If, for example, an item is due june 1, it would be considered on time if it arrives on any day between may 27 and june 1. Implementing transport kpis or objectives for the transport team, driver, and manager drives the requirement to guarantee consistency over time.
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It is important that packages arrive on time, as late deliveries negatively affect customer loyalty and.
On time delivery metrics. You as the supplier are almost always responsible for the goods you deliver up to product acceptance by the customer. To calculate otd rate, you divide the total number of orders delivered by the number of deliveries that arrived after the promised delivery date. Whichever metrics you choose, it is managing to metrics that is critical in the.
Despite the importance of otd measurements, many manufacturers can still have trouble figuring it out. Here is a look at the definition of otd and how to properly measure it. On time delivery, or otd, is one of those metrics that electronics manufacturers must frequently measure.
For others, it refers to providing products to end customers. On time delivery is measured by your customers when it is availalbe on their stockroom shelves. This concept of an otd window is embedded in almost all modern erp/mrp systems.
Often, the otd metric isn’t as understood as it should be. Our top five overall delivery health metrics include:
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