Actions

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
=
n
Σ  Delivered On-time
i=1
  × 100%
n

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:
5.00
(one vote)

Hierarchy

IDNameLevelx
DP1Perfect Order Ratio1DP1
DP13Orders On-time Ratio2DP13
DP131On-time to Customer Request Ratio3DP131
DP132On-time to Original Commit Ratio3DP132
DP133On-time to Current Schedule Ratio3DP133

Process(es)

IDNameLevelx
P2Plan Source2P2
P3Plan Make2P3
P4Plan Deliver2P4
P403Calculate Delivery Plan3P403
S2Source-to-Order2S2
S201Create Order3S201
M202Schedule Make Orders3M202
M206Package3M206
M303Schedule Resources3M303
M307Package3M307
M309Transfer3M309
M401Create Work Order3M401
D1Deliver-From-Stock2D1
D103Reserve Inventory3D103
D104Schedule Transportation3D104
D107Pick3D107
D108Pack3D108
D109Load3D109
D110Ship3D110
D2Deliver-to-Order2D2
D203Route & Schedule Order3D203
D204Schedule Transportation3D204
D206Receive & Stage3D206
D207Pick3D207
D208Pack3D208
D209Load3D209
D210Ship3D210
D3Deliver-To-Engineering-Order2D3
D309Pack3D309

Term(s)

IDNameClearx
ATPAvailable-To-PromiseATP
COTDComplete & On-Time DeliveryCOTD
CSDDCurrent Scheduled Delivery DateCSDD
CRDDCustomer Requested Delivery DateCRDD
D&DDemurrage and DetentionD&D
SOCOrder ConfirmationSOC
OSDDOriginal Scheduled Delivery DateOSDD
Orders On-time Ratio Perfect Order Ratio 11300 2 On-time, Ratio, OTIF, COTD, Customer Satisfaction, First commit, Predictability, Order Promising, Accuracy, Ratio, Dependability, Supply Chain [[Description::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: Latest commit, original or first commit, customer request]]

Complete & On-Time Delivery Demurrage And Detention t:OTIF