Lead time
Lead time is the total time between placing an order with a supplier and having sellable stock, covering production, shipping, and check-in.
Lead time has two main parts: production time, how long the factory takes to make your units, and transit time, how long freight and customs take. Sea freight is cheap but slow; air is fast but expensive. Add receiving and prep at the warehouse and the true door-to-shelf number is often longer than the supplier's quote.
Reorders live and die by lead time. If your stock covers six weeks of sales and your true lead time is eight, a stockout is already scheduled.
Why it matters
Every reorder decision is a bet on lead time, and getting it wrong means stockouts that surrender rank or emergency air freight that surrenders margin.
Related terms
See Lead time on real products
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