Measures the percentage of products delivered to customers on or before the promised delivery date.

What it Measures ?

How many deliveries reach customers on time.

Relevant StakeHolders 

Logistics Manager, Distribution Head

Why it Matters ?

Measures on-time delivery performance.

In-depth Use Case / Real-world Example

On-Time Delivery Rate is a key metric that tracks how often products are delivered to customers within the agreed timeframe. For example, if a company delivers 95 out of 100 orders on time, the on-time delivery rate is 95%. This KPI is crucial for customer satisfaction and retention. Companies can improve on-time delivery by optimizing logistics, improving production scheduling, and addressing any delays in the supply chain.