SupplyGrid · Glossary Definition

On Time Delivery

On-Time Delivery (OTD) is a supply chain and manufacturing KPI measuring the percentage of orders, shipments, or supplier deliveries that arrive by the agreed or required date, sometimes within an approved tolerance window. It is calculated as on-time deliveries divided by total deliveries, multiplied by 100, and may be quantity-weighted. In manufacturing, OTD tracks inbound material availability to prevent line stoppages.

In practice, OTD is pulled from ERP or procurement data using PO lines, requested dates, confirmed dates, receipt dates, quantities, item numbers, supplier IDs, and incoterms. On the shop floor, this metric verifies whether raw materials, components, and subassemblies arrive when scheduled, so production can start and continue without line starvation, expediting, or schedule resequencing. In receiving and warehousing, OTD acts as a gatekeeping signal: inbound material that misses the required window delays putaway, kitting, replenishment, and production issue transactions, even if the shipment is otherwise complete. Planners use required dates for internal supply continuity and confirmed dates for supplier commitment tracking. Quantity-weighted OTD is more informative when partial receipts of high-volume items matter, because order-count OTD can overstate performance on split POs. For SupplyGrid material tracking, OTD reflects the reliability of inbound supply commitments supporting inventory availability, dock scheduling, and shop-floor continuity.

Operational Failure Matrix
Risk LevelOperational Pitfall Description
⚠️ Warning 1Line stoppage from late material: A critical raw material misses its consumption point, forcing the line to idle or resequence. The quantity eventually arrives, but the OTD miss already disrupts the schedule, adding expediting and resequencing costs.
⚠️ Warning 2Receiving bottleneck at the dock: Inbound loads arrive outside the agreed dock window, overwhelming unloading capacity and delaying QA inspection and putaway. The next production order waits for material release, making the warehouse a hidden source of downtime.
⚠️ Warning 3False-green supplier score: Measuring OTD against a lenient promised date rather than the true need-by date makes a supplier appear on time while shortages still disrupt manufacturing. Weak definitions mask recurring failures and delay corrective action.
Technical FAQs
Is OTD the same as OTIF?

No. OTD measures timing only; OTIF adds completeness, so a delivery can be on time but still fail OTIF if it is short-shipped or partially received.

What date should a plant use for OTD?

Use the date that matches operational risk, often the need-by or dock-required date for internal supply continuity, and the promised date for supplier commitment tracking.

Should OTD be order-count or quantity-weighted?

Quantity-weighted OTD is more informative when partial receipts of high-volume items matter, because order-count OTD can overstate performance on split or mixed-line POs.

Software that works like your best tools.

This Glossary is maintained by Ryxen — focused software tools that solve specific operational friction points for Canadian small businesses. No ERP bloat, no per-user pricing, no demo calls.