What is order fulfillment cycle time in SAP EPM-SCP - Supply Chain Performance Management?

SAP Term: order fulfillment cycle time

• Component: EPM-SCP

• Component Name: Supply Chain Performance Management

• Description: The average actual cycle time consistently achieved to fulfill customer orders, that means the speed at which a supply chain provides products to the customer. OFCT is the time from the customer authorization of a sales order to the customer receipt of the product. The major segments of time include customer authorization, manufacturing, distribution and transportation.

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• Key Concepts: 
  Order fulfillment cycle time is a measure of the time it takes to complete an order from the moment it is placed until it is delivered to the customer. It is a key performance indicator (KPI) used in supply chain performance management (SCPM) to measure the efficiency of the order fulfillment process. 
  
  How to use it: 
  Order fulfillment cycle time can be used to identify areas of improvement in the order fulfillment process. By measuring the cycle time, companies can identify bottlenecks and inefficiencies in their supply chain and take steps to reduce them. This can help improve customer satisfaction and reduce costs. 
  
  Tips & Tricks: 
  To accurately measure order fulfillment cycle time, companies should track each step of the process from order placement to delivery. This includes tracking the time it takes for orders to be processed, shipped, and delivered. Companies should also track any delays or disruptions that occur during the process. 
  
  Related Information: 
  Order fulfillment cycle time is closely related to other SCPM KPIs such as inventory turnover rate, on-time delivery rate, and customer satisfaction rate. By tracking these KPIs together, companies can gain a better understanding of their supply chain performance and identify areas for improvement.