Measures the percentage of orders delivered by suppliers on or before the agreed delivery date.

What it Measures ?

Tracks how often suppliers deliver on time.

Relevant StakeHolders 

Vendor Managers, Operations

In-depth Use Case / Real-world Example

A company manufacturing industrial pumps calculates Supplier On-Time Delivery Rate by comparing the actual delivery dates of ordered components with the promised delivery dates. If a supplier promised delivery within 10 days, but delivered on time 95% of the time, the Supplier On-Time Delivery Rate is 95%. High on-time delivery rates are essential for maintaining production schedules and minimizing disruptions.