Warehousing Metrics Glossary

On-Time Shipment Rate

Definition, meaning, and explanation of

On-Time Shipment Rate

What is On-Time Shipment Rate?

Percentage of orders shipped on or before the promised date.

How to calculate On-Time Shipment Rate?

(Total On-Time Shipments / Total Orders) * 100 where on-time shipments are all shipments where the order cycle time < promised delivery SLA

What is the business impact of On-Time Shipment Rate?

Higher on-time shipment rates lead to increased customer satisfaction and repeat business.

Industry benchmark On-Time Shipment Rate

The general industry benchmark for On-Time Shipment Rate is 95-98%

How to improve On-Time Shipment Rate?

  • Implement automated order prioritization corresponding to the SLAs.
  • Automate and enhance shipping processes.
  • Improve carrier partnerships.
  • Implement better demand forecasting to reduce stock-out situations and improve order fill rate.

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