Lead Time

Lead Time is the total time taken from the initiation of a process to its completion. In supply chain and logistics, it commonly refers to the time between placing an order and receiving the goods.

Lead times refer to the amount of time between the start of a supply chain process and the completion of the same process. In supply chain management, lead time exclusively refers to the time it takes for a supplier company to have goods ready for delivery.

General Lead Time Formula

Lead Time = Order Processing Time + Production Time + Delivery Time

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Author: Zeya Rahman, Demand & Logistics Division Manager

Course Information

Course Instructor

Jessa Marie Cruz Bansil Author

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Order Lead Time
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Manufacturing Lead Time
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Procurement Lead Time
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Delivery Lead Time
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Components of Lead Time
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Factors Affecting Lead Time
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Importance of Lead Time
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Lead Time vs. Delivery Time
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