transportation
On-Time Delivery
The share of shipments delivered within the agreed delivery window.
Definition
The share of shipments delivered within the agreed delivery window.
Why it matters
Delivery reliability drives customer satisfaction and is the transport half of OTIF.
Formula
OTD = Shipments Delivered On Time / Total Shipments x 100
Example
4,750 of 5,000 shipments on time = 95%.
How to interpret it
Define on time by the customer requested date, not the date you rescheduled to. Both are useful, but only one reflects customer experience.
How to improve it
Manage carrier performance with data, build realistic transit expectations, and fix the upstream dock and paperwork delays.
Common mistakes
Measuring against internally revised promise dates, which can show 99% while customers experience failures.
Related KPIs
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