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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