Order Complete Manufacture to Customer Receipt of Order

What is Order Complete Manufacture to Customer Receipt of Order?

Order Complete Manufacture to Customer Receipt of Order

Order Complete Manufacture to Customer Receipt of Order refers to the average lead time from when an order is ready for shipment to the customer's receipt of the order. This process involves several sub-elements that contribute to the overall lead time. These sub-elements include pick/pack time, preparation for shipment, total transit time for all components to the consolidation point, consolidation, queue time, and additional transit time to customer receipt.

The first sub-element, pick/pack time, refers to the time taken to pick the items from the inventory and pack them securely for shipment. This step ensures that the correct products are selected and packaged appropriately to avoid any damage during transit.

Preparation for shipment involves the necessary activities to prepare the order for transportation. This may include labeling, documentation, and any other requirements specific to the shipment method or destination.

Total transit time for all components to the consolidation point refers to the time it takes for all the components of the order to reach a central location where they can be consolidated. This is particularly relevant for orders that consist of multiple items or components that are sourced from different locations.

Consolidation is the process of combining all the components of the order into a single shipment. This step ensures that the order is complete and ready for delivery to the customer.

Queue time refers to the time spent in a queue or waiting area before the order is dispatched for delivery. This can occur at various stages of the logistics process, such as during consolidation or at the transportation hub.

Finally, additional transit time to customer receipt accounts for the time it takes for the order to reach the customer's location from the consolidation point. This includes the transportation time and any potential delays that may occur during transit.

It is important to note that the lead time for Order Complete Manufacture to Customer Receipt of Order is determined separately for different types of products. Make-to-Order, Configure/Package-to-Order, Engineer-to-Order, and Make-to-Stock products may have different lead times due to variations in manufacturing processes and inventory management strategies.

Understanding the lead time for Order Complete Manufacture to Customer Receipt of Order is crucial for businesses to effectively manage their supply chain and meet customer expectations. By optimizing each sub-element and minimizing delays, companies can ensure timely delivery and enhance customer satisfaction.