Measures the percentage of orders delivered by a supplier on time and in full, according to agreed-upon terms.
What it Measures ?
How often our suppliers deliver on time and correctly.
Relevant StakeHolders
Logistics Teams, Supplier Managers
Why it Matters ?
Enhances supplier reliability and delivery adherence.
In-depth Use Case / Real-world Example
For a company manufacturing automotive parts, supplier delivery reliability tracks how often suppliers meet their delivery deadlines. If a supplier delivers 95% of orders on time and without shortages, the supplier’s delivery reliability is 95%. This metric helps the company identify suppliers who are consistently reliable, ensuring smooth production schedules and reducing the risk of delays in the assembly line.
Sample Formula
Reliable Supplier Deliveries / Total Deliveries