Deduction Library / OTIF
OTIF
OTIF — on time, in full — is a performance deduction. The retailer measures whether the order arrived in the required window with the required quantity. A miss generates a penalty, usually a percentage of the PO or a flat fee, separate from paying for the goods themselves.
Why Retailers Assess It
Retailers staff DCs and stores to a plan. Late or short inbound product creates out-of-stocks, overtime, and extra handling. OTIF programs exist to make suppliers carry that cost. The deduction is the fee. It is not a statement that the product was unpaid — it is a statement that the performance target was missed.
How to Validate
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Confirm the freight terms on the PO: prepaid, collect, or a third-party account.
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Compare the actual carrier and mode to the routing guide in force on the ship date.
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Match appointment, SCAC, PRO, and trailer numbers to the claim.
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Separate a true routing miss from a receiving delay recorded as a supplier freight claim.
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Check whether the same charge was taken as OTIF, compliance, and freight on one shipment.
Documents You Typically Need
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Purchase order with freight terms
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Routing guide effective on the ship date
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Bill of lading and carrier invoice or PRO
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Appointment confirmation
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Proof of delivery
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Accessorial or detention backup if those fees are claimed
* Additional documents may be needed depending on the retailer and claim type.
Common Causes
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Wrong carrier, mode, or ship-from versus the routing guide
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Collect freight billed to the supplier — or prepaid freight the retailer also deducted
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Missed appointments and detention
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Unauthorized accessorials
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Duplicate billing between the carrier invoice and a retailer debit
Recovery Notes
Freight claims are won with the routing guide and the BOL, not with a general protest. If the supplier chose the carrier, own that. If the retailer changed the appointment or refused the load, document it. Do not let freight, OTIF, and compliance stack on the same event without checking that the dollars are distinct.
Related types: MABD, Retail Compliance.
Related service: Retail Deduction Recovery.