Common Causes of High Turnaround Time in the B2B Sector

In today’s highly competitive logistics and supply chain industry, turnaround time has become a crucial factor that determines the success of business operations. Efficient management of turnaround time not only speeds up the flow of goods but also reduces operational costs and improves customer satisfaction. Understanding the causes and finding effective ways to reduce turnaround time can give companies a significant competitive advantage in meeting market demands promptly and reliably. Get to know more in this TransTRACK article!

Why turnaround time is so important in the logistics and supply chain sector

Turnaround time (TAT) is a vital metric in the logistics and supply chain sector because it directly affects the speed and efficiency of operations. A shorter TAT means goods and vehicles spend less time idle at warehouses, ports, or loading docks, allowing for quicker movement throughout the supply chain. This improves asset utilization, reduces storage and demurrage costs, and enhances coordination across different logistics processes. In fast-paced industries, minimizing delays can make a significant difference in maintaining consistent supply and meeting customer expectations.

Moreover, a faster and more predictable TAT contributes to higher customer satisfaction by ensuring on-time deliveries and greater service reliability. It enables businesses to respond swiftly to market demands, handle urgent orders, and maintain lean inventory levels. Technology platforms like TransTRACK help reduce turnaround time through real-time tracking, route optimization, and automated alerts—empowering logistics teams with the visibility and control needed to streamline operations and stay competitive.

How Turnaround Time Affects Business Operations

Turnaround time (TAT) plays a pivotal role in ensuring supply chain efficiency, cost control, and customer satisfaction. Below is a breakdown of how TAT directly influences various aspects of business operations:

Impact of Turnaround Time on Business Operations

• Faster turnaround time accelerates the flow of goods and vehicles, leading to higher operational efficiency.
• Longer TAT can cause production, delivery, and distribution delays, disrupting the supply chain.
• Efficient TAT enables more accurate logistics planning and smoother coordination among stakeholders.

Lead Time and Customer Satisfaction

• A shorter TAT contributes to reduced lead time, allowing businesses to fulfill orders more quickly and reliably.
• Timely delivery improves customer trust and enhances overall satisfaction with the service.
• In competitive markets, the ability to deliver faster than competitors becomes a strong service advantage.

Direct Impact on Logistics Costs and Asset Utilization

• Improved TAT helps lower operational costs by reducing fuel consumption, labor time, storage fees, and demurrage.
• It increases the availability and reuse of assets such as vehicles, containers, and warehouse space.
• Optimizing TAT ultimately leads to better asset utilization and improved return on investment.

Factors Affecting Turnaround Time

Turnaround time (TAT) is influenced by several operational and managerial elements within the supply chain. Understanding these factors is essential for identifying inefficiencies and improving overall logistics performance. Below are three major factors that commonly affect TAT:

1. Process Complexity

The more complex the process—such as involving multiple approvals, manual documentation, or coordination across departments—the longer the turnaround time tends to be. Complex workflows increase the potential for delays, miscommunication, and operational errors. Simplifying or automating these processes helps reduce TAT significantly.

2. Resource Availability

Turnaround time is also dependent on the availability of key resources such as labor, equipment, vehicles, or storage space. Shortages or unbalanced resource allocation can cause operational bottlenecks, especially during peak periods. Ensuring sufficient and properly managed resources helps maintain smooth and timely operations.

3. Speed of Decision Making

Slow decision-making at any stage of the process—whether in issue resolution, approvals, or coordination—can significantly prolong turnaround time. Delays often occur when frontline staff must wait for managerial input or data. Empowering teams with real-time information and clear authority speeds up decision-making and improves TAT.

Analyze the Causes of High Turnaround Time in the B2B Sector

High turnaround time in the B2B sector often stems from inefficiencies and delays within various parts of the supply chain. Identifying the root causes helps businesses target improvements that enhance speed and reliability. Key causes include:

Bottlenecks in the Warehouse Process

Warehouse operations can become a major source of delay when inbound or outbound processes are congested. This might happen due to insufficient loading/unloading docks, limited handling equipment, or poorly organized inventory management. Bottlenecks slow down the movement of goods, increase waiting times for transport vehicles, and reduce overall throughput.

Delay in Approval or Decision Making

In B2B transactions, multiple layers of approval and coordination are often required, from procurement to quality checks and compliance. Delays in obtaining these approvals can stall shipments or processing times significantly. Slow decision-making can result from unclear responsibilities, lack of real-time data, or reliance on manual communication methods.

Poor Vendor-Logistics Coordination

Effective collaboration between vendors and logistics providers is critical for smooth operations. When coordination is lacking—such as misaligned schedules, incomplete documentation, or inconsistent communication—it leads to missed deliveries, errors, and additional waiting time. Poor coordination disrupts the flow of goods and contributes directly to increased turnaround time.

Strategies to Reduce Turnaround Time in Singapore Operations

To improve efficiency and reduce turnaround time in Singapore’s competitive logistics environment, businesses can adopt several proven strategies. These approaches focus on technology integration, process optimization, and enhanced visibility to streamline operations:

ERP/TMS/WMS System Integration

Integrating Enterprise Resource Planning (ERP), Transportation Management Systems (TMS), and Warehouse Management Systems (WMS) creates a seamless flow of data across departments. This reduces manual data entry, minimizes errors, and enables synchronized planning between procurement, warehousing, and transportation. The result is faster decision-making and smoother handoffs, significantly cutting turnaround time.

Re-engineering Workflow

Analyzing and redesigning existing workflows to eliminate redundancies and bottlenecks helps improve process efficiency. This might include simplifying approval chains, consolidating handling steps, or reorganizing warehouse layouts for faster loading and unloading. Continuous process improvement ensures that operations remain lean and responsive to changing demands.

Real-Time Tracking & Automation

Implementing real-time tracking technologies and automation tools provides instant visibility into the status of shipments, assets, and resources. Automated alerts for delays or exceptions allow teams to act proactively before issues escalate. Automation of routine tasks—such as documentation, scheduling, and inventory updates—further speeds up operations and reduces turnaround time.

How to Calculate Turnaround Time

Turnaround time (TAT) is the total time taken to complete a specific process or cycle, from the moment it starts until it finishes. In logistics and supply chain, it typically measures the time between when a vehicle, shipment, or order arrives at a facility and when it departs or is completed.

Basic formula:

Steps to calculate TAT:

1. Define the start point: For example, the time a truck arrives at the warehouse or a shipment reaches the port.
2. Define the end point: For example, the time the truck leaves the warehouse or the shipment is dispatched.
3. Measure the elapsed time: Calculate the difference between the end time and start time, usually expressed in minutes, hours, or days depending on the process scale.

Example:
If a truck arrives at 9:00 AM and departs at 11:30 AM, the turnaround time is:

11:30 AM – 9:00 AM = 2 hours 30 minutes

By tracking and analyzing turnaround times regularly, companies can identify delays and improve operational efficiency.

Reducing turnaround time is essential for optimizing logistics efficiency, cutting costs, and enhancing customer satisfaction. With the right strategies and tools in place, businesses can streamline their operations and stay competitive in today’s fast-paced market.

Maximize your operational performance and minimize delays by leveraging the Fleet Management System from TransTRACK. Experience real-time vehicle tracking, automated reporting, and advanced analytics designed to help you monitor, control, and improve turnaround times effortlessly. Take the next step in transforming your logistics—partner with TransTRACK today.