On-Time-Delivery
What is On-Time Delivery?
On-Time Delivery measures the proportion of orders that arrive at the customer at the promised time.
How is On-Time Delivery measured?
Formula:
(On-time deliveries ÷ total deliveries) × 100
Example:
1,000 deliveries, of which 970 are on time
→ On-Time Delivery = 97%
Benchmarks
- > 98% → excellent
- 95–98% → good
- < 95% → critical
Significance
This KPI is crucial for:
- customer satisfaction
- competitiveness
- service quality
Typical Causes of poor Performance
- delays in the warehouse
- inefficient picking
- transport issues
- poor planning
Optimization Opportunities
1. Real-time tracking
Transparency across the entire process.
2. Process optimization in the warehouse
Reduction of delays.
3. Better shipping planning
Alignment with logistics service providers.
Typical Mistakes
👉 On-Time Delivery is often viewed in isolation.
However, the following also play a key role:
as key influencing factors.
Relation to other KPIs
- throughput time
- perfect order rate
- inventory availability
Practical Example
Process optimization:
- before: 93%
- after optimization: 98.5%
→ significant increase in customer satisfaction
❓ FAQ
What counts as „on-time“?
Delivery must take place within the agreed time frame.
How often should I measure?
Daily or in real-time.
Conclusion
On-Time Delivery is one of the most important service KPIs and a key competitive advantage.