Procurement:  Supplying Lead Times

Procurement: Supplying Lead Times

Data & Calculation

It is important to review actual lead times of all deliveries over a period by items and by suppliers

  • For each delivery, actual lead time = received date – purchase order created date.
  • The lead time compliance is the percentage of actual lead times within the standard lead time promised by suppliers.
  • The lead time mean and standard deviation over a period can be calculated by items and suppliers. They are commonly used to measure suppliers’ speed and dependability.

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