Thursday, 30 May 2013

The Key Takeaways of the Order Fulfilment Cycle

Calculating the order cycle time helps you to spot any problems that need to be addressed. You must establish the trigger for the cycle and the point where the cycle ends.

When managing your order fulfilment cycle, there are five key takeaways that will help you to get the correct calculations. These are:

1.     The only way to calculate the order fulfilment cycle is to add the net order over a set period, divide the result by the number of orders taken in that period. This will give you the order fulfilment cycle time.

2.     When you are focused on customer feedback or benchmarks you need to look at root-cause diagnostic metrics.

3.     It is essential to look at the configurations on the supply chain to discover what the influences are such as source, make and delivery cycle times. It may be a combination of all three.

4.     Classify the different orders by their types and supply chain configurations. By doing so you can use the diagnostic date to find the cause of the problems.

5.     Metrics should be used to diagnose the issues and not to calculate. When making calculations use the transaction data.

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