On-Time Delivery Rate Calculator Formula
Understand the math behind the on-time delivery rate calculator. Each variable explained with a worked example.
Formulas Used
On-Time Delivery Rate
otd_rate = total_deliveries > 0 ? (on_time_deliveries / total_deliveries) * 100 : 0Late Deliveries
late_deliveries = total_deliveries - on_time_deliveriesLate Delivery Rate
late_pct = total_deliveries > 0 ? ((total_deliveries - on_time_deliveries) / total_deliveries) * 100 : 0Variables
| Variable | Description | Default |
|---|---|---|
on_time_deliveries | On-Time Deliveries | 470 |
total_deliveries | Total Deliveries | 500 |
How It Works
How to Calculate On-Time Delivery Rate
Formula
On-Time Delivery Rate = (On-Time Deliveries / Total Deliveries) x 100
On-time delivery (OTD) rate is a core supply chain performance indicator. It measures how reliably you meet delivery commitments to customers. Late deliveries erode trust, trigger penalties in many B2B contracts, and drive customers to competitors. Tracking OTD by carrier, product line, and region pinpoints where delivery processes break down.
Worked Example
A company made 500 deliveries this month and 470 arrived on or before the promised date.
- 01OTD Rate = (470 / 500) x 100 = 94%
- 02Late Deliveries = 500 - 470 = 30
- 03Late Rate = (30 / 500) x 100 = 6%
Frequently Asked Questions
What is a good on-time delivery rate?
Best-in-class companies target 95-99%. The industry average is around 90%. Below 90% typically causes significant customer dissatisfaction. Track the trend: consistent improvement matters more than a single reading.
How do I improve OTD?
Improve demand forecasting, build safety stock for fast-moving items, optimize warehouse picking and packing, choose reliable carriers, set realistic delivery promises, and monitor supplier lead times proactively.
Ready to run the numbers?
Open On-Time Delivery Rate Calculator