On-time Delivery Rate

On-time Delivery Rate is a core performance indicator that measures a supplier's or exporter's ability to deliver goods according to the agreed schedule. It is usually expressed as a percentage and calculated as: number of on-time delivered orders ÷ total orders × 100%. In foreign trade, it is commonly used for supplier evaluation, contract performance assessment, and customer satisfaction analysis, directly affecting buyers' willingness to reorder and supplier ratings. When using this term, note that: the on-time standard must be clearly defined in the contract, such as 'no later than the agreed delivery date' or 'a grace period of ±3 days is allowed'; the starting time may be the order confirmation date, the letter of credit opening date, or the production completion date, and different definitions will lead to data discrepancies. Unlike 'order completion rate,' which only focuses on whether delivery occurred and does not consider the time dimension; and unlike 'delivery lead time,' which is a time-length indicator rather than a ratio. In addition, the on-time rate should distinguish between 'production on-time' and 'logistics on-time' to avoid confusion of responsibilities. It is recommended to specify the statistical scope, time range, and grace period rules in reports to ensure data comparability and fairness.