Data & Calculations
Vendor Ontime Delivery (VOTD): This is done by tracking the difference between supplier’s promised date and actual received date for each completed purchase delivery.
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For each completed purchase delivery:
- Delta = Store_Received_Date –Supplier_Promised_Date
- If Delta >1, Late delivery, else Ontime delivery.
It assumes that store received is no later than 24 hours of supplier’s promised date. The assumption may be different by companies.
For a period, say Month-To-Day (MTD) or Year-to-Day (YTD):
- VOTD % = 1- (no of late deliveries)/(total purchase order lines)
VOTD is used to access supplier delivery performance. It can lead to supplier lead time analysis and sourcing strategies.