Logistics & Supply Chain

Basic

On-Time Delivery Rate

Percentage of orders delivered by the promised date.

Formula

OTD = \frac{n_{on\ time}}{n_{total}} \times 100

Variables

OTDOn-time delivery (%)

n_{on time}On-time deliveries

n_{total}Total deliveries

Example

470 of 500 on time: OTD = 94%

Did You Know?

On-time delivery is the single most watched KPI in retail supply agreements.

logistics otd kpi

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More in Logistics & Supply Chain

Economic Order Quantity

Order size that minimises the combined cost of ordering and holding stock.

Reorder Point

Stock level that triggers a new order, covering demand during the lead time.

Safety Stock

Buffer inventory that absorbs demand variability during lead time.

Inventory Turnover

How many times inventory is sold and replaced in a period.

Days Inventory Outstanding

Average number of days stock sits before being sold.

Little's Law

Average items in a system equals arrival rate times average time in the system.