On Time Delivery (OTD)

On time delivery heavily influences customer satisfaction and financial performance … so better constantly measure it !

Usual measurement is actual delivery date versus customer requested date … and usually also against the promised supply date.

Good on time delivery also means you managed to get your revenue in time. A typical way to bucket performance is by major performance …

Early … shipment was done too early. Can cause space or finance issues.

On Time … the ultimate customer satisfaction.

Late …causing severe customer production issues and / or claims.

What is typically being measured …

  • Actual delivery date compared to the customer requested delivery date.
  • Actual delivery data compared to the manufacturer confirmed delivery date.

What are the usual metrics …

Most used is measuring number of shipments or deliveries. Sometimes, measurement of number of products delivered is being used.

Measurement can also be value of the products delivered … a typical internally focussed measurement as it detects optimization of company finance.

Good delivery also means good cash flow !

Some examples of graphs …

A few excuses … to be used with care 🙂