Lead time is the time it takes for a customer to receive a product after they order it. This KPI measures the efficiency of the entire supply chain or business.
What factors can impact my lead time?
- Review period: how often you order
- IT confirmation delay / Purchase Order delays
- Production lead time
- Picking/Packing time in the warehouse or factory
- Waiting time before shipping
- Transportation time / transit time
- Delivery time
Lead time = order process time + production lead time + delivery lead time