On-Time Delivery (OTD / OTIF) Calculator
On-time delivery is the number customers feel first and finance trusts least, because everyone measures it differently. This calculator turns shipped lines, on-time lines and in-full lines into OTD, OTIF and the gap to your target.
Your numbers
Count lines, not orders, unless your KPI definition says otherwise.
Shipped on or before the promise date, inside your agreed window.
Only if your definition treats early outside the window as a miss. Enter 0 otherwise.
On time and complete quantity. Must not exceed on-time lines.
Your results
Definitions differ. Agree with your customers whether the clock is request date, promise date or original commit date, and whether a window is allowed.
OTD and OTIF as on-time lines change
Sweeps Lines shipped on time from 800 to 1240, holding your other inputs fixed.
OTD by customer from your ERP
Optional: we can show how to compute OTD and OTIF directly from shipment and order line data.
Optional. The tool and every export work without this. No spam.
How to use the calculator
Take a shipment line report for the period from your ERP. Count total lines shipped, lines shipped on or before the date you measure against, and lines that were both on time and complete. If early shipments count as misses under your customer agreement, enter them too. Set the target and read the number of extra on-time lines needed. This is useful when you explain a miss to a customer or size an improvement project.
Formulas
OTD equals on-time lines divided by lines shipped, times 100. OTIF requires both on time and in full, so it is always equal to or lower than OTD. Late rate is the remainder. Measuring at line level is more demanding than order level, because one late line makes an order late under the strict method. State the level in the definition, and keep the same one over time so the trend means something.
- OTD = on-time lines / lines shipped x 100
- OTIF = lines on time and in full / lines shipped x 100
- Late rate = late lines / lines shipped x 100
Reading the result
In the default example, 1,118 of 1,240 lines shipped on time, less 22 early, gives about 88.4 percent OTD, and OTIF is lower at around 85.9 percent. To reach 95 percent the plant needed roughly 83 more on-time lines in the month. The chart shows how sensitive the percentage is to each batch of recovered lines. Break late lines down by root cause next: material shortage, capacity, quality hold or order entry change.
Common mistakes
Measuring against the ship date you set internally rather than the customer date, counting partial shipments as on time, and dropping lines that were cancelled or rescheduled by the customer without a rule. Another trap is that rescheduling the promise date after the fact flatters OTD. Track the original commit date next to the current promise date so changes are visible.
Frequently Asked Questions
What is the difference between OTD and OTIF?
OTD counts lines delivered by the agreed date. OTIF also requires the full quantity to be delivered. OTIF is stricter and always equal to or below OTD, and many retailers and OEMs fine suppliers on it.
Should I measure by line or by order?
Line level is more precise and more demanding. Order level hides partial failures. Pick one, write it in the KPI definition, and use it consistently. Customers often dictate the method in their supplier manual.
Which date should on-time be measured against?
Use the date agreed with the customer, usually the promise or commit date. Measuring against an internal planning date will look better but will not match what the customer experiences.
What is a good OTD target?
Many industrial customers ask for 95 percent or higher, and some programs require close to 100 percent. Set it to match contract terms and your capacity, and tighten only after root causes are fixed.
If you want OTD and OTIF by customer, part family and root cause straight from your ERP shipment data, Netray can help build that read-only.
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