The Significance of On-Time Delivery (OTD)

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On-time delivery (OTD) is the key factor that enables customers to analyse the entire delivery experience. Thus, it acts as a critical factor in customer retention. Low OTD rates lead to an increase in the number of consumer issues and consumer service calls and thus increase the operation costs of your organisation. It also infuriates your customers who choose to place orders from you.

Businesses that deliver their products on time tend to receive more frequent orders. Today, with the rapid rise in online shoppers, this becomes a primary criterion for your consumers to order from you. Greater OTD rates help you establish a loyal customer base and also help you build your brand.

Furthermore, on-time delivery enables greater transparency of your business to guatemala phone number list your customers. Traceability also becomes easier, and it helps you streamline your supply chain processes.

On-Time Delivery Disruptors in 2025: What Challenges Await?
Many businesses find it challenging to provide on-time deliveries at all times. Here are some of the most common challenges that low OTD rates:

Inefficient inventory management
This is probably the leading cause of bad OTD rates. Not having efficient inventory management software and processes to track real-time inventory levels can make optimising and managing your on-hand inventory extremely tedious. It creates backorders and stockouts due to the inability to ship on time. Inventory management software also helps you track all your historical data to predict your future demand and help stock up your inventory. Inventory visibility is another cause of low OTD rates as companies fail to stay on time. It leads to overselling and understocking.