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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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