What is Order Cycle Time?
Order Cycle Time is the total time elapsed from when the customer places an order until they receive it. This indicator covers all process stages: order reception, warehouse processing (picking, packing, shipping) and transport to the final destination. Reducing order cycle time is a strategic goal for any logistics operation.
Order Cycle Time Components
Order Entry
Time from when the customer submits the order until it is registered in the WMS system and available for processing. Includes stock validation, credit verification and confirmation.
Warehouse Processing
Picking, packing and shipping preparation time. This is the stage where the WMS has the greatest impact, optimizing picking routes, prioritizing orders and automating tasks.
Transport and Delivery
Time from warehouse departure to final customer delivery. Includes load consolidation, carrier selection and shipment tracking.
How WMS Reduces Order Cycle Time
An advanced WMS drastically reduces order cycle time through: automatic stock allocation (reserves), picking route optimization, intelligent prioritization of urgent orders, direct carrier integration for automatic labeling, and real-time visibility of each order's status.