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ΛειτουργίεςLT

Lead time

Σύντομη απάντηση

The total time between placing a replenishment order and the goods becoming actually available for sale.

Βασικά συμπεράσματα

  • Order lead time - supplier order processing
  • Transit lead time - actual transport
  • Receiving lead time - receipt and put-away (dock-to-stock)

What lead time is

Lead time is the interval between placing an order with a supplier and the moment goods are received, verified and available for sale or shipment. It includes supplier processing, transport, customs and receiving (dock-to-stock).

Why it matters to the board

Lead time directly drives safety stock levels and the reorder point. Long or unstable lead times force larger buffer stocks, lock up working capital and increase stockout risk.

Components

  • Order lead time - supplier order processing
  • Transit lead time - actual transport
  • Receiving lead time - receipt and put-away (dock-to-stock)

How CRMconnect helps

CRMconnect measures real lead time per supplier and SKU from actual order and receipt history, not theoretical estimates, and feeds this into reorder points and forecasting.

Πραγματικό παράδειγμα

A distributor assumed a 7-day lead time for a supplier, but real data in CRMconnect showed a 12-day average with 18-day peaks. Adjusting safety stock to the real lead time removed 3 major stockouts per quarter.

Ενημέρωση:

Συχνές ερωτήσεις

Difference between lead time and order cycle time?+

Lead time covers replenishment (supplier to available stock), while order cycle time covers customer order fulfilment (order to delivery). They are opposite flows of the chain.

How do I reduce lead time?+

Through closer or redundant suppliers, automatic orders triggered at the reorder point, and real-time visibility on order status - all orchestrated in the operations layer.

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Σχετικοί όροι

Λειτουργίες

Reorder Point (ROP)

The stock level at which a new order must be placed to avoid a stockout before goods arrive.

Logistics

Safety stock

Extra buffer inventory held to prevent stockouts caused by demand or supply variability.

Λειτουργίες

Economic Order Quantity (EOQ)

The optimal order quantity that minimises the combined total of ordering and holding costs.

Λειτουργίες

Demand Forecasting

Estimating future demand per product based on sales history, seasonality and external factors.