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Key Performance Indicators (KPI) by Bernard Marr

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Order fulfilment cycle time (OFCT)

Strategic perspective

Operational processes and supply chain perspective

Key performance question this indicator helps to answer

How efficient are our processes?

Why is this indicator important?

Order fulfillment cycle time (OFCT) is a continuous measurement defined as the amount of time from customer authorisation of a sales order to customer receipt of the product. This improvement concept applies equally well to manufacturing and service businesses.

OFCT (often known as customer order cycle time) is an important measure because it considers the performance of end-to-end business operations and therefore opens up significant improvement opportunities that are often missed in conventional efficiency ...

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