Delivery cycle time definition

What is Delivery Cycle Time?

Delivery cycle time is the time span between the acceptance of an order from a customer to the ultimate delivery of the product to the customer. This is a critical process measurement, since being able to process an order within the minimum possible amount of time is a marketable skill that can be used to attract more customers. Management wants to see this figure at the level of the individual order so that it can investigate those orders that require an unusually long time to process.

Delivery Cycle Time Best Practices

A business has several options for improving its delivery cycle time, and therefore the associated customer satisfaction level. One option is to have customers directly enter their orders into the company’s order processing system, which eliminates order entry time and reduces order errors. Another option is to overstock all variations on the inventory being sold, so that instances of inventory backorders are quite rare. Finally, the seller could use an overnight delivery service to ensure that the completed order reaches the customer as soon as possible.

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