Cut-off time in intralogistics
In intralogistics , the cut-off time describes the time at which an order must leave the warehouse and be handed over to the carrier so that it can still be delivered within a predefined period.
On the other hand, a retailer understands the cut-off time to be the point in time at which he must transmit the order data to the logistics provider at the latest so that the latter can still meet the required delivery time to the destination. This so-called cut-off time, which in intralogistics describes the time at which the order is fed into the warehouse management system, is playing an increasingly important role, particularly in e-commerce (online retail). In times of same-day delivery, the possibility of mobile Internet use and ever shorter throughput times in the warehouse, an actual situation has arisen that emphasizes fast and time-oriented delivery to the customer as the most important criterion.
Cut-off time in practice
In practice, this automatically reduces the time window for picking due to a later cut-off time. Additional processing steps, such as shipment consolidation or packing sequences, must also be taken into account. However, in addition to a high level of service, accurate sequencing of deliveries requires that the internal processes along the supply chain are clearly defined.
The necessary time can only be gained through shorter throughput times in the warehouse between order receipt and delivery. This means that the cut-off time can be pushed back and the loss of a delivery day can be avoided.
Manfred Preiß
Economic outlook
Cut-off times and the same-day delivery trend will lead to a standardized acceleration of delivery times in the future and will probably have a positive impact on the sales development of all parties involved: Experts estimate that the market for time-based delivery of goods will grow to around three billion euros in turnover in Western Europe by 2020. However, the increasingly later cut-off time also requires efficient logistics in order to get a grip on the currently still high costs for more individual deliveries. In addition, logisticians have to master the interplay of picking, packing and delivery within a few hours. A good location of the distribution centers is also crucial. This ultimately ensures that every point, for example in Germany, can be reached within a few hours. This makes it possible to send shipments as late as possible and still ensure delivery within Germany on the following working day or even on the same day.
Information on the material flow before the cut-off can be found under Ant algorithm.
Image source: © Darren Moloney, License(CC BY 2.0)