Understanding Order Cycle Time
How we calculate. Average = sum of (order start → delivery/ship) ÷ orders. The form uses the same arithmetic as the worked examples on this page. See our methodology and accuracy policy.
Real-world scenario: A typical Order Cycle Time case uses total cycle time 2400 and orders 300. Enter the same figures below to reproduce the worked path.
What is Order Cycle Time?
An end-to-end customer lead-time KPI. Document whether the end event is ship confirm or proof of delivery.
- Start = order place/release per policy
- End = ship or POD—label it
- Same unit for totals (hours or days)
The Formula
Worked Example
Common Use Cases
- Customer promise: lead-time SLAs
- Network design: DC vs direct
- Omnichannel: ship-from-store vs DC
Pro Tips
- Separate B2B and DTC
- Exclude cancelled orders
- Pair with OTD/OTIF
Limitations: Order Cycle Time results are educational logistics and supply-chain planning aids—not SLAs, carrier contracts, or inventory valuation advice. Confirm definitions with your WMS/TMS and finance policies.
FAQ
Ship date or delivery date?
Pick one end event and keep it stable. Delivery includes transit; ship confirm stops at the dock door.
What if orders is 0?
Cycle time is undefined—enter at least one order.
Authoritative References
For logistics and supply-chain KPI definitions, consult:
- CSCMP — supply chain management resources
- ASCM / APICS — operations and inventory body of knowledge
- ISO 28000 — security management for the supply chain (context)