What is On-Time Delivery Percentage?
The On-Time Delivery Percentage refers to the percentage where customer orders are delivered on the right expected time.
This is a KPI that really keeps customers happy but is also motivating to your production employees. Set the goal for 100% on-time weekly and consider rewarding your employees if they achieve it. Many of the other leading indicators mentioned help drive this one. What percentage of total products are delivered on time?
How Do You Calculate The On-Time Delivery Percentage?
OTD is simply measured as a ratio of the number of units on time divided by the number of total units shipped on a monthly basis. It is not clear how the number of units on time is calculated. Multiply the result by 100 to convert it to its percentage.
On-Time Delivery = (# of Units Delivered on Time / Total # of Units Sold in The Same Time Period) x 100