Formula
Order Fulfillment Time = (Time Order is Shipped – Time Order is Placed)
Calculation Example
If an order is placed at 10 AM and shipped at 3 PM, Order Fulfillment Time = 5 hours
Data Source
WMS (Warehouse Management System), ERP Systems, Logistics Reports
Tracking Frequency
Daily, Weekly, Monthly
Optimal Value
Lower is better; same-day or next-day fulfillment is ideal.
Minimum Acceptable Value
Longer fulfillment times can reduce customer satisfaction.
Benchmark
Industry benchmarks: E-commerce ~24-48 hours, Retail ~2-5 days, B2B ~3-7 days
Recommended Chart Type
Line chart (to track trends), Bar chart (to compare warehouses)
How It Appears in Reports
Displayed in logistics reports to assess shipping efficiency.
Why Is This KPI Important?
Indicates how quickly a company processes and ships orders.
Typical Problems and Limitations
Does not account for external delays like supplier or courier issues.
Actions for Poor Results
Optimize warehouse operations, improve inventory management, automate order processing.
Related KPIs
Supply Chain Efficiency, Return Rate, Customer Satisfaction Score (CSAT)
Real-Life Examples
A retailer reduced fulfillment time from 48 to 24 hours by automating order picking.
Most Common Mistakes
Focusing only on speed without ensuring order accuracy.
