OTIF (On-Time, In-Full): A Key Metric for Supply Chain Success

What Is OTIF and Why Does It Matter?

OTIF—short for “On-Time, In-Full”—is one of the most critical metrics in modern supply chain performance. It measures whether an order was delivered to a customer exactly when expected and with every item they requested.

Sounds simple. But in reality, OTIF is where order accuracy, processing speed, fulfillment capacity, and customer satisfaction all converge.

A high OTIF score =

• Faster, more reliable deliveries

• Fewer customer complaints

• Lower penalty fees

• Greater customer trust and retention

For manufacturers and distributors, improving OTIF is both an operational goal and a competitive advantage.

Breaking Down OTIF: What It Measures

Let’s take it piece by piece:

On-Time:

The order is shipped and delivered according to the customer’s expected delivery window (not just when you ship it, but when they expect to receive it).

In-Full:

All products, in the correct quantities and configurations, are included in the delivery. No backorders. No substitutions.

To meet OTIF, both conditions must be true. An order that’s complete but late? Not OTIF. On time but missing an item? Also not OTIF.

Why OTIF Is a KPI to Watch in 2025

As supply chains grow more complex and customer expectations rise, OTIF is emerging as a core performance benchmark. In industries like retail, construction, automotive, and healthcare, it can even impact vendor scorecards and future contract renewals.

A few reasons OTIF is more important than ever:

• Just-in-time production leaves little room for error

• Customer loyalty is increasingly experience-driven

• Supply chain resilience requires consistent execution

• Penalties for non-compliance are increasing in many sectors

According to McKinsey, companies with OTIF above 95% outperform peers in customer retention and revenue per customer.

The Role of Order Processing in OTIF

While OTIF is often viewed as a logistics metric, it starts far earlier in the process—at order entry.

Here’s how upstream inefficiencies can tank your OTIF performance:

• Slow manual processing delays fulfillment

• Incorrect SKUs or quantities lead to missed items

• Lack of validation results in shipment holds or adjustments

• Missed exceptions create downstream disruptions

Your fulfillment team can only be as accurate as the orders they receive.

Automation as a Driver of OTIF Improvement

Improving OTIF isn’t just about faster trucks or bigger warehouses—it starts with accurate, automated order capture.

Here’s how automation helps:

✅ Faster Order Processing

Automated systems ingest and process orders immediately upon receipt—cutting hours (or days) off cycle time.

✅ Higher Order Accuracy

Data is validated against ERP records, pricing catalogs, and customer terms—reducing errors before they happen.

✅ Fewer Exceptions

Automation flags issues proactively, so teams can resolve them before orders are delayed.

✅ Real-Time Visibility

You gain better insight into order flow and fulfillment timelines, which enables smarter scheduling and customer communication.

Real-World Impact: Conexiom Customers Improving OTIF

Many Conexiom customers report dramatic improvements in OTIF within months of automating order entry.

One global distributor saw:

• 85% reduction in order processing delays

• 60% drop in fulfillment-related customer complaints

• OTIF improvement from 88% to 97% in under six months

It wasn’t a warehouse issue. It was a process issue—solved by getting orders right the first time.

Benchmarking Your OTIF Score

Here’s a rough industry guide:

If you're under 90%, it's worth examining upstream processes—not just logistics—to find the root cause.

How to Start Improving OTIF

Here are some actionable steps:

1. Map Your Current Order-to-Delivery Workflow
   Identify where delays or inaccuracies occur—from intake to fulfillment.

2. Track OTIF by Customer Segment
   See where you're consistently underperforming and why.

3. Automate High-Volume, Repeatable Orders
   Start with the customers that generate the most orders or the most issues.

4. Standardize Data Inputs
   Use intelligent automation to ensure incoming POs are complete, correct, and validated.

5. Monitor Exceptions Closely
   Not all orders are equal. Track and resolve exceptions with SLA-based workflows.

Final Word

Improving OTIF isn’t about working harder—it’s about working smarter. When your order process is manual, fragmented, and error-prone, even the best logistics team can’t save your OTIF score.

With the right automation in place, you get orders processed faster, more accurately, and with fewer exceptions—setting the stage for better fulfillment and stronger customer relationships.

OTIF isn’t just a supply chain KPI. It’s a signal of trust. Let’s help you get it right.

Want to improve your OTIF score without overhauling your entire operation? Learn how Conexiom automates the order process to improve fulfillment performance from Day 1.