On-time Supplier Delivery Rate
This PDF report includes benchmarking data (in a visual, chart-based format), an comprehensive KPI definition, characteristics of high performers and technical details on measuring On-time Supplier Delivery Rate. Purchase and download this easy-to-understand, presentation-ready report immediately to compare performance levels, set attainable performance targets, and push towards best-in-class performance for this KPI.
What is On-time Supplier Delivery Rate?
The number of orders received from suppliers on or before the committed delivery date divided by the total number of orders received from suppliers over the same period of time, as a percentage.
Why should On-time Supplier Delivery Rate be measured?
On-Time Supplier Delivery Rate measures the reliability of the company's suppliers with regards to delivering shipments on-time. A relatively low value for this KPI may indicate that the company practices poor delivery scheduling methods, the company is not adequately managing or communicating with its vendors, or that they are not providing enough incentive for the supplier to consistently deliver shipments on-time. If suppliers are consistently delivering shipments late, the company may need to spend time and money searching for new vendors. On-Time Supplier Delivery Rate can be increased by specifically setting requirements in vendor contracts that define on-time deliveries and providing incentives for on-time delivery.
Download a Sample On-time Supplier Delivery Rate
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