KPISales

On-Time Delivery (OTD) Rate

Percentage of customer orders delivered on or before the agreed delivery date

What is On-Time Delivery (OTD) Rate?

On-time delivery rate is the percentage of orders delivered by the promised date. It shows how reliably a business keeps its delivery promises.

Late deliveries damage customer trust and repeat business, so this is a central service measure.

How this KPI is measured

Function
Sales
Sub-function
Order Fulfilment
Industry
All Industries
Type
Lagging
Impact
Operational
Unit
%
Measurement frequency
Weekly / Monthly
Formula
(Orders delivered on time / Total orders delivered) × 100

How to calculate it

Divide orders delivered on time by total orders delivered, and multiply by 100.

For example, if 950 of 1,000 orders arrived by the promised date, the rate is 95%.

Agree what on time means, such as delivered by the date first promised, and use the same standard each time.

Where it is used

  • Managing service quality

    Track promises kept.

  • Finding causes of delay

    See where lateness arises.

  • Setting customer expectations

    Promise dates you can keep.

How to improve it

Tips and common mistakes

  • Measure against the original promise, not a revised date.
  • Include partial deliveries by a clear rule.
  • Track by customer and product.

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