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Oct 6, 2025
The percentage of orders dispatched and delivered within the promised timeframe. It reflects the efficiency of fulfilment operations, courier performance, and workflow planning. Monitoring on-time shipping rate helps maintain customer satisfaction, identify bottlenecks, and improve operational reliability.
On-Time Shipping Rate is the percentage of orders dispatched and delivered within the promised timeframe. It reflects the efficiency of fulfilment operations, courier performance, and workflow planning. Monitoring on-time shipping rate helps maintain customer satisfaction, identify bottlenecks, and improve operational reliability.
It's one of the most customer-facing metrics you'll track.
Why On-Time Shipping Matters
Customers don't care about your internal challenges. They care about receiving their orders when promised.
Miss that promise, and you've damaged trust. Do it repeatedly, and customers shop elsewhere. Amazon has trained everyone to expect fast, reliable delivery. If you can't match that expectation, you're at a competitive disadvantage.
Late deliveries generate customer service complaints, negative reviews, and lost repeat business. Research shows that 84% of consumers won't return to a retailer after just one poor delivery experience.
Measuring On-Time Shipping Rate
The calculation is straightforward:
On-Time Shipping Rate = (Orders Shipped On-Time ÷ Total Orders) × 100
But "on-time" needs a clear definition:
Dispatch-based measurement: Orders shipped by the promised dispatch date (what your warehouse controls).
Delivery-based measurement: Orders delivered to the customer by the promised delivery date (includes courier performance).
Most operations track both. You control dispatch. Couriers control delivery. Separating these metrics shows where problems actually occur.
Example:
1,000 orders placed
950 dispatched on time (95% dispatch rate)
920 delivered on time (92% delivery rate)
The 3% gap between dispatch and delivery highlights courier performance issues, not warehouse problems.
What Affects On-Time Shipping
Internal Factors (Your Control)
Order cycle time: Time from order receipt to dispatch. Slow processing delays everything downstream.
Pick accuracy: Picking errors require repicking, delaying dispatch.
Staffing levels: Inadequate staff during peak periods creates bottlenecks.
Process efficiency: Inefficient workflows waste time. Poor layout means excessive walking. Unclear processes create confusion.
Inventory accuracy: Stock not where the system says it is? Pickers waste time searching, delaying orders.
Technology reliability: System downtime stops operations. Faulty scanners slow picking. Printer jams delay labelling.
External Factors (Limited Control)
Courier performance: Carriers are missing collection times or delaying deliveries.
Weather and disruptions: Storms, strikes, traffic; external events beyond anyone's control.
Peak season demand: Black Friday and Christmas strain both your operation and courier networks.
Geographic challenges: Remote delivery addresses naturally take longer.
Impact on Customer Satisfaction
On-time shipping directly drives customer satisfaction. Fast, reliable delivery builds trust. Delays and missed promises destroy it.
Customers increasingly choose retailers based on delivery speed and reliability. Two identical products at identical prices? They'll pick the retailer with better delivery performance.
On-time shipping also affects review ratings. Late delivery is one of the most common complaints in negative reviews, even when the product itself is perfect.
Improving On-Time Shipping Rate
Optimise order cycle time: Review your fulfilment process to identify delays. Common bottlenecks include inefficient picking routes, slow packing, or delayed carrier collections.
Implement robust WMS: Modern warehouse management systems optimise workflows, provide real-time visibility, and automate task prioritisation to speed fulfilment.
Set realistic delivery promises: Don't promise what you can't deliver. Better to under-promise and over-deliver than the reverse. Factor in processing time, courier transit time, and buffer for contingencies.
Choose reliable carriers: Not all couriers perform equally. Track courier SLA performance and switch underperforming carriers.
Improve inventory accuracy: Regular cycle counting maintains accuracy above 98%, preventing delays from stock searches.
Plan for peaks: Anticipate high-volume periods. Hire temporary staff early, increase inventory of fast-movers, and communicate potential delays proactively.
Technology Solutions
Modern warehouse management systems improve on-time shipping through:
Real-time tracking: See exactly where each order is in the fulfilment process. Identify bottlenecks immediately.
Automated prioritisation: The system automatically prioritises urgent orders or those approaching dispatch deadlines.
Courier integration: Automatic label generation, tracking updates, and performance monitoring.
Reporting and analytics: Detailed metrics showing on-time performance by day, week, product, or courier. Identify trends before they become problems.
Getting Started
Define "on-time" – What's your promise? Same-day dispatch? Next-day delivery?
Establish baseline – Measure current performance for 2-4 weeks.
Set targets – Realistic goals based on industry standards and capabilities.
Identify problem areas – Where do delays occur most?
Implement improvements – Focus on high-impact changes first.
Monitor continuously – Track performance daily, review weekly.
On-time shipping isn't just an operational metric. It's a promise to your customers. Break that promise repeatedly, and operational efficiency won't save you; customers will simply leave.
Get it right, and you build trust, generate positive reviews, and create a competitive advantage through reliable delivery.
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