Order Cycle Time
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Category:  
Operational

Measures the total time taken from receiving a customer order to delivery.

What it Measures ?

Time from order placement to completion.

Relevant StakeHolders 

Order Management, Fulfillment

In-depth Use Case / Real-world Example

A company manufacturing office furniture calculates Order Cycle Time by tracking the time from when a customer places an order to when it is delivered. For example, if an order is placed on day 1 and delivered on day 5, the cycle time is 5 days. Reducing order cycle time helps improve customer satisfaction and reduces the time for inventory turnover.

KPI Definition

Business Value

Movement Direction

Sample Formula

Order Completion Time - Order Placement Time

Should Aim For
1
2
3
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