On-Time Delivery Rate

A core customer-service logistics KPI. Define “on time” as arrival by appointment, by requested date, or by carrier SLA—and keep that rule stable.

OTD % = on-time deliveries ÷ total deliveries × 100.

Tip: Keep “On-Time Shipments” and “Total Shipments” on the same basis (period, units, and population) before calculating On-Time Delivery Rate.

Cluster: Logistics hub · Business hub · Professional KPIs · Percentage guide

On-time delivery (OTD) measures the share of shipments that arrive by the promised delivery window.

Enter on-time shipments and total shipments for the same period.

Shipments delivered on time
All shipments in the period

On-Time Delivery Rate

Understanding On-Time Delivery Rate

How we calculate. OTD % = on-time deliveries ÷ total deliveries × 100. The form uses the same arithmetic as the worked examples on this page. See our methodology and accuracy policy.

Real-world scenario: A typical On-Time Delivery Rate case uses on-time shipments 920 and total shipments 1000. Enter the same figures below to reproduce the worked path.

What is On-Time Delivery Rate?

A core customer-service logistics KPI. Define “on time” as arrival by appointment, by requested date, or by carrier SLA—and keep that rule stable.

  • Same shipment set in numerator and denominator
  • Define the delivery window clearly
  • Segment by lane or mode for diagnosis

The Formula

On-Time Delivery Rate
OTD % = (On-time shipments ÷ Total shipments) × 100

Worked Example

Scenario: 920 on-time shipments out of 1,000 total.
Step 1: 920 ÷ 1000 = 0.92
Step 2: × 100 = 92%
Answer: On-time delivery rate is 92%.

Common Use Cases

  • Carrier scorecards: OTD by partner
  • Customer SLAs: promised vs actual
  • Network reviews: lane reliability

Pro Tips

  • Exclude cancelled orders if policy says so
  • Separate early vs late when analyzing root cause
  • Pair with OTIF for completeness

Limitations: On-Time Delivery Rate results are educational logistics and supply-chain planning aids—not SLAs, carrier contracts, or inventory valuation advice. Confirm definitions with your WMS/TMS and finance policies.

FAQ

Is early delivery counted as on time?

Only if your policy says so. Some customers treat early arrivals as failures—document the rule.

What if total shipments is 0?

OTD is undefined—enter a positive shipment count.

Authoritative References

For logistics and supply-chain KPI definitions, consult:

  • CSCMP — supply chain management resources
  • ASCM / APICS — operations and inventory body of knowledge
  • ISO 28000 — security management for the supply chain (context)