What (If any) tolerance levels does your organization use for Measuring On-Time Delivery?

888 views2 Upvotes4 Comments

Sr. Director of Supply Chain in Healthcare and Biotech, 10,001+ employees
This depends on what you want as an organization to drive and how you want to hold your supply partners accountable.  Typically, tolerances can vary as x days early and y days late calendar days (Ex. -5 days before and two days late). 
Founder & Supply Chain Expert, Oakmont Supply Solutions in Consumer Goods, 2 - 10 employees
If we're talking about On-Time Delivery to customers, I would say this varies significantly by business based on customer requirements and is usually determined by their compliance fine structure.  For example, if you are selling into big box retail, a common expectation is a 98% OTIF.  Wholesale distribution might have a slightly lower target (often in my experience between 90-95%).

If we're talking about On-Time Delivery from vendors, I agree with .
3 2 Replies
Sr. Director of Supply Chain in Healthcare and Biotech, 10,001+ employees

I fully agree, Lindsey Walker; the OTD/OTIF customer viewpoint differs slightly. We want to be above 95%, ideally.  

Those new to this KPI start with your baseline, then measure from there, making it a step-up function over time. Continually improve with Pareto's and the root cause, and corrective action on addressing the miss. The logic can be applied to both supplier-driven and fulfilling orders.

Director of Information Security, Self-employed

Assuming we are talking about On-Time delivery to customers. We are a chemical manufacturer serving a wide variety of markets (B2B customers) with different mode of transports (Road, Rail, Sea & Air) we would like to ensure that our OTD/OTIF is representative

Example of our suggested On-time tolerances by mode: 
Road: -+1 day 
Air ≤ + 1 day 
Rail -+3 days 
Ocean -7/+3 days

Does this look representative and could be benchmarked?


Content you might like

CTO in Software, 201 - 500 employees
Without a doubt - Technical Debt! It's a ball and chain that creates an ever increasing drag on any organization, stifles innovation, and prevents transformation.
Read More Comments
41.7k views131 Upvotes319 Comments

Company financial stability52%

Industry trends43%

Length of time in business47%

Recent layoffs or restructuring50%

Employee turnover rate41%



Blindly following Review sites (eg. GlassDoor)5%



4.6k views7 Upvotes3 Comments


76-90% complete0%

51-75% complete75%

26-50% complete0%

10-25% complete0%

Just getting started25%


273 views2 Upvotes