On-time delivery

Receipts on or before the promised date divided by receipts, per supplier, per month. With quality from rejections, the performance trend that warns before a supplier fails.

DefinitionReceipts on or before the promised date divided by receipts, per supplier, per month. With quality from rejections, the performance trend that warns before a supplier fails.

Needs a promised date

Receipts without one cannot be measured. Count them and get the date onto the purchase order.

Read as a trend

A supplier at 91 percent is fine; a supplier that was at 96 and is now at 91 is the finding, especially if it is the single source for fourteen parts.

How it is computed

Receipts or deliveries inside the agreed date window divided by those due, per supplier or customer, per month, with the window stated.

Example

Seven of ten lines arrived within one day of the requested date: 70 percent. Against the promised date, which had been moved twice, it was 100 percent.

Where it goes wrong

Measured against a promise that was changed after the order. Everything is on time to a date nobody wanted.

Articles that use this term

Board and management reporting · Supply chain

KPIs for supply chain teams: ten measures that matter, each with its formula and the export it comes from

The ten KPIs a supply chain function should run on, each with its formula, the export it comes from and what it tells you: supplier OTIF against each supplier's own baseline, lead time variability, customer OTIF under each customer's rule, forecast bias by SKU and site, inventory ageing, single-source exposure, days of cover against target, expedite cost, supplier deterioration watch, and cause of service misses. Also the three measures most teams miss, the figures to drop, the identities, and who owns what.

17 Sept 20264 min read Board and management reporting · Supply chain

OTIF vs fill rate vs on-time delivery: what is the difference, and which one the customer scores

OTIF, fill rate and on-time delivery are three delivery measures that are reported as if they were one. On-time delivery tests the date only. Fill rate tests the quantity only, and comes in line, case and order versions. OTIF requires both on the same order. This page sets out the definitions, computes all of them on the same ten order lines, shows why OTIF is always the lowest, and explains which one a retailer's scorecard and chargebacks are based on.

17 Sept 20264 min read How-to guides

The difference pages: twenty pairs of sales terms that get swapped, and the line between each

A hub for the comparison pages on this site: churn and dormancy, win rate and close rate, pipeline coverage and weighted pipeline, OTIF and fill rate, gross margin and contribution, KPI and metric, leading and lagging indicators, concentration ratio and Herfindahl index, share of wallet and market share, renewal and retention, and more. Each page gives both definitions, computes both on the same rows, and says which to use when. This page lists them with the one-line difference for each.

17 Sept 20264 min read