Difference between revisions of "RS12"

Latest revision as of 14:48, 10 June 2017

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

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 (EXW), 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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