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

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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 .

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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?

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