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customer service

Order Cycle Time

Elapsed time from customer order receipt to delivery.

Definition

Elapsed time from customer order receipt to delivery.

Why it matters

Cycle time is what customers actually experience, and reducing it usually reduces inventory too.

Formula

Order Cycle Time = Delivery Date and Time - Order Receipt Date and Time

Example

Order received Monday 09:00, delivered Thursday 15:00 = 3.25 days.

How to interpret it

Break it into order processing, pick and pack, dwell and transit. The bottleneck is rarely where people assume.

How to improve it

Remove approval and release delays, cut dock dwell, and align cut-off times with carrier schedules.

Common mistakes

Reporting only the average and ignoring the long tail that generates most complaints.

Related KPIs

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