Procurement Glossary
On-time delivery: Reliable delivery dates as a success factor in Procurement
November 19, 2025
On-time delivery refers to the reliable adherence to agreed delivery dates by suppliers and is a key success factor in modern procurement management. It has a significant influence on companies' planning reliability, production processes and customer satisfaction. Find out below what adherence to delivery dates means, how it is measured and which methods are used to improve delivery reliability.
Key Facts
- Adherence to delivery dates measures the percentage of agreed delivery dates met by suppliers
- Typical target values are between 95-99% depending on the industry and criticality of the goods
- Late deliveries can cause production downtimes and high follow-up costs
- Modern ERP systems enable automated monitoring and early warning systems
- Adherence to delivery dates is an important part of supplier evaluation and development
Contents
Definition: Adherence to delivery dates
On-time delivery describes the ability and reliability of suppliers to meet agreed delivery dates and deliver goods or services at the promised time.
Key aspects of adherence to delivery dates
The assessment of adherence to delivery dates covers several important dimensions:
- Punctual delivery on the agreed date
- Completeness of the delivered quantities
- Quality of timely communication in the event of deviations
- Proactive notification of possible delays
On-time delivery vs. delivery time
While lead time describes the time between order and delivery, on-time delivery focuses on adherence to the promised delivery date. A short delivery time is of little use if the supplier is unreliable.
Importance of adherence to deadlines in Procurement
On-time delivery is crucial for maintaining efficient supply chains and has a direct impact on service levels to internal and external customers. It enables precise production planning and reduces safety stocks.
Methods and procedures for meeting deadlines
Various approaches and tools support purchasing organizations in measuring and improving supplier on-time delivery.
Measurement and monitoring
On-time delivery is systematically recorded by continuously monitoring delivery performance. Modern ERP systems automatically document target and actual delivery dates and calculate corresponding key figures.
- Automated data capture from goods receipt postings
- Dashboard-based real-time monitoring of critical deliveries
- Early warning systems for impending missed deadlines
Supplier development and management
Proactive measures to improve on-time delivery include structured supplier development programs and regular performance reviews. The supplier score integrates on-time delivery as an important evaluation factor.
Contractual protection
Contractual clauses with penalties for missed deadlines create financial incentives for punctual deliveries. At the same time, realistic delivery times should be agreed that take buffer times for unforeseen events into account.
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Key figures for controlling
Various key figures enable the objective evaluation and continuous improvement of supplier on-time delivery.
On-Time Delivery Rate
The On-Time Delivery Rate measures the percentage of deliveries that are received on the agreed date. Typical target values are between 95-99% depending on the industry and criticality of the materials.
On-Time In-Full (OTIF)
The On-Time In-Full KPI combines adherence to delivery dates with adherence to quantities and offers a holistic view of delivery performance. It takes into account both temporal and quantitative deviations.
Lead time key figures
The goods receipt lead time and PO cycle time measure the efficiency of internal procurement processes and identify optimization potential. Short internal throughput times give suppliers more time for order processing.
Risk factors and controls for adherence to deadlines
Various internal and external factors can jeopardize adherence to delivery dates and require appropriate risk management strategies.
External disruptive factors
Unforeseeable events such as natural disasters, strikes or pandemics can force even reliable suppliers to miss deadlines. Diversified supplier portfolios and geographical spread reduce these risks.
Capacity bottlenecks at the supplier
Overloading supplier capacities leads to delays and impairs schedule adherence. Regular capacity checks and long-term framework agreements create planning security for both sides.
- Continuous monitoring of supplier capacity utilization
- Building strategic partnerships with key suppliers
- Development of backup suppliers for critical materials
Internal planning errors
Unrealistic deadlines or last-minute changes to order quantities can overwhelm suppliers. An improved requisition cycle time gives suppliers more lead time for production planning.
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Practical example
An automotive supplier implements a digital supplier cockpit to improve on-time delivery. The system integrates order data, production plans and logistics information in real time. Escalation processes are automatically triggered for critical deliveries if delays are imminent. Thanks to proactive communication and alternative transport routes, on-time delivery has increased from 87% to 96%.
- Implementation of a real-time monitoring system
- Definition of clear escalation processes in the event of deviations
- Development of alternative logistics routes for critical deliveries
Trends & developments relating to adherence to delivery dates
Digitalization and new technologies are changing the way companies monitor and control adherence to deadlines.
AI-supported prediction models
Artificial intelligence enables more precise forecasts of delivery delays by analyzing historical data, weather conditions and traffic situations. Machine learning algorithms identify patterns and risk factors that human planners might overlook.
Real-time tracking and IoT
Internet-of-Things sensors and GPS tracking provide real-time visibility of shipment status and enable proactive communication in the event of deviations. This transparency significantly improves forecast accuracy.
Collaborative Planning
Increased collaboration between Procurement, suppliers and logistics service providers through joint planning platforms. Integrated systems automatically synchronize production plans and delivery dates and reduce communication errors.
Conclusion
On-time delivery is a critical success factor for efficient supply chains and requires systematic measurement, continuous monitoring and proactive control. Modern technologies such as AI and IoT open up new possibilities for more precise predictions and real-time control. Successful companies invest in long-term supplier partnerships and create win-win situations through joint planning processes and fair contract terms.
FAQ
How is adherence to delivery dates calculated?
On-time delivery is calculated as a percentage of on-time deliveries to the total number of deliveries. A delivery is deemed to be on time if it arrives on the agreed date or earlier. Delays are counted as deviations, regardless of the duration of the delay.
What are the usual tolerances for adherence to delivery dates?
Tolerances vary depending on the industry and material type. In the automotive industry, strict tolerances of ±1 day often apply, while tolerances of ±3-5 days may be acceptable for less critical goods. It is important to define and communicate tolerances consistently.
How can suppliers be supported in improving on-time delivery?
Support is provided through joint planning workshops, training on lean methods and financial support for capacity expansions. Long-term contracts give suppliers planning security for investments in production capacities and quality systems.
What role does adherence to delivery dates play in supplier evaluation?
Adherence to deadlines is typically one of the most important evaluation factors alongside quality and price. It is included in the overall assessment with a weighting of 20-30% and has a significant influence on award decisions and the development of strategic partnerships.
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