DP13
Orders On-time Ratio
Orders On-time Ratio measures the ability to deliver products and services on-time. On-time is measured by comparing the actual delivery date to the target date. OpenReference recognizes three target dates companies target depending on industry, supply chain configuration and maturity:
- Latest commit to the customer - Typically the target date is the Current Scheduled Delivery Date. This is typically the easiest target. It ignores what the customer requested and what was originally promised to the customer
- Original commit to the customer - Typically the target date is the Original Scheduled Delivery Date. This target date ignores what the customer requested (including unrealistic requests). It does measure a company's order promising accuracy.
- Requested by the customer - Typically the target date is the Customer Requested Delivery Date. This target date ignores constraints of the supply chain, but provides insights in whether the supply chain network configuration is aligned with customer expectations.
An order is considered on-time if all items were delivered on or before the target date. The margins that define on-time (hours/days early and hours/days late) should be based on the customer's definition of on-time.
Calculation
| Orders On-time Ratio | ||||||||||
| = |
| |||||||||
where
- Delivered On-time = 1 (one) if all items delivered were on-time, 0 (zero) if one or more items were too early or too late
- n = Total number of orders or order lines delivered
Unit of measure: %
Importance
A higher percentage results in less corrective actions, such as returns, late delivery penalties, demurrage, detention
Notes
Measuring late deliveries is the most common application of this metric. The impact of too early delivery attempts should not be ignore in some industries. The specific interpretation of On-time should therefore also include the customer's definition of too early.
Community Importance Rating:
Hierarchy
| ID | Name | Level | x |
|---|---|---|---|
| DP1 | Perfect Order Ratio | 1 | DP1 |
| DP13 | Orders On-time Ratio | 2 | DP13 |
| DP131 | On-time to Customer Request Ratio | 3 | DP131 |
| DP132 | On-time to Original Commit Ratio | 3 | DP132 |
| DP133 | On-time to Current Schedule Ratio | 3 | DP133 |
Process(es)
| ID | Name | Level | x |
|---|---|---|---|
| P2 | Plan Source | 2 | P2 |
| P3 | Plan Make | 2 | P3 |
| P4 | Plan Deliver | 2 | P4 |
| P403 | Calculate Delivery Plan | 3 | P403 |
| S006 | Negotiate | 3 | S006 |
| S2 | Source-to-Order | 2 | S2 |
| S201 | Create Order | 3 | S201 |
| M202 | Schedule Make Orders | 3 | M202 |
| M206 | Package | 3 | M206 |
| M303 | Schedule Resources | 3 | M303 |
| M307 | Package | 3 | M307 |
| M309 | Transfer | 3 | M309 |
| M401 | Create Work Order | 3 | M401 |
| D1 | Deliver-From-Stock | 2 | D1 |
| D103 | Reserve Inventory | 3 | D103 |
| D104 | Schedule Transportation | 3 | D104 |
| D107 | Pick | 3 | D107 |
| D108 | Pack | 3 | D108 |
| D109 | Load | 3 | D109 |
| D110 | Ship | 3 | D110 |
| D2 | Deliver-to-Order | 2 | D2 |
| D203 | Route & Schedule Order | 3 | D203 |
| D204 | Schedule Transportation | 3 | D204 |
| D206 | Receive & Stage | 3 | D206 |
| D207 | Pick | 3 | D207 |
| D208 | Pack | 3 | D208 |
| D209 | Load | 3 | D209 |
| D210 | Ship | 3 | D210 |
| D3 | Deliver-To-Engineering-Order | 2 | D3 |
| D309 | Pack | 3 | D309 |
Term(s)
| ID | Name | Clear | x |
|---|---|---|---|
| ATP | Available-To-Promise | ATP | |
| COTD | Complete & On-Time Delivery | COTD | |
| CSDD | Current Scheduled Delivery Date | CSDD | |
| CRDD | Customer Requested Delivery Date | CRDD | |
| D&D | Demurrage and Detention | D&D | |
| SOC | Order Confirmation | SOC | |
| OSDD | Original Scheduled Delivery Date | OSDD |