On-time, in-full delivery services have become a standard by which retailers grade a supplier's ability to make deliveries on time, at the indented location, and with a full as requested load. Keeping track of OTIF performance rates is a primary concern for shippers as successful on-time delivery significantly impacts industry reputation and customer perspective. Poor on-time delivery can be a devastating blow to a shipper’s reputation. The better the OTIF rate, the better a company's reputation is among brokers, shippers, and customers. Retailers are paying more attention to on-time, in-full services and rates to encourage reliable delivery and ensure that carriers and 3PLs hit requested delivery dates and promised benefits.



On-time delivery success rates are essential for all shippers, especially those dealing with produce, perishables, and other specialty cargo. According to a report from McKinsey & Co, The US food retail industry loses an estimated $15–20 billion in sales every year because items are out of stock, not delivered on time, lost or damaged, or otherwise unsaleable after delivery. That is a lot of lost revenue, which comes down to poor OTIF performance and delivery tracking logistics. Shippers across all industries, particularly those dealing with sensitive, hazardous, and delicate cargo, must be able to promise reliable delivery performance and OTIF delivery for all loads.

The Importance of OTIF Delivery

On-time delivery helps to ship management and team members measure supply chain efficiency in real-time in industry-specific settings. This KPI allows companies to see at a glance how closely they are coming to meeting their goals regarding promised delivery times and conditions. Slight misses are expected, but customers expect reliable and safe delivery of their orders. Understanding OTIF and why it matters is critical to improving shipping services across the supply chain.

A July 2022 article by SupplyChainBrain reinforced this trend, noting "The number of shoppers expecting same-day delivery nearly tripled in a year. While only 24% of shoppers placed same-day delivery orders in 2020, 68% say fast shipping was a deciding factor in their 2021 orders. To put this in perspective, in 2019, same-day delivery amounted to a $5.87 billion market in the US; by 2024, the market is estimated to be worth $15.6 billion." Tracking, monitoring, and updating are the norm, not the exception. Despite market uncertainty and instability, OTIF services and reliable delivery performances are critical for continued recovery and growth.

How to Improve OTIF Delivery Services Performance

On-time, in-full services remain a critical focal point for many industries, but the consumer tech and grocery markets continue to top the list of those most concerned about the supply chain in 2022. That is according to a report highlighted by Logistics Management, where “more than 30,000 company earnings calls across 12 industries from early 2018 to April of this year. In fact, the supply chain was mentioned as a concern in 22% of grocery earnings calls in 2018, 90% in 2020 and 100% in 2022.” Knowing how to improve on-time delivery services and keep OTIF rates high can be challenging for shippers and transportation service providers.

The following tips can make the process of monitoring, maintaining, and perfecting OTIF delivery best practices easier from start to finish:

Know Retail Customer’s Delivery Requirements

One of the biggest obstacles to on-time delivery fulfillment is a simple lack of customized planning and preparation. Every delivery is different, as is every customer and drop-off. Providing reliable delivery performance depends on shippers knowing the unique factors impacting deliveries and their ability to meet the nuanced requirements of individual retail customers.

Improve Scheduling for Pickup and Drop-off

On-time delivery is different for various customers and industries, but it all comes down to proper planning and scheduling of pickups and drop-offs. Shippers who use real-time scheduling services and keep in touch with carriers and customers can offer the best on-time, in-full services. They can keep customers satisfied with personalized delivery specifications.

Improve Communications With Warehouse and Suppliers

Prioritizing delivery services and keeping OTIF performance rates as high as possible helps shippers maintain relationships with suppliers, warehouse personnel, and other team members. Quality communications and reliable contact points are essential to ensuring on-time delivery is the norm rather than the exception for regular loads and oversized and overweight freight.

Optimize Network Configuration and Chain of Command

Shipping service providers looking for ways to quickly and easily boost on-time in-full services should look at their current network setup. Optimizing the current tools and systems and improving existing chains of command can improve front and back office processes. This, in turn, allows more focus to go to quality services that enable reliable, on-time delivery.

Restructure Order and Shipping Volumes and Schedules

On-time delivery remains in high demand, thanks partly to the growing interest in e-commerce sales and shipping. Shippers who struggle to maintain OTIF performance regularly might need to consider restructuring some aspects of their network. Doing so can go a long way toward improving access to drop and hook, LTL, zone skipping, and other services.

Do Not Forget Lead Time Considerations for Shipping

One aspect of on-time delivery many shippers fail to consider when starting is the need for wiggle room with shipping schedules. Including enough lead time can help remove stress around rush orders and short turnaround. Building in a day or two of lead time reduces stress and makes it easier to provide reliable delivery performance.

Work With Preferred Carriers and Service Providers

Choosing the most suitable carrier and driver partners is critical to maintaining the highest level of quality and service for on-time delivery needs. Working with industry leaders and finding the right service provider for each load can affect every shipment. It can mean providing the best on-time, in-full services or missing specialty, hazardous, or chilled/cold delivery expectations.

Ensure the Supply Chain Can Support Shipment Loads

Sometimes the issues impacting a company's ability to provide on-time delivery are not with the company itself. Sometimes the market is too saturated or disruption too severe for any company to compensate. Keeping an eye on the entire supply chain network and current market trends makes monitoring OTIF performance averages easier for shippers and freight brokers.

Consider Consolidation Opportunities for LTL and TL

At times what worked for one load or customer might not be best for another. Some tweaks and adjustments might be necessary, such as consolidating shipments, diversifying LTL and TL load options, and improving on-time, in-full services. Perfecting on-time delivery is all about adjusting and responding to current trends and conditions when necessary.

Maintain Focus on Visibility and Real-Time Insights

Reliable delivery performance is the ultimate goal of all shipping service providers and has short and long-term impacts on companies of all sizes. Keeping up with retail trends and delivery demands with real-time insights and visibility improves shipping performance from start to finish. On-time delivery rates increase the more insight shippers have into the network.

Implement Automated and Tech-Back Solutions

The final thing express shipping providers can do to quickly and easily improve their success rates for on-time delivery is to embrace modern supply chain technology. Machine learning, automation, and advanced tools and software can drastically improve end-to-end performance within the supply chain. These steps also dramatically improve OTIF performance and keep deliveries on track.

Regardless of the trends seen and what current freight and trucking market demands are like, the need for fast, reliable, and timely delivery is here to stay. If anything, the demand will likely keep growing for the foreseeable future. Between 2020 and 2021, same-day delivery demand increased significantly in the United States. This was more often the case for orders shipped by web-only merchants and less frequent for store-based retailers. According to surveys compiled by Statista, “24 percent of US online shoppers opted for same-day delivery for purchases from pure online merchants in 2020. As of February 2021, the percentage increased to 36 percent." For this reason, if nothing else, shippers must prepare and be ready to focus on OTIF performance now and for the years to come.

Secure On-Time In-Full Services With Insights From Industry Leaders

Close and careful monitoring of OTIF performance rates remains a dominating concern for shippers as the successfulness of on-time delivery significantly impacts every aspect of growth and success. The better the OTIF rate, the greater the odds are that a shipping company can make good on promised delivery services and deadlines. Retailers are paying more attention to on-time, in-full services and rates to maintain a competitive advantage and to keep customer satisfaction levels as high as possible. Contact Entourage Freight Solutions today to learn more and to secure the OTIF rating you need with reliable delivery performance monitoring.