Thursday, 16 May 2013

What is Order Fulfilment Cycle Time?

The order fulfilment cycle time is the time between customers placing an order and receiving the goods.  Businesses can benefit by reducing the cycle time to reduce costs and increase customer confidence, such as:

·         possibility on price increment
·         costs reduction on distribution, waste & labour
·         improvement on core business capabilities
·         investment intensity reduction on raw materials & inventory

The order cycle have different definitions to different audience. From customer prospective, it begins when an order was place but businesses might defined the cycle starts when a confirmation was developed / received in certain department or an order entry has been inputted into the system. 

Discovering when the cycle ends is often confusing for businesses as it could end when you dispatch the parcel or when it has been received.  Customer on the other hand,  mainly focus factors such as, the delivery time committed once the order was placed, the ability to track the goods, and the condition of goods received...etc.

It doesn’t matter where the cycle starts and ends, more importantly, businesses need to address the factors that a customer will experience and demand, and include these factors as a measurement to evaluate the business internal processes.

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