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Supplier Lead Time
Procurement

Supplier Lead Time

Elapsed time from purchase-order release until material is received and available.

Examples

  1. 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.
  2. 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.
  3. 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.

Related terms

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