Which KPI measures the timeliness of supplier deliveries?

Which KPI measures the timeliness of supplier deliveries?

• A. Fill rate
• B. On-time delivery
• C. Lead time
• D. Quality defect rate

Answer: (B)

Timeliness of supplier deliveries is about meeting the delivery date the supplier committed to. The KPI that captures this is the on-time delivery measure. It calculates the percentage of orders that arrive on or before the agreed delivery date. A high on-time delivery rate indicates reliable suppliers and helps with production planning and inventory control. Lead time, while related, measures how long it takes from placing the order to receiving it, regardless of whether it meets the promised date, so it doesn’t directly quantify timeliness against commitments. Fill rate and quality defect rate focus on quantity completeness and quality, not timing, so they don’t capture delivery punctuality.

Timeliness of supplier deliveries is about meeting the delivery date the supplier committed to. The KPI that captures this is the on-time delivery measure. It calculates the percentage of orders that arrive on or before the agreed delivery date. A high on-time delivery rate indicates reliable suppliers and helps with production planning and inventory control. Lead time, while related, measures how long it takes from placing the order to receiving it, regardless of whether it meets the promised date, so it doesn’t directly quantify timeliness against commitments. Fill rate and quality defect rate focus on quantity completeness and quality, not timing, so they don’t capture delivery punctuality.