ontime

OnTime Shipping Performance is a calculation of the number of Order Lines shipped on or before the Requested Ship Date versus the total number of Order Lines. Throughout the following text, I refer to "shipped" ontime. BUT if actual "delivery" data is available, it may be substituted and compared to the Requested Delivery Date. (such as with an EDI#214 ).

*OnTime: Shipped on or before the requested ship date (except if the receiving party does not accept early shipments).

Sample OnTime Metrics:

OnTime Line Count: The amount of order lines shipped OnTime* versus the amount of lines ordered.
example- ABC Company orders 10 products (one order line each) on its Purchase Order #1234. The Order has a Requested Ship Date of March 1. The manufacturer ships out 5 line items on February 28 and 2 items on March 1 and the remaining 3 items on March 10. The OnTime LineCount for this Purchase Order is 70%. It is calculated based on the Requested Ship Date OR, if available, substitute actual Delivery Date vs Requested Delivery Date.
Calculation: Number of Order Lines Shipped on or before the Requested Date / Total Number of Order Lines Ordered
(7/10 = 70%)

OnTime SKU Count: The number of SKU's (Stock Keeping Units) ordered and shipped is taken into consideration. Above, we consider each Order Line to have an equal value (1 ). Here, we count the SKU's per Order Line.
example: If on Line 1, the order was for 30 skus of product "AB" and on line 2, they ordered 10 skus of item "AC". The Requested Ship Date is April 1st. If Line 1 ships on March 28 and line 2 on April 20, the the SKU Fill Rate is 75%
Calculation: Number of SKUs Shipped OnTime / Total Number of SKUs Ordered (30/40 = 75%).

OnTime Case Count: The amount of cases shipped OnTime versus the amount of cases ordered.
example- ABC Company orders 6 products that total 200 cases, on its Purchase Order #1235. The manufacturer ships out 140 cases on 3/1/01 and the remaining 60 cases on 3/10/01. The Requested Ship Date is 3/1. The Case OnTime Rate for this Purchase Order is 70%. The number of Order Lines is not considered in this calculation. This OnTime measure gives "weight" to the order lines that are shipped out.
Calculation: Number of Cases Shipped OnTime / Total Number of Cases Ordered . (140/200 = 70%)

OnTime Value Rate: Same as above, except the order line value is used instead of cases.
Calculation: Value of Order Lines Shipped OnTime / Total Value of the Order ($400/$500 = 80%)

Our goal is to guide companies that are looking to optimize their Supply Chain. Originally, we intended on answering questions about Inventory Control, Sourcing, Manufacturing, Distribution and Supply Chain Metrics. However, we currently do not have the resources to answer individual questions.
If you want to contact me, email me at: john@supplychainmetric.com

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For information on Inventory Turns, Fill Rate Measurement, Backorder Reporting or any other Supply Chain Metric, click on the links to the left. The text that appears on this website is the opinion of the webmaster. Metrics may or may not be uniform across all industries. All data listed here may be used as a general guide, but it's accuracy is not guaranteed. Please consult a qualified Supply Chain professional for more details on Supply Chain Measurements. Other Supply Chain Websites
This site is owned and maintained by Michelle Taras & John Taras CPIM, PMP

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VendorManagedInventory.com - information on Vendor Managed Inventory
InventoryTurns.com - additional information on how to calculate inventory turns or inventory turnover.
SupplyChainManagementNews.com - News stories about Supply Chain Management
SupplyChainDefinitions.com - various definitions of supply chain terms
SupplyChian.com - various supply chain info (yes, i know it's mis-spelled)
SupplyChainPurchasing - a new site Michelle is developing. All about Supply Chain Purchasing.
BusinessPlanningandConsulting.com - a website that discusses Business Plans and Consulting (business planning)

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