Credit holds
Orders that stop for a manual credit check wait for a person, not for stock.
Measure: orders on holdOracle Fusion Order Management
Close every order days sooner.
Order Cycle Time is the average time from creating an order to closing it. Every day an order waits on a credit hold, a manual promise date or a fulfilment exception is a day the cash is not in your account.
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Order cycle time calculator
What are slower orders costing you?
Order Cycle Time, as Orbrick defines it, valued with the Cashflow Unlock formula: cash that arrives sooner when orders close faster.
days
Average days from order creation to order close, from your Oracle Order Management data.
days
Your service-level target, or the cycle time your best-run business unit already achieves.
$
Total value of orders closed in a year.
%
Your WACC or borrowing rate. Converts days of cash into a dollar cost.
What slows order fulfillment
Four places orders lose days.
Each one stretches the time between a customer ordering and you being paid.
Manual order promising
Promise dates set by hand are slow, and wrong ones create rework downstream.
Measure: promise accuracyFulfilment exceptions and backorders
Shortages and split shipments keep orders open long after most of the goods have left.
Measure: Improved Backordered RateLag between shipping and invoicing
An order that has shipped but not invoiced is finished work that is not yet earning.
Measure: days from ship to invoiceFurther reading
More on order to cash
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How Oracle SCM Cloud Cuts Production Lead Time (And Why Your Factory Needs It Now)
How Oracle SCM Cloud takes days out of production lead time, upstream of every order.
Read the article -
From Stockouts to Seamless Operations Using Mobile Inventory
From stockouts to seamless operations: mobile inventory that keeps orders moving.
Read the article -
The DSO Dashboard That Looks Healthy Until Cash Stops Moving
The DSO dashboard that looks healthy until cash stops moving: the other end of order to cash.
Read the article
Watch
From Orbrick’s YouTube channel
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From Order to Cash: Improving Fulfillment Cycle Time with Oracle Fusion 8 min
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Accelerating Cash Flow: How Modern AR on Oracle Fusion Shortens the Order-to-Cash Cycle 54 min
Next step
See where your orders are waiting.
A Value Discovery measures Order Cycle Time in your own Oracle Order Management data and shows which holds and exceptions are costing you the most days.