Measures the percentage of orders delivered on or before the promised delivery date.

What it Measures ?

How many orders are delivered on time.

Relevant StakeHolders 

Logistics, Order Fulfillment

In-depth Use Case / Real-world Example

On-Time Delivery Rate is a critical KPI for ensuring customer satisfaction. For example, if a manufacturer promises delivery within 10 business days and successfully delivers on time for 90 out of 100 orders, the on-time delivery rate is 90%. Timely deliveries not only improve customer satisfaction but also influence repeat sales and brand loyalty. In the manufacturing industry, on-time delivery is often tied to effective production planning, inventory management, and logistics. Tracking this KPI helps ensure operational efficiency and can highlight areas for improvement in supply chain and production processes.