Supplier Lead Time
Procurement
Supplier Lead Time
Elapsed time from purchase-order release until material is received and available.
Examples
- 01Supplier lead time for stainless steel tube is 6 weeks from purchase order to goods receipt, while the plant's planning system still assumes 4.
- 02Every month, the buyer compares actual supplier lead time with the agreed time for the 50 most important items and discusses gaps with the supplier.
- 03When supplier lead time for the tube grows to 9 weeks, the planner updates the system the same day and adds two weeks of safety stock until it recovers.