On-Time In-Full (OTIF) – The End-to-End Service KPI that Exposes Flow, Accuracy, and Control

This topic is part of the SG Systems Global regulatory & operations glossary.

Updated October 2025 • Service Level & Fulfillment Quality • MES, WMS, Scheduling, QA

On-Time In-Full (OTIF) is the “no-excuses” customer service metric that asks a single question: did the customer receive exactly what they ordered, on the date promised, in the quantity committed—with no substitutions, shortages, or delays? Unlike internal efficiency metrics, OTIF is judged at the point of truth, where product leaves your control and meets your customer’s expectations. It is unforgiving by design. If a shipment is one day late, or one case short, it misses. That brutality is useful: it forces cross-functional alignment between demand planning, production execution, quality release, labeling, and warehouse fulfillment. Achieving sustained OTIF requires synchronized controls across MES, WMS, and quality governance, with digital evidence in the eBMR and inventory systems to support disputes, recalls, and continuous improvement.

“OTIF is the perfect order score: one late line, one short case, one mislabel—zero.”

1) What OTIF Measures (and How to Define It)

OTIF is deceptively simple: a shipment counts only if it is delivered on time and in full. But “on time” and “in full” must be defined precisely to avoid gaming and confusion. Most organizations tie “on time” to the customer’s requested delivery date (RDD) or a confirmed promise date. Some define a small window (e.g., same day or, for retail, the booked slot), while others allow a tolerance. “In full” should reference the order line quantity—not the order header—because line-level shortages are what customers feel. Partial shipments that meet a negotiated plan can be counted, but only if the plan was committed before the promise date. To prevent “ship anything” behavior, the definition should also require identity and label correctness verified via barcode/label verification, and eligibility for finished goods release under quality control. When OTIF is computed consistently at the order-line level with clear rules, it becomes a trusted lens on the reliability of the whole system from plan to pick to proof.

2) Why OTIF Fails—A System View

Misses rarely originate at the shipping dock. They are failures of synchronization: demand changes not reflected in MRP; job release that floods WIP; upstream quality holds that starve final assembly; label or artwork mismatches caught only at the last station; or inventory inaccuracies that appear during picking. These issues are detectable earlier if the process enforces line clearance, in-process controls, effective-dated instructions from the MMR/MBR, and identity checks via barcode validation. OTIF therefore acts as a composite KPI that integrates planning discipline, execution stability, hygiene in labeling and documentation, and warehouse presentation of materials to the line. When the number drops, the answer is not “push shipping harder,” but “fix the constraints that block on-time, in-full flow.”

3) Foundations—Clean Masters, Clean Inventory, Clean Labels

Reliable OTIF rests on three pillars. First, clean masters: bills, routings, and work instructions governed by Document Control so the shop executes the right version every time; corrections flow via Change Control with risk assessment. Second, clean inventory: accurate balances via cycle counting, disciplined FIFO/FEFO, and trustworthy goods receipt so shortages do not appear during pick. Third, clean labels: approved templates and labeling control so what leaves the dock is what was ordered—with correct claims, UDI/GTIN, lots, and dates—verified through label verification to avoid customer rejections that retroactively kill OTIF. These pillars are prosaic, but they are the difference between heroic expediting and predictable service.

4) Calculating OTIF—Granularity, Scope, and Truth Data

Decide first whether to measure OTIF at the order header or line. Line-level is more sensitive and actionable: a complex order with ten lines and a single short item should fail 0/10 at header level (miss) and 9/10 at line level (the nine that met the promise). Define time basis: delivery timestamp (customer dock scan), shipment timestamp (carrier pickup), or booking slot adherence (retail). Your truth data should come from systems with controlled evidence: shipping confirmations and EDI acknowledgements; lot/serial association from genealogy; and label scans from WMS at pick/pack/ship. Watch out for “split lines” and substitutions: if the customer accepts a change ahead of promise date, it may count; if you unilaterally substitute, it should not. Lastly, document the rules under Document Control and review them in internal audits so the score remains credible across customer segments and seasons.

