How do you calculate supplier on-time delivery?

Divide on-time deliveries by total deliveries and multiply by 100. With 188 on-time out of 200 total, OTD is 188 ÷ 200 × 100 = 94%.

What is a good supplier on-time delivery rate?

World-class procurement targets 98% or higher. 95% is generally acceptable for non-critical commodities, while below 90% usually triggers a corrective action plan. The 94% in our example sits 4 points short of a 98% target.

What counts as an on-time delivery?

It depends on your delivery window definition. Most shops count a delivery on time only if it arrives on or before the due date and not early beyond an agreed tolerance, since early delivery ties up cash and warehouse space.

What is the difference between OTD and OTIF?

OTD measures only timing. OTIF (on-time in-full) also requires the full ordered quantity to arrive. A shipment that is on time but short ships passes OTD but fails OTIF, so OTIF is the stricter metric.

How do I close the gap to my OTD target?

A 4-point gap usually comes from a handful of repeat offenders. Pareto the late lines by supplier and part, then attack lead-time variability, capacity constraints, or freight mode before penalizing the supplier across the board.

Should early deliveries hurt OTD?

Many lean operations say yes. Early receipts inflate inventory and obscure real demand signals, so they define a delivery window with both an early and late boundary and count anything outside it as a miss.

Supply Chain & Procurement calculator

Supplier On-Time Delivery Calculator

Supplier on-time delivery (OTD) is the percentage of a vendor's deliveries that arrive within the promised or contracted window over a given period. Buyers, supply chain managers, and supplier quality engineers use it as the headline metric on every supplier scorecard because late material starves production lines and triggers expediting costs. It is the single number procurement teams quote in quarterly business reviews to decide whether a supplier keeps its share of spend. Tracking OTD against a target also tells you how much corrective action a relationship needs before it threatens your own customer commitments.

What this calculator does

Calculate on-time delivery for Supply Chain & Procurement: on-time deliveries as a share of total deliveries.
Use it to track on-time delivery against target in Supply Chain & Procurement.
It computes the share of deliveries that arrived on time as a percentage and the point gap between that result and your target OTD.

Formula used

On-time delivery = on-time deliveries ÷ total deliveries × 100
Gap to target = target otd − on-time delivery

Inputs explained

On-time deliveries: On-time deliveries in the period — the numerator.
Total deliveries: Total deliveries in the same period — the denominator.
Target OTD: Your target, used to show the gap.

How to use the result

Use it monthly or quarterly when building supplier scorecards, preparing supplier business reviews, or qualifying a new vendor against your acceptance threshold.
It treats every delivery equally, so a single late drop of a critical line-down part counts the same as a late shipment of low-value consumables; weight by impact for sourcing decisions.

Current U.S. benchmarks

U.S. manufacturing runs at 75.6% of capacity (Federal Reserve, May 2026). New factory orders are up 2.3% year over year (Census).
Sourcing currencies as of 2026-07-02 (Federal Reserve H.10): 6.7886 CNY and 17.4524 MXN per USD. Landed-cost comparisons move with these daily rates.
U.S. iron and steel imports ran $2.1B in May 2026 (Census International Trade). The U.S. ran a trade deficit of $0.4B in the category that month. Import volumes are the pressure gauge behind tariff and reshoring decisions.

Common questions

How do you calculate supplier on-time delivery? Divide on-time deliveries by total deliveries and multiply by 100. With 188 on-time out of 200 total, OTD is 188 ÷ 200 × 100 = 94%.
What is a good supplier on-time delivery rate? World-class procurement targets 98% or higher. 95% is generally acceptable for non-critical commodities, while below 90% usually triggers a corrective action plan. The 94% in our example sits 4 points short of a 98% target.
What counts as an on-time delivery? It depends on your delivery window definition. Most shops count a delivery on time only if it arrives on or before the due date and not early beyond an agreed tolerance, since early delivery ties up cash and warehouse space.
What is the difference between OTD and OTIF? OTD measures only timing. OTIF (on-time in-full) also requires the full ordered quantity to arrive. A shipment that is on time but short ships passes OTD but fails OTIF, so OTIF is the stricter metric.
How do I close the gap to my OTD target? A 4-point gap usually comes from a handful of repeat offenders. Pareto the late lines by supplier and part, then attack lead-time variability, capacity constraints, or freight mode before penalizing the supplier across the board.

Last reviewed 2026-05-12.