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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.

Esempio Risolto

A company made 500 deliveries this month and 470 arrived on or before the promised date.

  1. OTD Rate = (470 / 500) x 100 = 94%
  2. Late Deliveries = 500 - 470 = 30
  3. Late Rate = (30 / 500) x 100 = 6%