What is On-Time Delivery?
On-Time Delivery
Percentage of orders shipped on the promised date.
What it means
Delivery compliance rate is the number of orders shipped on time divided by the total number of orders. It shows whether the customer can trust the factory.
If it's low, you may have trouble making it, or you may have promised a date you can't keep.
At the pen factory
Of the eight orders placed so far, seven have been delivered on time. It's 87.5%. One thing that was late was an order on the 7th day that I promised without looking at the schedule.
Why it matters
No matter how well you make it, if it's late, it's a promise you can't keep to your customers.