what does aro mean in purchasing

what does aro mean in purchasing is an important term in procurement and purchasing management. ARO stands for “After Receipt of Order,” which refers to the time frame in which a supplier will process and ship an order after receiving a customer’s purchase order. This metric is crucial for managing expectations regarding delivery times. Businesses often use ARO to track their supplier’s efficiency in processing orders and ensuring timely deliveries. Understanding ARO can help companies set accurate timelines and make informed decisions when choosing suppliers, as it reflects the supplier’s capacity to fulfill orders quickly.