Draft reference — content review pending
Supplier On-Time Delivery Rate
The percentage of eligible supplier deliveries received by the agreed date or approved delivery window.
Business question
How reliably do suppliers deliver eligible shipments within their agreed windows?
Formula
Supplier on-time delivery rate = eligible supplier deliveries received by the agreed date or approved window ÷ eligible supplier deliveries received × 100.
Calculation notes
Use the committed date or documented delivery window from the purchase order or supplier agreement. Define receipt timestamp, partial deliveries, early deliveries, carrier delays, approved changes, and whether the denominator is shipments or purchase-order lines.
Edge-case guidance
Do not silently treat an early delivery as on time; apply the documented early-delivery policy. Separate supplier-caused delay from buyer-caused or carrier-caused delay, and do not count pending or cancelled deliveries as received.
Required data
| Input | Type | Status | Available source hints |
|---|---|---|---|
| Supplier deliveries within agreed windowReceived eligible deliveries meeting the documented date or approved window rule. | Number | Required | Accounting software · Excel · Google Sheets · Manual records |
| Eligible supplier deliveries receivedReceived eligible deliveries in the selected cohort, excluding cancelled and still-pending deliveries. | Number | Required | Accounting software · Excel · Google Sheets · Manual records |
Interpretation
Use this measure to understand inbound reliability. Read it with quantity completeness, quality acceptance, lead time, purchase-order changes, and the agreed early-delivery policy.
Caution
A high rate may reflect loose promised windows or selective suppliers. It does not show quantity completeness, price, quality, or total lead time by itself.
Implementation recommendation
Capture the original committed date, approved window changes, receipt event, and delay responsibility before comparing suppliers or periods.
Target guidance
Set the first target for supplier on-time delivery rate from comparable internal history, then adjust it for assortment, service commitments, seasonality, capacity, and data quality. Review the direction with the accountable owner and consider this trade-off: tightening windows without supplier capacity evidence can create unstable purchasing and false performance pressure.