Procurement Lead Time
Procurement
Procurement Lead Time
Total time required to source, approve, order and receive purchased goods or services.
Examples
- 01Procurement lead time for a special pump is 10 weeks: 2 weeks for quotes, 1 week for internal approval and 7 weeks for delivery.
- 02When choosing between two suppliers, the buyer weighs procurement lead time together with quality and total cost, not price alone.
- 03Removing one approval level for orders below EUR 5,000 cuts procurement lead time by a week for most MRO purchases.