From the course: Supply Chain and Operations Management Tips

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Analyze the impact of lead times

Analyze the impact of lead times

From the course: Supply Chain and Operations Management Tips

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Analyze the impact of lead times

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- Have you ever run out of inventory and tried to get someone to deliver a new shipment immediately? If you have, then you know there's almost always a delay between the time when you place an order and when the product gets delivered. And those lead times can slow down your whole business. So in this video we'll look at what causes lead times, and I'll give you some tips for reducing the lead times in your own supply chain. When you start to analyze what's involved, there are actually several different components to lead time. First, there's usually some order processing time. When you send the order it takes a while for your supplier to receive it and process the order. Then there could be manufacturing lead time if the supplier has to make your products. And there's usually some transportation lead time, the time that it takes for a shipment to travel from your supplier to your facility. In business, time is money. Long lead times are bad because they slow things down and cause…

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