Perfect Order Measure
Performance to Promise
Supply Chain Acronyms
Reference Link to this website
On Time Performance
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
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
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 =
OnTime Value Rate: Same as above, except the order line value is used instead of
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: email@example.com
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