On time, in full (OTIF) supply chain: deliver or pay the price

The high stakes of "almost" on time

Have you ever received a five-figure penalty because your shipment arrived on Tuesday instead of Monday?

Welcome to the world of OTIF supply chain management, where "close enough" isn't just disappointing, it's expensive.

OTIF — on time, in full — isn’t just another KPI. It’s the performance metric separating profitable supply chains from those drowning in chargebacks. Miss it and you're not just dealing with numbers on a spreadsheet; you’re watching dollars walk out the door and trust erode.

At its core, OTIF asks one question:

Did the product arrive exactly when promised, with everything ordered, in perfect condition?

Sounds simple. But when systems lag, processes break or teams scramble, that one question can turn into your biggest risk.

OTIF is the new baseline

Gone are the days when hitting 95% felt like a win. Now, OTIF reviews aren’t quarterly discussions, they’re weekly fire drills

The reality?

• E-commerce has redefined the term “fast.”
• Retailers expect perfection.
• Your warehouse is maxed out.
• Your systems?  Outdated at best.

 And when you’re chasing near-impossible targets with a stretched team and legacy tools, even small misses can spiral into big problems.

 

Rising retailer expectations and complexity

Walmart moved the goalposts—again. Now it’s 90% on-time and 95% in-full. Target and Kroger aren’t far behind. These aren’t suggestions. They are expectations.

Every supply chain manager feels the pressure. Your retail buyers demand perfection while your customer service team forwards angry emails from shoppers looking for their orders. Meanwhile, consumers want it all:

• 72% expect same-day delivery
• 51% of Millennials and Gen Zs demand it
• $400,000+ median cost just to start offering it
• 79% of businesses say same-day spikes operating costs
• And only 19% of shoppers are willing to pay extra

Let that sink in.

You’re footing the bill for the speed your customers expect but won’t pay for.

And that’s before we get to last-mile complexity, SKU overload or the daily chaos in your warehouse.

The real challenge?

Meeting these conflicting demands simultaneously.

Your retail partners penalize OTIF failures with chargebacks, while consumers increasingly abandon brands that can't deliver promptly. You're expected to achieve perfection, immediacy and profitability all at once.

 

The financial reality: OTIF penalties that hurt

Miss a delivery window?

That’s not just a dent in your metrics; it’s money out of your pocket.

• Walmart charges 3% of the item’s value
• Target? 5%
• Kroger? $500 per late order

Still thinking “it’s just a small percentage”?

Think again.

These aren’t soft costs; they’re direct hits to your bottom line.

For a mid-sized supplier shipping $80M/year, that’s up to $4 million in penalties. Larger players lose even more, up to $11 million in OTIF fines and associated transport costs.

And fill rate shortages sting too—retailers charge 5–15% of merchandise value for short or unauthorized subs. Add in 10–25% in supply chain cost increases due to inefficiencies and the math gets uglier. 

 

Operational and reputational risks: The OTIF domino effect

Miss a delivery window and watch the cascade begin:

• Your shipping team scrambles to book emergency freight at premium prices
• Your operations manager approves overnight shipping for orders that should have used standard ground
• Your finance team grapples with unplanned expenses that weren't in the budget
• Your sales team faces the risk of customers changing their minds or choosing alternatives

All while your transportation budget goes up in flames and your brand takes the fall.

OTIF failures cost more than money. They cost credibility—and shelf space. And rebuilding that trust? It takes months, not days.

Want to break the cycle?

Read our blog on how technology improves performance and see how integrated supply chain tech reduces risk from warehouse to final mile.

 

Smarter tools for a tighter OTIF game

You don’t need more spreadsheets.

You need visibility, control and speed—without chaos.

Here’s how our platform at Infios helps teams turn OTIF from a liability into a competitive edge:

• Freight Visibility in Real Time 
  Track every shipment, every order, every item—from origin to delivery. Spot problems before they escalate.
• Order Commander 
  Manage everything in one place. Filter by SKU, control fulfillment flow, select carriers based on real-time data and dodge unnecessary penalties.
• Document Wrangler 
  Instant access to all your shipping docs—PODs, invoices, bills of lading. No more frantic searches or compliance nightmares.
• Predictive Issue Prevention 
  Catch documentation gaps and shipment risks before they trigger chargebacks. Let automation handle the routine while your team focuses on exceptions.
• The Ultimate Control Tower
  Switch views between items, orders and loads. Track same-day delivery progress by the minute. Complete visibility. Total control.

 

What OTIF really says about you

Ever wonder how you’ll explain OTIF penalties to your boss?

The truth: Your delivery metrics tell a story.

Here’s the truth: Your metrics tell your story.

• Hit your OTIF goals? You earn trust, shelf space and priority.
• Miss them? You spend more, gain less and play constant defense.

We’ve seen the difference visibility makes.

Our users don’t just react, they predict. They manage proactively, reduce costs and turn logistics into a strength, not a stressor.

You can, too.

Infios gives you visibility that prevents problems—not just reports them after the fact. So you don’t dread those compliance calls. You walk into them confident.

Our users stop reacting and start predicting. They manage proactively, reduce costs and turn logistics into a competitive advantage.

 

Make OTIF your advantage

There’s a better way to manage performance and it starts with smarter visibility.

Take the first step today. Stop talking about penalties. Start talking about wins.

 

Join the logistics teams turning OTIF into a competitive edge they’re proud to showcase. Schedule an Infios demo today