An order carries more dates than most people expect: the date it was placed, the date the customer asked for, the date the supplier committed to, the dates it ships and arrives. They are easy to confuse, and confusing them is how a supplier ends up “on time” by its own measure and late by the customer’s. This glossary defines each term in plain language, in the order the dates happen.
For how ATP and CTP actually calculate the promise, see the full guide: Order Promising: How ATP, CTP and Delivery Dates Work.
What is order promising?
Order promising is the process of committing to a delivery date when a customer places an order. The date comes from checking inventory that is available to promise (ATP) and, when stock falls short, whether the order can be made or sourced in time: capable to promise (CTP). A good promise is one the supplier can keep, given at the moment the order is taken.
The dates on an order, in the order they happen
| Term | Also called | What it means | Set by |
|---|---|---|---|
| Order date | Order entry date | The date the customer places the order. | Customer |
| Requested delivery date (RDD) | Requested date, customer request date | The date the customer asks to receive the goods. A request, not a commitment. | Customer |
| Must arrive by date (MABD) | Arrive-by date | A retailer’s deadline for the shipment to reach its distribution center, often with penalties if missed. | Customer (retailer) |
| Promise date | Confirmed date, committed date | The delivery date the supplier commits to after checking ATP or CTP. It may differ from the RDD. | Supplier |
| Firm delivery date | Fixed date | A promise date the supplier treats as fixed; changing it needs the customer’s agreement. | Supplier and customer |
| Material availability date | Availability date | The date the goods are available to pick, pack or assemble. | Supplier’s plan |
| Ship date | Dispatch date, goods issue date | The date the goods leave the supplier’s facility. | Supplier |
| Dock date | Receipt date, in-DC date | The date the shipment arrives at the customer’s receiving dock. | Carrier and customer |
| Delivery date | Arrival date | The ship date plus transit time: when the goods reach the customer. | Result of the above |
| Cancel date | Do-not-ship-after date | Common on apparel and retail purchase orders: after this date the buyer may cancel anything not yet shipped. | Customer |
Lead-time terms
- ARO (after receipt of order). Lead time quoted from the day the supplier receives the order: “ships 4 to 6 weeks ARO.”
- Lead time. The time from order to availability. For stocked items it may be zero; for made-to-order items it includes components and production.
- Issue margin. The days needed to pick, pack and load an order once the goods are available. Small, and the cause of many “the system said Tuesday” disputes.
- Transit time. Days in transit from the supplier’s dock to the customer’s.
A worked example
A customer orders on March 2 with a requested delivery date of March 20. Transit takes 3 days and the warehouse needs 2 days to pick and pack. Working backward from the request: the latest ship date is March 17, so the goods must be available by March 15.
- If ATP shows enough stock on hand or arriving by March 15, the supplier can promise March 20, the date requested.
- If the next receipt lands on March 18, the earliest the goods can ship is March 20, so the supplier works forward and promises March 23, or offers to ship part of the order now and the rest later.
- If the item is made to order, CTP checks components and production capacity to find the date the order could be finished, then adds the same pick, pack and transit time.
Either way, the customer gets a date the supplier can keep, and on-time performance is measured against that promise date, not against the order date or a standard lead time.
Frequently asked questions
What is order promising?
Order promising is the process of committing to a delivery date when a customer places an order. The date comes from checking inventory that is available to promise (ATP) and, when stock falls short, whether the order can be made or sourced in time (capable to promise, CTP).
What does RDD mean in shipping?
RDD stands for requested delivery date: the date the customer asks to receive the goods. It is a request, not a commitment. The supplier answers with a promise date, which may match the RDD or fall later.
What is a promise date on an order?
The promise date, also called the confirmed or committed date, is the delivery date the supplier commits to after checking availability. It is the date on-time performance should be measured against.
What is the difference between the requested date and the promise date?
The requested date is what the customer wants; the promise date is what the supplier commits to. When the two differ, the supplier either offers the later date, splits the order, or finds supply elsewhere to meet the request.
What is a dock date?
The dock date is the date a shipment arrives at the receiving dock, usually the customer’s warehouse or distribution center. Retailers often schedule receiving by dock date, and some set a must-arrive-by date (MABD) that the shipment has to meet.
What is a dispatch date?
The dispatch date, or ship date, is the date the goods leave the supplier’s facility. The delivery date is the ship date plus transit time.
What does ARO mean in lead time?
ARO means “after receipt of order.” A quote of “ships 4 to 6 weeks ARO” means the goods ship 4 to 6 weeks after the supplier receives the order, not after the quote or the order date on the customer’s side.
How is a delivery date calculated?
Work out when the goods will be available (from ATP, or CTP for made-to-order items), add the time to pick, pack and load (issue margin), then add transit time to the customer. The result is the earliest delivery date the supplier can promise, which is then compared with the requested date.
Getting promise dates right
Definitions are the easy part. Reliable promise dates depend on accurate receipt dates, lead times and allocations, and on a promising method that fits how you sell. K3’s consultants have implemented order promising and allocation planning for manufacturers, distributors and retailers on BlueYonder, SAP and other platforms. The full order promising guide covers the methods, or talk to us about yours.