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Logistics & Supply Chain vocabulary · Supply Chain Management

Lead time

Meaning in logistics & supply chain, with examples

/ˈliːd taɪm/nounCore term

In logistics & supply chain, lead time means: The time between placing an order or starting a process and receiving the finished result, for example from sending a purchase order to the goods arriving.

In Turkish: tedarik süresi, termin süresi, teslim süresi

How it is used

Used by buyers, planners and suppliers when agreeing delivery dates. People say a lead time is long, short or 'six to eight weeks', and they try to reduce or shorten it.

Example sentences

  1. The supplier has increased its lead time from four to ten weeks.

  2. What's the lead time on the spare parts if we order today?

Common collocations

  • long lead time
  • reduce lead time
  • lead time of six weeks
  • supplier lead time
  • production lead time
  • transit timeThe time goods spend travelling from the point of departure to the destination, not counting time for production, loading or customs.
  • purchase orderAn official document a buyer sends to a supplier to order goods or services, listing the items, quantities, prices and delivery terms.
  • safety stockExtra stock kept on top of expected demand to protect against sudden increases in demand or late deliveries from suppliers.
  • reorder pointThe stock level at which a new order should be placed, calculated so that the new goods arrive before the existing stock runs out.
  • supplierA company or person that provides goods, materials or services to another business, usually at an agreed price and on agreed delivery terms.

This word in other fields

The same English word can have a different meaning in another field:

More terms: Supply Chain Management

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