A highly competitive eCommerce business can provide an exceptional order cycle time. In addition, it brings positive customer feedback to your brand. But the question is, how can you fulfill orders fast without compromising precision?

What is Order Cycle Time?

Order cycle time is one of the key performance indicators (KPI). It involves the time it takes to complete an order. Also, it considers all the processes that start from the fulfillment warehouse. Finally, it receives and handles the order, then hands it to the carrier for customer delivery. An efficient customer order cycle is shorter. It positively impacts your business by attracting new customers while retaining the old ones. As a result, it expands your profits more.

How to Calculate Order Cycle Time?

To calculate your order cycle time, you must check from order to shipping date. It needs the amount of time it takes to complete all orders. Check the formula below. (order fulfillment in hours) * (number of seconds per hour [3,600] / (total orders shipped for the day) = Average Order Cycle Time For example, a 12-hour period shipped 1,500 orders. So you calculate the order cycle like this. (12 * 3,600) / 1,500 = 28.8 second per order It means that your order cycle takes 28.8 seconds per order. It is a short period and efficient for your business.

Importance of Order Cycle Time

An order cycle is one of the metrics checked to measure a business’s fulfillment efficacy. A shorter cycle time reflects your company’s responsiveness to customer orders.

Contributes to customer satisfaction

An order cycle influences customer satisfaction. Delays in fulfillment and longer delivery times result in a longer cycle time. Conversely, a seamless fulfillment experience enables short order cycle. For example, if you can deliver orders within two days, you gain higher satisfaction.

Rapid detection of supply chain issues

Order cycle time helps determine the possible problems in the supply chain. A longer order cycle indicates reassessment of the entire supply chain process. It means you can identify the root cause of inefficiencies and remove or improve unnecessary procedures.

Measure scale readiness

An order cycle time indicates your business is ready for the next level. To scale your business, you need a cost-efficient supply chain to handle more orders without compromising the accuracy of your overall performance. In addition, you can expand your operations if you have a consistent short-order cycle time. Speeding your order cycle helps entice new buyers without forgetting your loyal customers.

5 Tips in Speeding Order Cycle Time with Accuracy

Gear your eCommerce business with a speedy and accurate order cycle with the following.

Enhance the travel time

Travel is a significant factor in your order picking cycle time. You must cut down the distance to reduce the cycle time. Usually, it is within the warehouse. For example, allot enough space between shelves and aisles so the staff can quickly move around. Also, place the fulfillment bay near the picking area. Avoid setting roadblocks that can slow down the process of picking and packing.

Manage rules and limits

Fulfillment employees must know the protocols and limits. Set guidelines and train the staff about it. For example, picking items in batch size cuts down your order cycle. It helps get customers’ orders from the racks to the packing bay. Also, leave instructions on where to store returned products. It eases the process of sorting the items back to their place. In addition, set limits on reordering inventory. It is crucial as stockouts and backorders slow down order cycle time. Finally, be transparent with your clients. Explain the shipping policies like the shipping cutoff times. It helps you set realistic expectations for your customers.

Prevent stock-outs

Out-of-stock is a detrimental setback in your order cycle time. How can you fulfill an order if you have nothing stored? Avoid such an inventory dilemma by replenishing your stocks before they run out. It is possible if you can monitor all your items rigorously. Implement updated technologies that track inventory and notify when a reorder is necessary. Plus, you can configure the minimum and maximum inventory levels needed for replenishments. This way, you have an automatic stock replenishment and continuous supply chain.

Continuous monitoring of cycle time

Order cycle time changes now and then. Any disruption in the supply chain can significantly affect your business. So constantly monitor and observe the possible causes of the fluctuations. For example, an unforeseen delivery exception can prolong your usual order cycle. If this happens, prepare for an alternative move to fasten your time. On the other hand, the use of automation shortens order cycle. Maintain the technology as it improves your warehouse process. Whichever the result, you can immediately put necessary action.

Outsource order fulfillment center

A practical yet sometimes costly way of speeding up your order cycle time is fulfillment partnership. Their expert order process helps you lessen all the hindrances in preparing a customer’s order. However, if you outsource fulfillment to a 3PL, it’s like leaving everything to the expert. A great example is Red Stag Fulfillment Centre. Once it receives an order, it picks, packs, and ships items immediately with accuracy. For instance, Red Stag has advanced technology that integrates with an online store. It processes every customer order at once. No delays and offers same-day fulfillment. In addition, Red Stag Fulfillment monitors and tracks every inventory that comes in and out of the warehouse. It improves your inventory accuracy by reducing shrinkage and high-security procedures. Therefore, it ensures that all your products are safely stored before shipping. Most importantly, Red Stag Fulfillment offers Agile management services. Its practices focus on revolutionizing business procedures which can lower your order cycle time. As a result, you can succeed in growing and scaling your business. Every minute is vital in an eCommerce business. You can shave off your order cycle if you implement the quick tips above. But always remember that quality is far more important. Never risk the product accuracy for the sake of lowering the numbers. So gear up with a trusted 3PL like