Glossary
Order Processing Time
Time taken from order receipt by the warehouse to order shipment. The receipt of order can be from various channels either online or offline.
What is Order Processing Time?
Time taken from order receipt by the warehouse to order shipment. The receipt of order can be from various channels either online or offline.
How to calculate Order Processing Time?
(Sum of Processing Times for All Orders) / Total Orders
What is the business impact of Order Processing Time?
In the process of order receiving to order fulfillment, Faster processing enhances customer satisfaction and enables quicker inventory turnover.
Industry benchmarks for Order Processing Time?
The benchmarks can differ based on the product/industry category:
- 24-48 hours for most e-commerce fulfillment
- 24-48 hours for most Consumer Packaged goods.
- Same-day delivery for groceries.
How to improve Order Processing Time?
- Automate order processing through a Warehouse Management System (WMS)
- Improve communication between departments
- Optimize warehouse layout by implementing a frequent ABC analysis