OTIF (On Time In Full) measures the percentage of deliveries that arrive on time (within the contracted appointment window) and in full (exact quantity and mix). Formula: on-time in-full deliveries ÷ total deliveries × 100. Mexican retail typically requires 85–95% depending on chain, and penalizes misses with automatic chargebacks of 1.5–3% of order value.
The real cost is double: the customer deduction plus extra transport spend (reconsignments, urgent freight) to compensate failures. The full definition lives in the OTIF glossary; here the focus is calculating, disputing, and improving it with evidence.
- MX retail threshold
- 85–95%
- typical chargeback
- 1.5–3%
- per order
- Binary
- deduction + freight hit
- 2×
Cluster: OTIF glossary · dispute deductions · audit an invoice · charges dictionary.
What OTIF is in retail
OTIF is not fill rate. Fill rate allows proportional partial deliveries; OTIF requires each order to hit appointment window and exact quantity. That is why a supplier can show good fill rate and low OTIF at once.
Chains use OTIF to rank suppliers and apply automatic chargebacks. The commercial agreement defines what counts as “on time” and which evidence the DC accepts.
How it is calculated (and disputed)
An order of 100 cases delivered with 98 cases within appointment counts as a full In Full fail in most schemes. OTIF is binary per order, not proportional.
KPI
OTIF is binary per order
On time
inside window
DC clock or your GPS?
In full
exact quantity
98 of 100 = fail
OTIF
OK ÷ total × 100
Binary per order
Double hit
Retail deduction (1.5–3%) + urgent freight cost to compensate.
Three places OTIF gets disputed
Select a step to see detail
Step detail · 01
On time
Definition
| Dispute point | Typical ambiguity | Winner without contract |
|---|---|---|
| On time | Granted vs requested appointment? | Whoever deducts |
| Clock | Customer DC vs your GPS? | Customer clock |
| In Full | Dock count vs your POD? | Dock count |
The double hit of low OTIF
Direct chargeback. 1.5–3% of the order applied at payment, proof burden on the supplier. How to reverse: retail deductions: how to dispute them.
Logistics overrun. Urgent freight, reconsignments from the charges dictionary, and extra partial deliveries inflate transport spend 5–10% on chronically low OTIF accounts.
Worse: you pay the retail chargeback and, if the carrier caused the miss, you also pay reconsignment without charging back. Invoice audit closes that loop.
Raise OTIF with evidence
Route heroics do not scale; a per-delivery file does. Four operational levers with measurable return.
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Detalle del paso · 01
Managed appointments, not suffered ones: validate request before the trip
Delivery
OTIF file
Appt
Confirmed
Route
4 h alert
POD
Time + count
Dispute
File ready
What OCL runs on OTIF
OCL Cargo is an autonomous shipper-side TMS. It uses automated screen control (computer use) to manage retail portal appointments when there is no integration. The Audit Agent reconciles POD, appointment, and carrier invoice before pay: audit before pay. It can stamp invoice and Carta Porte when applicable. It coexists with your team; humans handle exceptions, the agent documents 100% of routine volume.
6–8 week pilot
Take 100 retail deliveries with OTIF chargebacks last quarter. Baseline: OTIF measured only by customer, MXN deducted, and clarification hours. Deploy digital POD and appointment alerts; agent audits carrier invoice 100%. Pattern: recover 5–7% of logistics spend when the miss was the carrier’s but billed as yours.
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Detalle del paso · 01
Customer OTIF vs file-reconstructed OTIF
Key takeaways5 points
- OTIF = on-time AND in-full deliveries ÷ total × 100; binary per order.
- MX retail expects 85–95%; miss triggers 1.5–3% order chargeback.
- Double hit: customer deduction + urgent freight to compensate.
- Three disputes: “on time” definition, clock source, In Full count.
- Per-delivery file before pay and before dispute; OCL automates it.
Is your OTIF measured only by your customer, with no file of your own?
Related reading
Frequently asked questions
The common range is 85–95% with tiered chargebacks below threshold. The exact number and operational definition live in each chain’s commercial agreement: read it before signing, not after the first deduction.
No. Fill rate measures completeness only (proportional); OTIF (On Time In Full) requires complete AND on time (binary per order). You can have 98% fill rate and 80% OTIF.
The KPI is company-wide; the evidence is logistics. Without a per-delivery file, sales disputes chargebacks blind.
In most retail schemes, no: OTIF is binary per order. Delivering 98 of 100 within appointment is still a full In Full fail.
Confirmed appointment, arrival log (GPS or time stamp), POD with time and piece count. Without your own file, the customer DC clock and count win.
Yes. The autonomous TMS builds a per-delivery file (digital POD, appointment, risk alerts). The Audit Agent crosses carrier failures against invoice before pay. Pilot 6–8 weeks.