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  • Writer's pictureSedat Onat

PLT/POLT - Purchasing Order Lead Time

Updated: Aug 30, 2023

P(O)LT Purchasing (Order) Lead Time = Purchasing Flow Time

Order Delivery Date - Material Order date = Purchase Flow Time

The time to receive the order is opened by the relevant group.

Although it varies on a sectoral basis, the general processes are;

  • Order confirmation

  • Bid collection

  • Tender (if there is no Institutional Agreement)

  • Contract (if not available)

  • Payment confirmation

  • Payment

  • Production

  • Foreign Logistics

  • Handling

  • Quality control

  • Internal Logistics

  • etc.

Ways to shorten the Purchasing Flow Time;

  • Development of stock tracking systems

  • Simplification of procedures

  • Establishment of decision support systems to anticipate seasonal needs

  • Automation of orders by including them in the Minimum Stock system

  • Preventing orders from opening on weekends (An order opened on Friday can only be processed on Monday.)

  • Reducing the number of transactions thanks to order consolidation

  • Developing the supplier portfolio by category

  • Improving communication with suppliers

  • Ultimately, looking at the process as a whole, carefully overhauling all stages, and carefully evaluating the feedback to be received from internal and external stakeholders in this process (Using people's brains, not just their hands)




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