A perfect order, with the correct average order cycle time, seems complicated. Total Logistics Designs believes there is a formula to follow to strike it right every time.
According to the Association of Supply Chain Management, many moving parts need to be checked in the logistics process. This includes the right product, the right quantity, the right condition, and, of course, the right delivery time at the right price.
But how do you determine the right time? According to the association, it’s defined by the average order cycle time and the elapsed time between the order and delivery. That can be calculated by taking the delivery date and subtracting the order date, divided by the total number of orders.
What is a long order delivery time?
According to Australia Post, long order delivery times are based on the number of business days it takes for a parcel to arrive, measured from the day it’s posted. This uncertainty regularly causes retailers headaches and can be highly frustrating to plan.
According to Total Logistics Designs, “short-term operational causes of lengthy delivery times are usually well-known.” However, there are some warning bells. The company advises retailers to review their “strategic fulfillment and distribution design choices.” This is to see if they are causing or contributing to delays.
Operational causes delaying delivery
Many things can go wrong in the delivery cycle. An item might be marked as shipped before it’s even picked or packed. It can also be given to the wrong carrier, explains Total Logistics Designs.
There could be delays in the sorting and scanning process after pickup. The analytics company says short-term operational issues are familiar, but retailers should also consider strategies for how certain choices may affect order cycle times.
Reducing long order delivery times
Total Logistics Designs advises retailers to focus on operational and strategic causes to reduce long order delivery times.
“Whether managing fulfillment in-house or using a third party, retailers must closely examine the proposed solutions. [This helps] to determine which best support their order cycle time goals.” It further warns that the solution should not only “address technology questions.” The location of the fulfillment centers should also be considered.
“Similarly, carrier selection should involve more than just evaluating costs; retailers should also assess whether the carriers’ service levels from the proposed fulfillment locations align with the order cycle time goals for key markets,” says Total Logistics Designs.
By making informed long-term strategic decisions and ensuring alignment with order cycle time goals, retailers can improve supply chain efficiency and create that “perfect order.”
NOW READ: Insight into retail: Priorities for 2024
About the author
Mia is a multi-award-winning journalist. She has more than 14 years of experience in mainstream media. She's covered many historic moments that happened in Africa and internationally. She has a strong focus on human interest stories, to bring her readers and viewers closer to the topics at hand.
