Lead Time / Delivery Time
What is the Lead Time?
Lead Time / Delivery Time includes all processes from receiving the order from the customer to delivery to the customer. In this sense, Order Cycle Time. Lead Time / Delivery Time has a very high importance for the institution as it is directly related to how the institution appears in terms of the service the customer receives.
What is meant by customer here may be perceived as a "Real Customer" in E-Commerce companies, and as an internal customer in Construction and other project-based companies.
What needs to be done to achieve shorter Lead Time / Delivery Time
Analyzing Processes: First, existing processes are analyzed in detail to determine which steps extend and delay the processing time. (See: Wikipedia / Business Process Re-Engineering)
Efficiency Improvement: The necessary steps to make your processes more efficient are determined, the workflow is rearranged and unnecessary processes are eliminated to increase efficiency.
Supply Chain Collaboration: It would be beneficial to optimize each stage of the chain by establishing closer cooperation with suppliers.
Correct and Adequate Technology Use: In addition to using appropriate technology and software to support business processes, automation and data analytics can also make processes faster.
Workforce Training: Training of personnel is one of the decisive points for the healthy progress of the processes. Being well trained will enable them to understand the processes better and solve any problems that may arise or make correct notifications. As a factory worker said to his boss when retiring; “You paid for the work I did with my hands for 25 years. However, you could have used my brain for the same amount of time, and for free.” (Marcum, 2004).
Supplier Diversity: It will always be beneficial to work with multiple suppliers in order to make the supply chain more resilient. (See: Sourcing)
Demand Forecast Improvement:Better demand forecasts help in stock reduction and speeding up processes.
Performance Measurement: Regular monitoring of processes and performance measurement provide significant assistance in identifying improvement opportunities. (See: KPI)
Continuous Improvement: Constantly reviewing processes and looking for improvement opportunities, optimizing your business processes is not a process, it requires a continuous effort. (See: Kaizen)
My related articles
Marcum, Dave. 2004.BusinessMotive. [trans.] Osman Deniztekin. Istanbul: Varlık Publications, 2004. p. 280. ISBN 978-975-434-275-8.
Cover photo: Packsend / Order Cycle Time