How do I calculate on-time delivery rate in logistics?
On-time delivery rate is the number of deliveries completed within the agreed delivery window divided by total deliveries in the period, multiplied by 100. Deliveries arriving early or late outside the window count as not on time, unless your agreement says otherwise.
It matters because it is the main promise a logistics customer experiences.
Commonly misread:
- Measuring against the planned time set by your own dispatchers rather than the customer's requested window.
- Using the time the vehicle arrived instead of the time the goods were handed over.
- Hiding customer-caused delays by excluding them without a clear rule. Record the reason and report both views.
- Using a single average across all customers when contracts differ.
Decide the clock-start, clock-stop and window rules in writing and apply them to every delivery.
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