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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