What is OTIF (On-Time In-Full)?
OTIF — On-Time In-Full — is a composite logistics KPI that measures whether an order was delivered at the committed time, with the complete quantity, and without damage or substitution. A shipment only counts as “OTIF” if it passes both the on-time test and the in-full test. Retailers, FMCG shippers, and pharma manufacturers treat OTIF as the headline metric for supply-chain reliability — and chargebacks when it slips.
How does it work
OTIF is calculated per delivery window, then aggregated weekly or monthly. For every shipment, two gates are evaluated independently:
- On-Time — did the truck arrive inside the agreed delivery window (often a 2-hour slot, sometimes a specific day)? Late or early arrivals both fail.
- In-Full — was the quantity delivered equal to the quantity ordered, with no damage, no rejected pallets, and no SKU substitutions?
Only shipments that pass both gates count toward OTIF. The formula is simple: OTIF % = (shipments passing both tests) / (total shipments) × 100. Most CPG-to-retail contracts require 95%+ OTIF; dropping below triggers fines or delisting. Modern OTIF tracking requires real-time ePOD, slot-booking integration, and automatic reconciliation against the original purchase order.
Why it matters
Retailers like Walmart, Tesco, and Carrefour enforce OTIF with chargebacks that can consume 1-3% of net revenue for non-compliant suppliers. Beyond penalties, poor OTIF triggers promotional voids, shelf outages, and eventual delisting. For FMCG and pharma, OTIF is also a leading indicator of working-capital efficiency — every failed delivery means safety stock grows, distribution cost rises, and CX scores fall. Operators who lift OTIF from 88% to 95%+ typically recover margin of 1-2% at the P&L line, without touching pricing.
Where it shows up in logistics
| Scenario | OTIF sensitivity | Typical target |
|---|---|---|
| FMCG/CPG to modern trade (hypermarkets) | High — chargebacks apply | 98%+ |
| Pharma to hospitals & pharmacies | Very high — regulated | 99%+ |
| B2B industrial distribution | Medium-high | 95% |
| Quick commerce (10-min) | Replaced by SLA adherence % | 95-98% |
| 3PL contract SLA compliance | High — contractual | 95-97% |
How Shipsy approaches OTIF
Shipsy treats OTIF as a real-time metric, not a month-end report. Astra, the planning agent within AgentFleet, sequences depots and trips so slot windows are hit the first time. Clara sends proactive ETA updates to consignees when Astra detects a slip risk, preserving the window or renegotiating early. Nexa reconciles delivered quantity against the purchase order line-by-line, catching shorts and damages before the buyer raises a dispute. Atlas, Shipsy’s autonomous control tower, flags in-flight OTIF risk shipment-by-shipment so operators intervene hours before the window expires — not after a chargeback lands.