OTD controversy

It has been long every one would like to measure OTD (On Time Delivery) as part of important KPI, why? Really Customer’s satisfaction?

Quite many times we do measure performance for the sake of measuring only.
By understanding the underlying background of customer satisfaction, hope we can understand better, how should we measure this OTD:
- Is this really what customer request?
- How accurate is the requirement?
- How much would customer or shipper pay for this?

Examples of potential conflict:
- Cost : Customer want to get new style of product and ready to pay premium. Customer cooperate to delay/earlier delivery, to get best price… still the same product anyway.
- Time : Customer want to get product at origin time requested Vs Customer request for delay delivery on existing order due to customer’s issue (ie. Storage, production, etc)

Is OTD based on Customer driven? Or negotiation?