The order cycle illustrates the entire process of delivering orders from the manufacturer to the end customer.
It covers all the steps and time elapsing between the placing of an order and its receipt by the user.
More specifically, the order cycle includes the following stages:
- order placement by the customer,
- order validation by the ecommerce site,
- payment validation,
- printing of the invoice and shipping labels,
- preparation of the package for shipment,
- transfering of the order to logistics partner,
- shipping of the order, and
- delivery of the order to the customer by the carrier.
There are various factors that will have an impact on the length of an order cycle, including, for instance, the efficiency of the business’s distribution center as well as the company’s methods for handling stock control and inventory management (e.g. the just-in-time strategy vs. the first-in-first-out strategy).
Today, most ecommerce sites have a specific tab that allows customers to see the status of their orders. This is a very practical tool, which allows customers to be patient until they receive their items and the order fulfillment process is complete.
What's more, this tab eliminates the need for customers to contact customer service to find out the status of their order. This considerably reduces the workload of customer service, and ultimately saves money.
More than ever, new logistics methods make it possible to standardize the order cycle and track the progress of delivery, from purchase requisition to final invoice payment, right through to delivery of products to their destination address. An optimized order cycle can help to lower distribution cost and improve the customer experience.
