On time delivery is a measure of process, production, supply chain and fulfillment which measures the amount of finished goods or services delivered to customers on time and in full quantity.
Why track it? The on time delivery metric helps you understand and determine how efficently you are meeting your agreed upon demand deadlines with your customer's.
How to calculate? On time delivery is one of the easiest metrics to track and yet it is often overlooked. The metric is calculated by dividing the number of units/shipments delivered on time in full quantity to the right location by the total orders shipped.
delivered on time/ total orders shipped.
Question: Jim works in shipping and receiving. Last month he confirmed that 562 orders were delivered to the customer. Of those 562 orders 533 were on time and 514 were the full order. What was Jim's on time delivery rate?