On-Time Delivery (OTD)
Quick answer
The share of deliveries arriving within the promised window: on-time deliveries / total deliveries × 100.
Key takeaways
- Define the delivery window clearly (date, time slot)
- Count a delivery as 'on time' only if it meets the window
- Split the causes: stock, transport, processing, documentation
What OTD is
On-Time Delivery (OTD) measures delivery punctuality: how many arrived within the promised window, out of the total. It is the 'on-time' component of the fuller OTIF (On-Time In-Full) metric, which also requires complete delivery.
Why it matters to the board
OTD is the most visible reliability signal to customers and retailers. Low OTD triggers penalties, costly rush orders and lost listings. Large retailers often require OTD above 98%.
How to measure it correctly
- Define the delivery window clearly (date, time slot)
- Count a delivery as 'on time' only if it meets the window
- Split the causes: stock, transport, processing, documentation
How CRMconnect helps
CRMconnect tracks every order against its promised date, flags delay risk early and orchestrates allocation and dispatch to protect OTD - including routing to the location with available stock.
Real-world example
An FMCG supplier had 91% OTD and paid monthly chargebacks. With early alerting and available-stock routing, OTD climbed to 98.5% and penalties nearly vanished.
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Frequently asked
OTD vs OTIF?+
OTD measures punctuality only; OTIF (On-Time In-Full) requires delivery to be both on time and complete. OTIF is stricter.
What OTD do large retailers require?+
Frequently above 98%, with escalating penalties below the threshold. It depends on the contract and retailer.
Where CRMconnect fits
Related terms
OTIF (On-Time In-Full)
Share of orders delivered on time AND complete. Critical KPI for modern retailer relationships.
LogisticsDIFOT (Delivered In Full, On Time)
The metric measuring the percentage of orders delivered in full and on the promised date.
TechnologySLA (Service Level Agreement)
Contractual guarantee of availability, support response time and technical performance.
OperationsPerfect order rate
The percentage of orders delivered with no errors - on time, in full, undamaged and with correct documentation.