On-Time Delivery Performance Metrics
On-Time Delivery (OTD) is one of the most critical Key
Performance Indicators (KPIs) in supply chain management. It measures a
supplier's ability to fulfill customer orders by the promised delivery date.
On-Time Delivery (OTD) is a critical supply chain metric
that measures the percentage of orders delivered to customers on or before the
promised delivery date. It serves as a direct indicator of supply chain
efficiency, customer satisfaction, and logistical reliability.
The Core Metric: OTD Formula
At its simplest, On-Time Delivery is calculated by
comparing the number of successful, on-time deliveries against the total number
of deliveries in a given period.
OTD (%) = (Number of Orders Delivered On Time / Total
Number of Orders Delivered) × 100
For example, if you deliver 950 orders on time out of
a total of 1,000 orders for the month, your OTD rate is 95%. While benchmarks
vary by industry, a standard "best-in-class" OTD rate is typically 95%
or higher.