5) Planning to Hit OTIF—Promise Only What You Can Make

Great OTIF begins when sales promises a date that operations can keep. That requires a current materials and capacity picture. Tie promise logic to MRP and finite capacity constraints, and avoid bookings that assume miracles. As orders convert, release work through job release at the pace the system can complete; dispatch through MES queues rather than spreadsheets; and maintain stability with line balancing and, where product mix is variable, heijunka leveling. Stability upstream prevents downstream chaos at pick/pack/ship that leads to shorts and late trucks.

6) Execution Discipline—Make the Right Things, Release the Right Lots

Once released, work must flow through verified steps with identity controls. Enforce line clearance to prevent wrong-label bleed-through; guide operators with digital travelers (job traveler) tied to the active MMR/MBR; and capture contemporaneous evidence in the eBMR. Where weighing or fill operations set content claims, integrate gravimetric weighing with SPC control limits and dual verification so lots are right the first time. Post-production, QA must perform timely lot release; delays here erode OTIF even if the plant ran perfectly. The discipline is simple: make the right things, with the right labels, and release the right lots—on time.

7) Warehouse Enablement—Pick Perfectly or Don’t Pick

“In-Full” lives in the warehouse. Maintain inventory accuracy with daily cycle counts and robust bin/location management. Present materials to pickers through directed picking that enforces FIFO/FEFO and reserves lots for OTIF-critical orders. Validate identity at each scan using barcode validation to prevent the “right quantity, wrong lot” failure that customers treat as a miss. Reinforce with visual work control so exceptions—short bins, damaged cases—are escalated and corrected before loading. At pack, enforce label verification again to catch template/version drift that would trigger dock-door rejections. A disciplined WMS turns “in-full” from hope into habit.

8) Compliance & Evidence—When Service and Regulation Meet

In regulated sectors, a shipment is not OTIF if it violates documentation or identity rules—even if it arrives on the date and with the count. Maintain immutable audit trails, attributable actions per Part 11, and robust genealogy across all units shipped. When customers initiate complaints or returns, investigate through NCMR/NCR and escalate to MRB where disposition is required. Embed corrective actions with CAPA and lock them via MOC so the lessons harden into process changes, not temporary vows. The point is simple: perfect orders are also compliant orders, with evidence ready for audit or dispute resolution.

9) Measuring & Visualizing—Make Misses Uncomfortable

Expose OTIF daily at multiple levels: customer, product family, ship-from site, and root-cause reason codes. Complement the headline with supporting KPIs that actually drive it: order-to-ship lead time, pick accuracy, packs verified, labels reprinted at dock, QA release cycle, and inventory accuracy by A/B/C class. Trend misses over time and annotate when changes shipped through MOC go live so you can associate improvements to causes. Share externally where contractual: some retailers enforce chargebacks on missed OTIF; transparent data reduces disputes. The goal is a culture where a miss is visible immediately, not weeks later in a monthly report no one can reconstruct.

10) Common OTIF Failure Modes & How to Prevent Them

• Inventory says “available,” bin is empty. Fix: tighten dock-to-stock timing, enforce cycle counting, and block picks when counts are stale.
• Right count, wrong lot or label. Fix: mandatory scan validation and label verification at pick and pack.
• QA release delay on finished goods. Fix: prioritize testing tied to ship promises; add IPC to reduce final testing time; accelerate lot release handoffs.
• Production builds the wrong revision. Fix: enforce effective-dated MMR/MBR and line clearance.
• Carrier arrives, order not staged. Fix: synchronize MES dispatch with wave picking; avoid releasing more jobs than can be packed by cutoff.
• Artwork change hits mid-run. Fix: route through Change Control and labeling control with hard stops at print/verify.
• Supplier issue propagates to shortage. Fix: gate receipts with incoming inspection and reserve alternates in MRP; open NCR/NCMR promptly.
• Batch/lot genealogy incomplete. Fix: enforce scans at each handoff per EPCIS principles and capture in the eBMR.

