Distribution

Supplier Lead Time Variability: How to Measure It

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Another useful measure is the percentage of supplier orders completed within the expected delivery window.

On-Time Delivery Rate = On-Time Orders ÷ Total Orders × 100

If 18 of 20 orders arrive within the expected period:

18 ÷ 20 × 100 = 90%

The supplier has a 90% on-time delivery rate for that period.

Tracking this figure monthly or quarterly can show whether supplier performance is improving or deteriorating.

It can also reveal situations where average lead time appears acceptable even though delivery commitments are being missed frequently.

For broader gaming-sector operating context, distributors can review the American Gaming Association Commercial Gaming Revenue Tracker, while supplier measurements should continue to rely on the distributor’s own purchasing records.

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