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Lead Time Management

What is Lead Time?​

The total time required from initiating a purchase or production order to receiving finished goods, including:

  • Procurement Lead Time: Supplier processing, manufacturing, and shipping.
  • Production Lead Time: In-house manufacturing cycle.

Purpose​

  • Predict accurate delivery dates
  • Optimize inventory planning
  • Minimize supply chain disruptions

Key Features​

Procurement Lead Time​

  • Vendor-Specific Timelines:
    • Order processing time
    • Production time (for made-to-order items)
    • Transportation time (Sea/Air/Truck)
  • Auto-PO Generation: Triggers orders based on lead time plus demand forecasts.

Production Lead Time​

  • BOM-Based Scheduling: Auto-calculates time needed for components.
  • Work Center Calendars: Accounts for machine and labor availability.

Smart Alerts​

  • Push notifications for delays.

Reporting​

  • Lead Time Variance Reports: Compare estimated vs. actual timelines.

Key Benefits​

  • Reduced Stockouts: Align orders with lead times.
  • Lower Inventory Costs: Avoid overstocking.
  • Improved On-Time Delivery: Meet customer promises.
  • Supplier Performance Tracking: Identify bottlenecks.

Usage Guide​

Configure Settings​

Go to Lead Time Defaults Define:

  • Default transport times (e.g., Sea = 30 days)
  • Buffer time

Vendor Setup​

Navigate to Procurement Vendors Select Vendor. Enter:

  • Order Processing Time
  • Production Time
  • Preferred Shipment Method

Production Scheduling​

Create a Work Order (Production > Work Orders). System auto-calculates:

  • BOM lead times
  • Work center capacity

Monitor​

Use Lead Time Dashboard (Reports > Supply Chain) to track delays.

Alerts​

Set up Alerts > Lead Time Exceeded (Email/SMS notifications).