Customer Order Cycle Time: Let’s Get Acquainted with This Supply Chain KPI!
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Understanding Customer Order Cycle Time
Supply chain KPIs certainly can’t be separated from what is called customer order cycle time. Customer order cycle time is the time required by consumers from placing an order to receiving the product. The process consists of order processing, preparation, and delivery.
For more details, take a look at the customer order cycle time flows below:
Customer Orders
This process starts when consumers buy an item either offline or online. It continues when the consumer submits information regarding payment and delivery details.
Customer Entry
The company/manufacturer receives a notification when customers want to buy a product. Companies usually monitor this process as a consideration in stock management.
Manufacturing Orders
The system forwards goods orders to the factory or warehouse. Depending on the retail system settings, it can be counted when a manufacturer starts to produce items or when a warehouse clerk selects an item to ship from the associated warehouse.
Warehouse Packing
In this process, goods from the warehouse are assigned to the clerk for being delivered to the customers.
Delivery
This process happens when a store clerk sends goods through a delivery officer. At this stage, the company doesn’t have much control over the product unless the delivery process is carried out by an internal staff from the company itself.
Read More:
5 Tips for Stock Management for Your Business!
Utilizing Technology to Achieve the Most Efficient Route Planning
How To Measure Customer Order Cycle Time
Crucial Items Regarding Customer Order Cycle Time
There are several things that you must pay attention to, so this KPI can be fulfilled properly, such as:
- Warehouse flow evaluation
- Vendor contract evaluation
- Late delivery handling
- Stock replenishment
Also, make sure to use the right technology to monitor customer orders and manage the product stock to optimize your customer order cycle time.
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