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RS12

Deliver Cycle Time

Deliver Cycle Time measures the average time required to process orders in the Deliver process (order management, handling, transportation). It measures portion of the RS1 the order is in process in Deliver. It does not include the time the order is waiting for Make or Source processes to complete.

Calculation

Deliver Cycle Time
=
n
Σ  [(Delivery Date – Availability Date) + (Routing Date – Order Date)]
i=1
n

where

  • Delivery Date = The date/time the order was delivered and accepted by the customer or the customer's agent at the agreed delivery point. Example agreed delivery points include: Pickup (Discuss Contract Custom Solution), Departure Port (FCA, FAS) or Vessel (FOB), Destination Port (CPT, CIF, CFR, DAT) or Customer (CIP, DAP, DDP)
  • Available Date = The date/time the product required for the order was transferred by the source of the supply (for example the date/time on the manufacturing completion for a Make product)
  • Routing Date = The date/time the order was routed to the source of supply (for example the date/time on the Purchase Requisition for a Buy product)
  • Order Date = The date/time the order was submitted by the customer

Unit of measure: Days (Calendar days)

Importance

Deliver Cycle Time provides insights into the average time the Deliver process requires to fulfill orders. For MTO and ETO supply chains this helps identify where delays occur in the overall Order-to-Cash Cyle (RS1) experienced by customers.

Notes

For Make-to-Stock supply chains Deliver Cycle Time and RS1 will be similar. The Deliver-from-Stock process does not route orders as planning processes are tasked with replenishing inventories. It is recommended to use Clean Order Date instead of Routing Date. Clean Order Date is the date/time the order was free of all relevant holds and blocks (i.e. shippable if stock were available).

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Hierarchy

IDNameLevelx
RS1Order Cycle Time1RS1
RS12Deliver Cycle Time2RS12

Process(es)

IDNameLevelx
P4Plan Deliver2P4
P403Calculate Delivery Plan3P403
D1Deliver-From-Stock2D1
D102Create Order3D102
D103Reserve Inventory3D103
D104Schedule Transportation3D104
D107Pick3D107
D108Pack3D108
D109Load3D109
D110Ship3D110
D2Deliver-to-Order2D2
D202Validate & Create Order3D202
D203Route & Schedule Order3D203
D204Schedule Transportation3D204
D207Pick3D207
D208Pack3D208
D209Load3D209
D210Ship3D210
D3Deliver-To-Engineering-Order2D3
D303Create Project Order3D303
D304Schedule Project Resources3D304
D305Schedule Delivery & Installation3D305
D307Receive & Stage3D307
D308Pick3D308
D309Pack3D309
D310Load3D310
D311Ship3D311
D4Deliver Returns2D4
D402Request Return Authorization3D402
D403Schedule Transportation3D403
D405Pick3D405
D406Pack3D406
D407Load3D407
D408Ship3D408

Term(s)

IDNameClearx
XDKCross-DockingXDK
O2COrder-to-CashO2C
Deliver Cycle Time Order Cycle Time 21200 2 Responsiveness, Order Management, Logistics, Sales Order, Pick, Pack, Load, Ship, Deliver, Cycle Time, Lead-time, Supply Chain The average time required to process orders in theDeliver process (order management, handling, transport). It measures portion of the order cycle time the order is in process in Deliver. It does not include the time the order is waiting for Make or Source processes to complete