisfaction, strengthens brand loyalty, and helps you stand out in a crowded market.

Avoid Costly Penalties

Low OTIF scores can trigger penalties—especially if you sell through major retailers or marketplaces. Some logistics providers charge 3–5% of the order value for OTIF failure

6 Benefits of Tracking OTIF Shipping

Using OTIF as a key performance indicator unlocks insights across your supply chain management.

1. Supplier Performance Insights

Score each vendor on their supplier's ability to meet time and in full OTIF standards. Replace or renegotiate with underperformers based on data, not guesswork.

2. Healthier Inventory Levels

Trigger replenishment when OTIF dips, preventing over‑stock or stockouts. This proactive supply chain operations tactic cuts carrying costs.

3. Reduced Rush Costs

Missed OTIF targets often lead to expedited shipping fees. Monitoring OTIF trends helps you identify potential delays before they incur extra expense.

4. Identifying Process Gaps

OTIF breakdowns pinpoint whether issues lie with suppliers, your warehouse management system, or shipping services, letting you apply targeted fixes.

5. Data‑Driven Investments

Concrete OTIF metrics justify technology like real time visibility platforms and multi-carrier shipping APIs, ensuring every dollar spent lifts your supply chain performance.

6. Enhance Supply Chain Visibility

Tracking OTIF uncovers where things go wrong—be it inventory levels, shipping delays, or supplier performance. With real-time visibility, you can proactively prevent order fulfillment issues before they snowball.

Note: A high OTIF score of 95–99% signals top‑tier fulfillment. Smaller stores often settle for 80–90% initially, then aim higher.

Common Pitfalls That Hurt Your OTIF

OTIF issues often stem from vendor stockouts, courier delays, manual errors, demand spikes, and lack of visibility. Using tools like barcode scanning, multi-carrier shipping, and real-time tracking can help prevent delays and improve delivery accuracy.

Recognizing these issues helps you improve OTIF performance.

7 Tactics to Lift Your OTIF Score

To improve your OTIF score, align on clear delivery definitions, automate fulfillment with a warehouse management system, and use multi-carrier shipping tools to avoid delays. Add real-time tracking for better visibility, forecast demand accurately, hold regular supplier reviews, and keep customers informed to maintain trust and satisfaction.

1. Establish a Clear OTIF Definition Across Your Supply Chain

Start by creating and sharing a consistent definition of OTIF with everyone involved—suppliers, carriers, and internal teams. Make sure your contracts, onboarding guides, and SOPs explain what “on time” and “in full” mean in practical terms. For example, if “on time” means delivery by 8 PM on the promised date and “in full” means all SKUs and quantities delivered, then everyone from your warehouse team to third-party logistics providers should align to that standard. 

2. Use a Warehouse Management System to Eliminate Manual Errors

A warehouse management system (WMS) automates core logistics processes like inventory tracking, order picking, and shipping label generation. These systems reduce manual handling errors—like shipping the wrong item or missing an SKU. When your WMS integrates with barcode scanners and your eCommerce platform, it also improves inventory visibility, so you know exactly what’s in stock and ready to ship. 

3. Compare Shipping Options with a Multi-Carrier API

Depending on a single courier is risky—especially during peak seasons or service disruptions. With a multi-carrier shipping API, you can automatically compare rates, delivery times, and reliability for every order. If your preferred carrier is running late or costs spike, you can switch instantly to a better option. 

4. Enable Real-Time Tracking to Increase Visibility

Delays happen—but finding out too late damages customer trust. Real-time tracking tools give you end-to-end visibility on every shipment, allowing you to monitor delivery status, identify bottlenecks, and proactively respond to problems. 

5. Improve Demand Forecasting to Prevent Stockouts

When you can anticipate spikes in customer demand—like during Black Friday or a product launch—you can stock up in advance and plan warehouse labor. Use historical sales data, market trends, and seasonal patterns to better forecast demand. Accurate forecasting helps you maintain inventory levels.

6. Hold Monthly Scorecard Reviews with Partners

Transparency and accountability drive performance. Set a recurring schedule—weekly or monthly—to review OTIF data with your team, suppliers, and logistics providers. Use scorecards to track OTIF by SKU, supplier, or carrier. Celebrate high performance, identify patterns in low OTIF scores, and work collaboratively on improvements. 

7. Keep Customers Updated and Engaged

Even the best systems can’t prevent every delay. What matters is how you respond. Communicate with customers if there’s a late delivery—email or SMS updates with a new ETA show professionalism and build trust. Offering a small gesture, like a discount or free shipping on the next order, can turn a negative experience into increased customer satisfaction and long-term loyalty.

Tech Tools That Supercharge OTIF Shipping

The right software transforms supply chain efficiency. Here are the software/solutions that can help you supercharge your OTIF shipping. 

ERP/MRP Systems

Integrate orders, inventory, and shipping data on one platform. Companies report a 39% jump in on time delivery after ERP implementation.

Shipping APIs

Automate rate checks, calculate OTIF, and label printing across 550+ couriers—no manual data entry needed.

Visibility Platforms

Supply chain visibility solutions feed you live shipment data, cutting OTIF fines by up to 30%.

Analytics Dashboards

Filter OTIF metrics by day, SKU, or carrier. Drill into trends to optimize supply chain operations.

Fulfillment Automation

Robotic sorters and conveyors can speed up picking and packing by 50%, slashing errors and boosting your OTIF rate.

Tracking and Reporting Your Progress

Regular measurement turns OTIF shipping into a strategic asset. You know the numbers, you know the way forward! 

Daily Dashboards

Show OTIF % by shift, warehouse, and carrier on screens in your operations area to spot issues at a glance.

Vendor Scorecards

Rank suppliers on their OTIF performance. This data drives negotiations and improvements in supply chain partnerships.

Customer SLAs

Publish your OTIF goals on your site (e.g., “95% of orders on time and complete”). This builds trust with shoppers.

Automated Alerts

Trigger notifications when OTIF dips below your target so you can act immediately and avoid delivery process failures.

Regular Reviews

Make OTIF a staple of weekly or monthly process‑review meetings. Use each dip as a chance to root out causes and refine supply chain processes.

Next Steps to Improve OTIF Shipping

Improving OTIF shipping doesn’t require an overhaul—just small, consistent steps. By measuring, aligning, and acting, you can reduce costs, improve delivery performance, and keep customers coming back.

Measure Today

Start by tracking your OTIF score using simple tools like spreadsheets or your order management system. You don’t need complex software to begin understanding your current performance.

Set Targets

Aim for an initial OTIF rate of 80–90%. Once you’ve stabilized operations, gradually raise your targets as your processes improve.

Adopt Visibility

Use real-time tracking and basic analytics to monitor shipments and identify issues early. Even entry-level tools can improve delivery accuracy and planning. With Easyship, you can track and analyse your sales and delivery that can give you an insight into how your OTIF is. 

Align Partners

Ensure your suppliers, logistics providers, and team are working from the same OTIF definition and performance goals. Everyone should know what success looks like.

Iterate

Review OTIF data weekly. Fix bottlenecks quickly, adjust where needed, and recognize progress to keep momentum going.

Keep Your OTIF Score at an all time High with Easyship!

Easyship’s multi-carrier solution is not only here to help you get the best courier options for your business but also acts as a one-stop solution for your shipping tracking, and analytics. All you have to do is sync your store with Easyship and et voila! you will your performance right there on your dashboard. 

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Use this information to know what your OTIF score is and how you can make it better with each growing shipment. 

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