On-time performance (OTP) rate is one of the most critical and commonly measured key performance indicators (KPI) for anyone in the transportation industry. OTP differentiates you from competition and solidifies your image as a reliable brand.
What is On-Time Performance
We measure on-time performance by comparing our actual service by the arrival or departure schedule we set. For example, if you offer rideshare services, your OTP relates to whether you are able to arrive on the estimated time you indicated; if you are a delivery company, OTP means you are able to meet your promised delivery times.
In transport systems, OTP is expressed as a percentage of the total number of vehicles where a higher percentage of vehicles arriving on time equates to higher OTP rates. Others would measure OTP by setting a lateness threshold, say a vehicle should arrive within the set period no later than x minutes its published schedule time.
Why Does OTP Matter
Regardless of the transportation service you provide, OTP reflects your organization’s performance and your customers’ satisfaction. OTP matters for a number of reasons:
Builds customer trust. When you come when you say you will, it strengthens your position as a brand customers can rely on. A case study of a popular ride-sharing app showed that customers favored the brand because not only are they transparent with their estimated arrival times; they also arrive on time.
Efficient resource allocation. With fleet management, delay in one trip affects the next trip, creating a domino effect. If you want to ensure that you allocate enough drivers and vehicles to match demand, you need to make sure they arrive on time. Higher rates of OTP translate to higher utilization of vehicles resulting in increased fleet productivity.
Guarantees sustainability. Long waiting times result in frustrated customers and a bad reputation. Additionally, long waiting times add unnecessary costs such as increased fuel expense, possible wait time penalties, missed appointments, and lost business deals. An on-time transport service will have a higher utility rate.
GOIN’ Takes You There On Time
To help your business achieve your OTP goals, you need a scheduling software that immediately matches requesting passengers with drivers, optimizes routes efficiently, and ensures on-time pick-up and drop-off times.
GOIN’ is the perfect partner for you as our software allows for route optimization with a high level of accuracy.