Customers judge logistics by whether goods arrive when promised. On-time delivery is the percentage of shipments that reach the consignee within the agreed time window.
Definitions vary: some measure against the original promise date, others against a revised appointment. Carriers and shippers must agree on the measurement rule or debates replace improvement. Causes of lateness include congestion, documentation delays, equipment shortages, and upstream production slips.
High on-time performance builds trust and reduces expediting cost. Chronic underperformance triggers customer penalties and lost business. Tracking the metric by lane, carrier, and root cause turns a simple percentage into an actionable management tool.
- Share of shipments delivered within the promised window
- Requires agreed measurement definitions
- Affected by transport, documentation, and upstream factors
- Key service metric for customers and carriers
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