On Time Delivery

On-time delivery or OTD is one of those indicators that electronics manufacturers must frequently measure. Although OTD measurement is important, many manufacturers still have difficulty figuring it out. Often, OTD metrics are not understood as they should be. This is about the definition of OTD and how to properly measure it.

OTD is a key performance indicator (KPI) that measures order fulfillment. OTD represents a part of the entire supply chain management discipline, covering delivery reliability and delivery performance. Usually, the formula governing OTD is built into your ERP software. The OTD metric represents the time period or window during which delivery may occur. For example, if a customer wants to deliver a batch of multi-layer PCBs before August 21, your OTD will include the time frame you defined.