Supplier On-Time Delivery (OTD)
Category: Operational
Measures the percentage of orders from suppliers that are delivered on time.
What it Measures ?
% of supplier orders delivered on time.
Relevant StakeHolders
Procurement, Supplier Manager
Why it Matters ?
Improves supplier delivery performance.
In-depth Use Case / Real-world Example
A company manufacturing packaging materials tracks Supplier On-Time Delivery (OTD) by monitoring how often suppliers meet delivery deadlines. For example, if a supplier delivers 900 orders on time out of 1000, the OTD rate is 90%. A high OTD rate helps avoid delays in production schedules and ensures timely fulfillment of customer orders.
Sample Formula
(Orders Delivered On-Time / Total Supplier Orders) * 100