Draft reference — content review pending

On-Time Delivery Rate

The percentage of deliveries completed by the promised or agreed delivery time.

Plan my KPIs

Business question

What share of deliveries reached completion by the promised time?

Formula

On-time delivery rate = (deliveries completed by the promised time ÷ deliveries due in the reporting period) × 100.

(On-time deliveries / Deliveries due) × 100

Calculation notes

Define the promised or agreed delivery timestamp, grace period if any, and which deliveries are due in the period.

Edge-case guidance

If no deliveries are due, report the measure as not available. Keep customer-requested changes and business-caused delays distinguishable.

Required data

InputTypeStatusAvailable source hints
On-time deliveriesDeliveries completed by the agreed promised time.NumberRequiredProject management system · Ecommerce platform · Excel · Manual records
Deliveries dueDeliveries due in the reporting period under the same scope.NumberRequiredProject management system · Ecommerce platform · Excel · Manual records

Interpretation

Use the measure to monitor delivery reliability and investigate demand, capacity, scheduling, supplier, and handoff constraints.

Caution

An on-time result can look strong if promised dates are extended or if completed deliveries are counted without the full due population.

Implementation recommendation

Capture the promised timestamp at commitment and record delay reasons so improvement work addresses the actual constraint.

Target guidance

Set the first target from a comparable historical baseline for on-time delivery rate, then adjust it for strategy, capacity, seasonality, data quality, and relevant market or regulatory context. Review the direction with the accountable business owner rather than treating any external benchmark as universal.

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