What is Order Cycle Time?

If you’re a business owner, then you know that time is money. The faster you can get orders through your system and delivered to your customers, the more money you’ll make. That’s why improving order cycle time is so important.

In this blog post, we will discuss the benefits associated with improving order cycle time and how you can go about doing so.

What Is Order Cycle Time?

Order cycle time (OCT) is the total time from when an order is placed to when it is received. In other words, it is the time it takes to manufacture a product and get it into the hands of the customer.  OCT can be further broken down into several sub-categories, including manufacturing cycle time, procurement cycle time, and delivery cycle time.

There are many factors that can affect order cycle time, including the number of SKUs involved, the complexity of the assembly process, and the lead time for each component. In addition, order cycle times can be affected by seasonal fluctuations and changes in customer demand. OCT is typically measured in days, and companies often strive to reduce their cycle time for each order in order to improve customer satisfaction and reduce inventory levels.

Order cycle time is important because it directly impacts customer satisfaction. If an organization takes too long to fill an order, the customer may become frustrated and cancel the order. On the other hand, if an organization is able to fill orders quickly and efficiently, it will build goodwill and repeat business.

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How to Improve Order Cycle Time?

Reducing OCT is important for any business that holds inventory because it can lead to lower inventory levels and higher customer satisfaction. There are several ways to improve order cycle time. Below we look at a few options your business could try.

Improve Warehouse Flow

Warehouse flow refers to the movement of inventory through the warehouse, from receiving to shipping. By improving warehouse flow, businesses can ensure that orders are processed and shipped more quickly. Additionally, improving warehouse flow can help to reduce errors and improve accuracy. As a result, businesses that take steps to improve their warehouse flow are likely to see a corresponding improvement in their OCT.

Use Software to Maintain Steady Inventory

Order cycle time can be improved by using software to maintain steady inventory. This is because when a company has a lot of inventory, it takes longer to process an order and get it to the customer. By using software to keep track of inventory, companies can make sure they have just enough inventory on hand to fill orders quickly and efficiently. In turn, this can help to reduce order cycle time and improve customer satisfaction.

Keep Measuring Cycle Time

Keeping track of the cycle time for each order and identifying which tasks are taking the longest is vital to running a successful warehouse. Once you know which tasks are causing delays, you can work on streamlining them. For example, if orders are regularly getting held up in the packaging stage, you might want to invest in new packing materials or machinery that can speed up the process.

Outsource to a 3PL Provider

By outsourcing to a 3PL provider, businesses can focus on their core competencies and improve order cycle time. A 3PL provider can manage inventory, plan shipments, and track orders, as well as provide customer service and support. You can also improve your order cycle time by automating order processing and using a warehouse management system. This can help to reduce errors and improve accuracy, as well as optimize operations and improve productivity.

Hire APS Fulfillment, Inc. to Reduce Your Order Cycle Time

Reducing order cycle time is essential for any business that wants to stay competitive. If you are looking for ways to reduce your OCT, outsourcing to APS Fulfillment, Inc. is an excellent solution.

We offer full-service e-commerce fulfillment out of Miami that includes state-of-the-art warehouse management software (WMS), and we make inventory management and goods tracking easy. We’ll also support your business and automate the warehousing, prepping, shipping, picking, and packing of your orders!

Get in touch with us and one of our consultants will tailor a fulfillment plan designed to grow your business. Book a consultation by calling (954) 582-7450 or email [email protected].