On-Time Delivery (OTD)

On-time delivery measures whether freight arrives at its destination within the scheduled window – typically defined by a delivery appointment, a committed transit day, or a customer-specified "deliver by" date. It's the simplest and most universal carrier performance metric, and the one customers feel most directly when it's missed.

OTD is calculated as the number of on-time deliveries divided by total deliveries over a given period, expressed as a percentage. The definition of "on time" varies by shipper and customer – some allow a two-hour grace window around an appointment, others count anything past the scheduled minute as late. Consistency in how you define the measurement matters as much as the number itself, especially when comparing carriers or reporting to customers who may define it differently.

Late deliveries cascade. In retail, a missed delivery window can mean a refused load, a rescheduled appointment days later, and a compliance penalty. In food and beverage, it can mean spoiled product. In manufacturing, it can shut down a production line waiting for components. OTD is often the first metric shippers look at on a carrier scorecard because it reflects the carrier's ability to do the fundamental job – get the freight there when promised.

Tracking OTD accurately requires reliable shipment data – actual delivery timestamps, not just carrier self-reported updates. Shippers who rely on manual check calls or carrier portal spot-checks often have incomplete OTD data, which makes the metric unreliable. Automated tracking that captures delivery events in real time produces the clean dataset needed to hold carriers accountable and identify lanes where service consistently lags.