Lead time

What is a lead time?


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
  • Customs
  • Delivery time


Lead time = order process time + production lead time + delivery lead time