11) Improving OTIF—Tighten Gates, Shorten Feedback Loops

Raise the signal-to-noise ratio by moving quality and identity checks earlier. Shift from end-of-line inspection to control at source using error-proofing, SPC alerts, and jidoka stops that prevent defective units from consuming scarce pack/ship capacity. Introduce kaizen routines with short PDCA cycles focused explicitly on misses: open a formal NCR for each systemic OTIF defect category, run a containment, and harden the countermeasure through MOC. If your mix is volatile, stabilize flow with heijunka and restrict job release until downstream buffers are ready. OTIF improves when every station refuses to pass a problem forward and every fix becomes the new standard.

12) Evidence at Shipment—Proving “On-Time” and “In-Full”

At the dock, stamp each carton/pallet with attributable scans that tie order, line, lot, and label version to a shipping timestamp. If you exchange data with customers or carriers, use EDI confirmations as the system of record for time. Where customers require specific identifiers (e.g., GS1 GTIN), validate at pack to prevent ASN rejections that retroactively convert “on-time” into “late due to relabel.” If a shipment is short by design (e.g., approved split), record the agreement in controlled documentation. All of this evidence must live alongside the genealogy and audit trail so customer conversations are about facts, not recollections.

13) People & Culture—Owning the Promise

OTIF aligns teams because it is everyone’s number. Sales owns promise integrity; planning owns feasible dates; production owns execution to standard; QA owns timely release; the warehouse owns pick accuracy and staging; and shipping owns carrier readiness. Leaders must make misses visible and routine to discuss, not career-limiting to admit. Use internal audits to test whether the documented process actually protects the promise. Celebrate “boring” shipments that meet the standard every time—those are your brand.

14) How This Fits with V5 by SG Systems Global

V5 Solution Overview. The V5 platform unifies planning signals, manufacturing execution, warehouse control, and quality governance so OTIF is designed into the process rather than inspected at the dock. Data flows from receipt to release under one evidence model: scans, signatures, labels, and lots align by design.

V5 MES. In the V5 MES, orders convert into controlled jobs with effective-dated instructions straight from the MMR/MBR. Job release throttles WIP, dispatch queues pace the line, IPC/SPC gates prevent defects from consuming downstream capacity, and the eBMR captures evidence for release and customer disputes.

V5 WMS. The V5 WMS enforces dock-to-stock speed, inventory accuracy, and directed picking with FIFO/FEFO. It validates lots and labels through barcode checks and label verification, reserves inventory for OTIF-critical orders, and records pack/ship events for truthful measurement.

V5 QMS. Within the V5 QMS, misses drive NCR/NCMR, escalate to MRB where needed, and close with CAPA. Changes harden via MOC, preventing recurrence. The system keeps your labeling and instructions under control so identity errors don’t sabotage otherwise perfect shipments.

Bottom line: With V5, OTIF becomes a governed outcome: correct products made to standard, released on time, picked accurately, labeled correctly, and shipped to promise—with forensic evidence when questions arise.

15) FAQ

Q1. Should we measure OTIF by orders or by lines?
Measure at the line for actionability and at the order for external reporting. A single short line should fail the order; line-level trends reveal where to fix.

Q2. Do approved substitutions count as “in-full”?
Yes, but only if agreed with the customer before the promise date and documented under Document Control. Unilateral swaps should fail.

Q3. Our product is regulated; do labeling errors count as OTIF misses?
They should. Wrong or unverifiable labels lead to rejections and hazards. Enforce label verification and treat failures through NCR/CAPA.

Q4. How do we avoid “gaming” the metric?
Fix rules under Document Control, audit them via Internal Audit, and pull truth data from controlled systems (WMS, MES, EDI). No manual overrides without traceable justification.

Q5. Where should we start if our OTIF is low?
Start where misses cluster: inventory accuracy, QA release cycle, label rejections, or capacity promise errors. Contain quickly, then lock fixes via MOC so improvements survive quarter-end pressure.

Related Reading
• Planning & Promise: MRP | Finite Capacity Scheduling | KPIs
• Execution & Identity: MES | MMR | MBR | eBMR | Line Clearance
• Warehouse & Labels: WMS | Directed Picking | Bin / Location Management | FIFO | FEFO | Label Verification & UDI | EDI
• Quality & Release: Lot Release | NCMR | NCR | MRB | CAPA | MOC | Lot Traceability | Audit Trail (GxP)