On-Time Delivery Rate
Percentage of orders delivered by the promised date.
Formula
Variables
Example
470 of 500 on time: OTD = 94%
How it works
The on-time delivery rate tells you what share of all deliveries arrived on or before the promised date. It works by taking the number of deliveries that met the deadline, dividing by the total number of deliveries, and converting that fraction into a percentage so it is easy to compare over time or against a target. Because it is a proportion, the result is always between 0% and 100%.
When to use it
Use this formula in logistics, retail, ecommerce, and warehousing to track service reliability and customer performance. It is especially useful when comparing carriers, warehouse teams, shipping lanes, or monthly delivery performance against a service-level target.
Worked example, step by step
A warehouse ships 260 orders in a week. 245 of those orders arrive by the promised date. Use the formula: OTD = (n_on time / n_total) × 100 Substitute the values: OTD = (245 / 260) × 100 Calculate the fraction: 245 ÷ 260 = 0.9423 Convert to a percentage: 0.9423 × 100 = 94.23% Final answer: OTD = 94.23% (about 94.2%)
Common mistakes to avoid
- Counting late orders as on time because they were only one day late
- Using shipped orders instead of delivered orders in the total
- Forgetting to multiply by 100 when converting the fraction to a percentage
Did You Know?
On-time delivery is the single most watched KPI in retail supply agreements.
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