What is the order lead time?
Whether a company is competitive depends on various criteria. The most important factor is whether the company's own products or services meet the requirements of the market.
Order throughput time in logistics is one of these requirements. It describes the time it takes on average to process orders for picking or shipping. The order processing time is variable, as it depends on many different criteria.
This is how the order throughput time in logistics is made up
The order throughput time includes various components:
- The time required to carry out all sequence cuts
- The time for additional drainage cuts
- The delivery time (transportation time)
- The storage time
As the order throughput time is decisive for the quality of logistics and forwarding services, a reduction in this time is always desirable. This can be achieved by:
- Digitization of warehouse management systems, for example
- Documenting and analyzing malfunctions and problems (with the aim of preventing further ones)
- Process optimization
- Further training of employees
